Draft Buckinghamshire (Structural Changes) (modification of the local Government and Public Involvement in Health Act 2007) Regulations 2019
Jim McMahon Excerpts(5 years, 9 months ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr Austin. The Opposition do not intend to divide the Committee on these regulations, but we have some questions about the Government’s approach, and it would be helpful to get some feedback on those.
We accept that the initiation of a review has been locally led, but that is not the same as saying that the Government’s current position has universal support at local level. I will highlight a couple of points: first, as has been mentioned, there was an extensive public consultation to which there were over 3,000 responses. However, only 35% of those who responded supported the proposal for a single unitary council covering the whole of that geography. A greater number of respondents —47%—supported the creation of two unitary councils, so it is not correct to say that the current proposal for a single unitary council has local support. It is also the case that four district councils have opposed the plan that has been tabled.
Of course, the county council is supportive, but that brings me to a further concern: it is my understanding that the Government have decided to impose on the new authority the leadership of the county council leader, and I would like the Minister to explain why the Government think that is appropriate. Surely the leader of any local authority should command the support of that authority, and be either directly elected by the population or elected by the membership of that body; I am not sure that it is in the spirit of localism for the Secretary of State to impose a leader on a local authority. I wonder whether the Minister could point to an example of that action being taken in recent times, so that we can understand a bit more about why the Government have taken that decision. It would always be controversial—there has always been a disproportionate amount of power in a county council compared with the district councils. To move forward in a unified way on a shared platform, surely it would be helpful not to make such a contentious decision right at the start of that new relationship.
My second point is about the drivers for the change. As I understand it, quite a lot of them were the efficiency savings that can be realised when local authorities come together, and I recognise some of the numbers that have been referred to. However, those local authorities combined used to receive £88 million of central Government funding, but by 2020 they will receive zero. Many local authorities around the country are forced to look at new ways of saving money and being efficient—something which many central Government Departments could learn from.
The Government have refused to invest in people-driven services; meanwhile, demand is going through the roof. In particular, in adult social care and children safeguarding, the Local Government Association points to an £8 billion gap in local government funding, which the Treasury has refused to fund. In those circumstances, it cannot be the case that reorganisation is being led solely by the starving of funding from central Government. It is not acceptable that, even when reorganisation is seen as needed, or at least as needing review, central Government come in and impose a plan, which does not have majority support of those who took part in the consultation, involves a difference of opinion between the district councils and the county council, and in which the Government decide that they, instead of the membership of that new authority, should determine who its leader should be.
The Minister needs to outline why the Government have arrived at that decision and point to a very recent example of such a case that we can look at after considering this statutory instrument, so that, hopefully, we can move forward in a way that creates not just a unified local authority, but a sense of common purpose. If the Government do not listen to local concerns and continue to impose a model from the top down, against local public opinion, against where the district councils in that area are at, and then, on top of that, impose a leader, I fear that that is not in the spirit of localism and will not create a sense of common purpose at all.
Andrew Percy
I will finish my point, if I may, but I will give way before I sit down.
There can never be total consensus. When Durham County Council was unitarised in 2009, there were probably people opposed to that. The shadow Minister, the hon. Member for Oldham West and Royton, made a comment about leadership being imposed, but that is not unusual in such reforms. As he will be aware, when we created the combined authority in the Greater Manchester area, the then police and crime commissioner —the hon. Member for Rochdale (Tony Lloyd)—was appointed as interim mayor without any election. Such a situation is not unusual.
Andrew Percy
No, because the hon. Gentleman and I sat on all the Delegated Legislation Committees on the matter at the time. I have heard many similar speeches from him, he has heard many similar speeches from me, and I suspect that we have nothing new to add.
Oral Answers to Questions
Jim McMahon Excerpts(5 years, 9 months ago)
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Mr Speaker
I beg your pardon; I am getting ahead of myself. I call Neil Coyle.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
Thank you, Mr Speaker. I was frantically trying to think of a question when you called me just now. I refer Members to my entry in the Register of Members’ Financial Interests.
The number of children in need is up, the number of looked-after children is up and the numbers of child protection plans and child conferences are up, yet the Government grant has gone down. This year, children’s services face a £1 billion funding gap—£3 billion by 2024-25—and the Local Government Association, the Children’s Commissioner, Action for Children and our councils have all warned that children will be at risk. So where’s the money?
Rishi Sunak
The hon. Gentleman should know that last year £1 billion more was spent on children’s services than when we came into office and that the recent Budget announced an extra £420 million that could be spent on children’s services. Government Members are, however, concerned with outcomes, not just the amount of money we plough into things, which is why the Department for Education is working closely with the best-performing areas to spread best practice across the country.
Local Government Funding
Jim McMahon Excerpts(5 years, 10 months ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
Thank you, Mr Walker; it is a pleasure to serve under your chairmanship. I thank my hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill) for securing this absolutely critical debate at such a critical time, as local authorities enter their budget-setting cycle. The council meetings will take place over the coming months, and councils will be forced again, for another year, to make absolutely devastating cuts to their local communities.
That is what this is about. When we talk about council cuts, it does not gain a lot of interest, but when we talk about people and communities, the impact on the future life chances of our young people and the way older people are cared for, it absolutely matters and is crucial to our communities. In truth, the fabric of our communities—the very foundation on which the Government are trying to rest future English devolution—is fragile and near breaking point.
There has been passion in the room today: 16 speakers on the Opposition Benches and four speakers on the Government Benches, including the Minister, who will speak shortly. That shows the real interest in the issue. None of us comes to Parliament to make our communities worse off. We have heard the desperate pleas from hon. Members who really care about the impact of the cuts on their communities, not for political advantage or to try to embarrass the Government, but because we live in our communities and see the impact on our neighbourhoods: the lack of funding in our schools, the effect on all those who cannot get the social care that they need, and the young people who have been denied the best possible start in life because children’s centres are taking cuts or being closed entirely.
One of the Minister’s colleagues has said that the way to revive our high streets is to open libraries on them, when hundreds of libraries are closing every year because the money is just not in the system. We need radical change and radical reform, because quite frankly, we have seen tinkering around the edges far too often, and that does not get to the crux of the issue. The crux of the issue is this: council tax and business rates have a role to pay—they are important property taxes—but both have limitations and will be pushed to breaking point if the Government do not do something.
Council tax is a hugely regressive tax. It takes 7% of low-income families’ incomes, compared with just over 1% of higher-income families’ incomes. The more pressure that is applied to council tax, the greater the pressure that is applied to low-income families. Time and again, the Government duck their responsibilities to provide central Government funding to support local communities, and the burden falls on council tax payers. Council tax will again be increased this year to the maximum level of 6%. On top of that, more money is required to go to the police, and in the case of combined authorities or mayors, even more money is applied to that precept as well, because the Government are walking away, saying, “Well, it’s not our problem,” when it is a problem absolutely of the Government’s making. Those are political choices.
It was absolutely right that austerity meant that every Department had to take its fair share of cuts, but the evidence says that local government has lost 800,000 members of its workforce—it is at its lowest level since comparable records began—while the central Government workforce figure is at its highest level since comparable records began. That is not a fair distribution of cuts or austerity. Local government continues to take the pain and the burden.
Many important points have been made today and I would love to go through the list of hon. Members who spoke. One thing that inspires me about Parliament is just how rooted in community our parliamentarians are—particularly Labour parliamentarians. I congratulate my hon. Friends on giving their communities a voice. The Minister, who is respected in local government—I am not trying to make a ding-dong match out of this, some real questions need real answers—has an opportunity to set out his stall, to say what he stands for and what he believes in, and to stand up for the pressures that local governments face. Any Minister at the Ministry of Housing, Communities and Local Government who presided over a local government family that can barely afford to make ends meet would not be fulfilling their responsibilities.
Mr Charles Walker (in the Chair)
Thank you. I will call Ms Gill to make her final remarks at fifteen seconds past four. I call the Minister.
Oral Answers to Questions
Jim McMahon Excerpts(5 years, 11 months ago)
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Jake Berry
If I may respond in Cornish, I take the opportunity to wish my hon. Friend and all his constituents Nadelik lowen. With only 109 shopping days to Brexit, I can reassure my hon. Friend that the UK shared prosperity fund will be simplified and targeted, and will tackle the challenges of our whole country, including those facing Cornwall.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
This weekend, the mayor of Liverpool, Joe Anderson, resigned from the Northern Powerhouse Partnership. He says he no longer sees the benefit, given that it was set up by a Government who just do not want to listen to it. At the same time, the Institute for Public Policy Research North paints a stark picture, where the north gets £2,500 less per head in investment on transport than London. The northern powerhouse Minister literally has one job to do. What’s going on?
Jake Berry
As Harry Enfield and his chums would say about anyone from Liverpool, including me: “Calm down, calm down.” I can confirm today that we have announced £38.4 million for Liverpool. I completely refute the IPPR figures. They exclude 60% of spending across regional boundaries. They do not apportion spending where the benefit is felt. If the hon. Gentleman wants to give some advice to his chums in the left-wing IPPR think-tank, he might say that next time they produce such figures they should print them on softer paper.
Local Government Funding: Merseyside
Jim McMahon Excerpts(6 years ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr Hollobone.
I would say that it is also a pleasure to respond to the debate, but it is not a pleasure at all; it is heartbreaking, when we consider the human stories that sit behind the numbers that we have heard today. However, I pay tribute to my hon. Friends the Members for Garston and Halewood (Maria Eagle), for Liverpool, Riverside (Dame Louise Ellman), for Wallasey (Ms Eagle), and for Liverpool, West Derby (Stephen Twigg), my right hon. Friend the Member for Knowsley (Mr Howarth), and my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger), for how they have stood up to represent their communities in the face of absolutely devastating cuts to vital public services.
I should declare an interest as a vice-president of the Local Government Association and I will use some of the LGA’s information in my speech. The truth is that austerity is not over, but it was never going to be over, because as things stand the Government do not believe in strong local public services. We have heard talk today about how the Government do not like a big state. The truth is that the Government actually do not mind a big state, provided that it is a big national state, because the workforce data today says that the national Government workforce is the biggest since comparable records began, compared with local government, which is now at its smallest since comparable records began. The disproportionate cut has not only been to local government; within England the most deprived communities have been the hardest hit. The most deprived communities have seen cuts of about £220 per person, compared with about £40 per person in the least deprived, so austerity has been targeted on local government and then within local government it has been targeted on the areas that could least afford to take the hit, in the way that we have seen.
The Government have completely ignored pleas from the cross-party LGA to do two things: first, stop the in-year cut of £1.3 billion; and, secondly, fund forward the £5.8 billion that would have addressed homelessness, adult social care and children’s services. Let us be honest—when it comes to the £410 million that is being put forward, the majority of people who work in social care are paid the minimum wage. When the national minimum wage goes up in April, those people will rightly be uplifted, but there is a cost to that for the providers. Much of the money announced in the Budget will go not to additional care for over-65s who need it, but to pay people who are being paid the lowest possible rate for providing an essential community service. I do not believe that is fair, the LGA does not believe that is fair and councils across the country do not believe that is fair, but again we see the Government turning a blind eye to it.
We all know where the real impact has been felt; we know the numbers on adult social care and the fact that 1.2 million people who would have had care in 2010 do not get that care today. We know that there are more young people who have been taken into care because they are at risk if they are kept at home, and the cost of that to local authorities. We also know, because the Government have walked away from their responsibilities, that the only way that councils can fund that care is to reduce eligibility and take the money from vital neighbourhood services.
The services that council tax payers see and value that come from the council tax that they pay have been the very services that have been taken away to fund the pressures on people’s services in every community in the country. The public say, “I’m paying more council tax, but the bins are being emptied less often, the local library has closed and the park doesn’t get maintained in the way that it used to.” All those really important services have been affected.
I hoped that when we had a change in Secretary of State that the new Secretary of State would finally have the ear of the Treasury, so that they could finally get a fair hearing and make the case for these vital community services, but it strikes me that one or two things have happened. Either the Ministry did not bother making the case in the first place, or—it could be both these things—the Treasury just does not care about the human impact of austerity and how we have seen it distributed across the country.
What I want to know, what people in the Chamber want to know and what people in England want to know is, what will the Minister do to address such chronic underfunding? It will be on his watch that an older person will die because they do not get the social care they need, or a child will be made to feel vulnerable because they are not getting the protection they need. Where will the money come from?
Rishi Sunak
Thank you, Mr Hollobone. I think the hon. Lady was being snide about the fact that Merseyside is a business rates retention pilot. I am sure that the £54 million that Merseyside will keep this year in additional funding as a result of the pilot is nothing to be snide about, and will make an enormous difference on the ground, helping the people I know she cares about. Many other local authorities across the country would be happy to be one of the pilot areas, so if she thinks that Merseyside would rather not be one and would give up the opportunity to others, I would be happy to talk to her afterwards.
Rishi Sunak
I will try to make some progress.
Business rates retention is not the only incentive for local growth, as it sits alongside the other support the Government give to local authorities’ wider ambitions through local growth deals. For example, £2 million has been invested to create the first dedicated digital skills academy in the UK, at the City of Liverpool College, and more than £13 million has been invested in a highway infrastructure scheme comprising a series of essential and integrated improvements along the A565 corridor. In sum, the Government strongly support Merseyside’s economic growth, whether through direct investment or business rates retention, and thus enable it to fund services over the years to come.
Homes (Fitness for Habitation) Bill
Jim McMahon ExcerptsFriday 26th October 2018
(6 years ago)
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Ms Buck
I am very grateful to my hon. Friend for his intervention and for his congratulations. I totally agree that in addition to the legislation we pass in this House it is crucial that we use all the tools of government communications to get a message out that people have rights, that they need to be able to exercise them, and that they need to know how and where they can go in order to do so. I am sure that the Minister will support that point.
This Bill will enable all tenants, whether private or social, to take action on the same issues and standards as local authorities, following recommendations made by the Law Commission and the Court of Appeal dating back some two decades. This is therefore very much a legislative updating whose time has come. The effect of the Bill will be that the tenant will be able to take action against the landlord to make them put right any problems or hazards that make their dwelling unfit, and the tenant could seek compensation when the landlord has not done so.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
I congratulate my hon. Friend on introducing this important Bill. Many of us will have received representations from private landlords who are screaming about the impact of this Bill on their ability to make profit. Let us be absolutely clear: if someone cannot make profit by providing a clean and safe place for people to live, they should exit the game completely.
Ms Buck
I totally agree with my hon. Friend on that. It is also fair to say that the majority of good landlords are happy to endorse that view, because their reputation is dragged down by the behaviour of the rogue minority.
The Bill is not intended as a replacement for the work of local authorities but is complementary to it, enabling tenants to take action where the council has not done so or cannot do so. For all new tenancies after the Bill comes into force, it would make it a right to have a home that did not create a risk to the health and safety of its occupants. As the excellent House of Commons Library briefing on the Bill says:
“The Grenfell Tower fire has focused attention on housing standards in the social rented stock and also in privately owned blocks of flats.”
So I am also pleased to say that the Bill was amended in Committee, with the support of the Government, to extend the fitness obligation to the building within which the dwelling forms part. So the tenant of a flat, a room or part of a shared house will be able to enforce against defects, including fire risks, that threaten their health or wellbeing in their home, even if the defect is in another part of the building.
It has been marvellous to have secured Government backing for this Bill, even to the point of strengthening it. We have had support from across the spectrum. It has come from bodies ranging from the National Landlords Association and the Residential Landlords Association, to the Chartered Institute of Environmental Health—CIEH—the Association of Residential Letting Agents, Shelter, Generation Rent, the Law Society, Mind, the National Housing Federation, the Local Government Association, Citizens Advice and others.
Draft Newcastle Upon Tyne, North Tyneside and Northumberland Combined Authority (Establishment and Functions) Order 2018
Jim McMahon Excerpts(6 years, 1 month ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Sir David.
It is good to be here again talking about devolution. Hon. Members may expect me to rush straight into an attack on how superficial the Government’s devolution is, but before I go there, I congratulate the leaders of all seven local authorities in the area on what has been achieved, in what has been a very testing time for local relationships. The Government could have approached things differently. They could have been far more inclusive and created greater opportunities for further devolution to the existing local authorities, which are more than capable of delivering far more. They are tried and tested, delivering good value for money and good public services, and they should not have artificial requirements laid upon them.
When it was clear that a deal could not be done, some local authorities naturally took a pragmatic view of how best to attract more investment from Government. Let us not fool ourselves about what the order is and what it is not. At best, it is a light-touch mayoral devolution package. The type of powers being devolved do not even come close to the existing devolution deals across the country. The type of money being devolved down to local authorities in those areas pales into insignificance compared with the austerity cuts that they have faced since the coalition Government—cuts that continued with the majority Conservative Government.
Local leaders are sick of waiting for the Government to come to their aid with investment and an idea for the future economy. Instead, they are developing their own visions for their local identity. There are good examples of that right across the north-east from Labour-run local authorities, which are showing real leadership of their place. The Government, to be frank, have walked off the pitch entirely. Given the type of powers being devolved in this order, my question is: why stop there? Local authorities in those areas can deal with far more than is being given in the devolution settlement.
Powers are one thing, but we need serious money. Let us look at the amount of transport investment across the north-east. Compared with most other regions, bar Northern Ireland, it gets nowhere near its fair share of capital or revenue investment. We know how important transport is for boosting local economies, connecting people to jobs and attracting inward investment. If the Government are determined to see a golden era, as the Minister said, where is the cash? They cannot do that on the cheap. Despite the best endeavours of local politicians, their economies have been left for a very long period to fight for themselves while Government have turned a blind eye to underinvestment in those areas. I credit those councils for negotiating the devolution deal on offer, but where is the Government cheque book?
It strikes me that since George Osborne walked away—or was moved to one side—the Treasury has just not been committed to devolution. From a Conservative point of view, it was originally a Treasury-led expedition—perhaps for different reasons, but that is where it came from. At the time, I was negotiating as one of the leaders on the Greater Manchester combined authority. In those devolution deals that were being struck, I witnessed a real tension between the Treasury and other Departments about where powers sit and how power is to be wrestled away from Whitehall.
The construct of some of those deals was quite odd, but they were reflective of the struggles and the frustration in Government. I do not see any of that here; I see a Government desperate to show that devolution is still making progress, when actually it is fairly superficial. I see a Minister who, perhaps for the best reasons—although he hides it well—is trying to make progress. But I am not seeing any real power given away from central Government. I am certainly not seeing any significant money being given away from central Government. The Government have realised—we have known this all along—that those best placed to deliver decent public services and make the best of limited resources in public investment are people in their local communities.
The question still remains: given their track record of delivering good public services, why should councils that could not quite get over the line on a mayoral devolution deal be cast to one side, without any devolution proposed at all? Will the Minister explain why local authorities are not fit to take on more budget responsibilities in adult education, for instance? Why can they not take on more responsibilities for getting people into work? Why are they not capable of taking transport capital investment from the Government and using that as a catalyst to attract inward investment? Why can local authorities that are tried and tested, and trusted by the public not do those things?
It is great that councils have come together. Again, I pay tribute to the council leaders who have created the deal, but if the Government are clear that there has to be a devolution deal for the whole of England, they cannot be so prescriptive about what that devolution should look like. With all due respect, it is a bit hypocritical for a Minister who is not directly elected to say to local politicians that if they want a fraction of the power that is held by a Government Minister who is not directly elected, they must move to a directly elected model in return. We do not directly elect our Chancellor, our Minister for adult education or Ministers in the Department for Work and Pensions, and the Minister here today is not directly elected either. For a fraction of the power from this place, local communities are mandated by Government to have a mayoral model or they get zero. I do not think that is in the spirit of a balanced and equal relationship. For me, that is still central Government telling local authorities what they can and cannot do in a very old, tired and untrustworthy way.
If the Government are really determined to see power shifted and to give people back the control that we know they demanded during the referendum, at some point—and pretty quickly—they will have to introduce a devolution framework that covers the whole of England, so that every community is included without having one set against the other. We want to see not only powers and legislation passed in this place, but genuine resources devolved down.
It cannot escape the attention of anyone in this room that the region most affected by a hard Brexit—which is what some Government Members are looking for—will be the north-east. It will take a hit the likes of which it has not seen for decades. In that context, it is legitimate to ask whether the devolution on offer is sufficient to meet the challenges that lie ahead. It is progress and it is a step forward, but it cannot be the end. I say to the Minister: this is not “Game over”. This is not the end. The devolution on offer should be seen as minor progress—progress, by the way, that is mainly to the credit of local leaders in the local authority. The Minister needs to step up, get back round the table and ensure that further power and resources are devolved as soon as possible.
Local Government Reform: Greater London
Jim McMahon Excerpts(6 years, 1 month ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
This is a really interesting debate, which is broader than London. It could be argued that if we develop a real settlement that pushes power down to communities, that ought to benefit every community in England. That will be the spirit in which I approach my response to some of the points that have been made.
A lot of the devolution debate and discussion, certainly over the past five or six years, has been about trying to get power from Westminster down to the next level, wherever that might be; in London, it is the capital, but elsewhere it will be metro areas or even some county deals in which counties have come together. That has been necessary because we are still a very centralised country, and too much power is contained not in this place—people who work here who believe that they are powerful are seriously deluded—but in Whitehall, where it still sits. We want to wrestle as much power as possible from civil servants, who are disconnected from the communities that are affected by the decisions that they make, and give that power back to local people.
That has to be at the most appropriate level, because the organisation of services is complex. Some are absolutely rooted in a localised geography, but in other cases it will make far more sense for a service to be decided and delivered at a different level—whether it is a district, a metropolitan or London borough, London itself, or a regional grouping—but it has to be right for that circumstance and for the decision that is being devolved down. The assumption should always be local.
If any power is devolved, a test should be in place to ask the question: where is it best to place this new power that is being devolved? For example, in places where we see devolution of the adult education budget, there has not really been a conversation about whether a combined authority or even a Greater London arrangement is the best place for that budget to sit, versus a local authority. That is odd, because that debate is taking place in other areas—such as Greater Manchester, which has the most advanced health devolution settlement in England; that settlement is devolved to the 10 local authorities, not to the combined authority or to the Mayor.
This move that we are taking as a nation is interesting, but it is not neat, it is not pretty and it is massively confusing for a lot of people. That does not mean that it is not necessary. We need to prove concept and prove that devolution can be made to work. We need to prove that to people who do not believe that devolution can work, and who believe that to get fairness and equity across the country, we should organise from the capital so that everyone gets the same. They are the people we need to convince.
Andrew Rosindell
The hon. Gentleman is making a lot of good points, and we agree on many things. Does he accept that an area such as mine, right on the edge of Greater London, is totally different from places such as Westminster, Kensington and Chelsea, or Islington? More powers should be given back to us in our area so that we can work with the Essex councils; that is where we are. Does he agree that centralising everything in London is not the way forward? A central area is obviously needed as our capital, but the wider London region has different needs and priorities. That should be much more decentralised.
Jim McMahon
I agree with that point. If the assumption is devolution, the bar to sending something up to a higher level should be high. There should be a proper and rigorous test in place. A danger in the development of new structures or institutions of local government in city regions—perhaps this is more of a danger outside London than in it—is that if real power is not devolved from Westminster and Whitehall to those regions, they will, by the nature of government and politics, take up power to justify their existence.
To me, the responsibility for that lies with local politicians who must ensure that they are absolutely clear about what a devolved settlement looks like for their neighbourhoods and communities. There is, however, also pressure on the Government to prove that they can really devolve power and responsibility down. In a lot of the country, people do not believe that the Government are listening to what they say. I shall not stray from the subject of the debate, but anyone who speaks to people in Lancashire at the moment will find that they are massively frustrated that their local decision to reject fracking was overturned by a Government hundreds of miles away. If we are serious about devolving power, it has to be the power that people are asking for: the power to determine what type of place they want to live in and their families to grow up in.
That is different from identity and people’s sense of belonging. I feel strongly that that is a complex debate—we could have a debate for an hour and a half on what identity is and means, because it is complex. Devolution so far has not been about trying to rewrite people’s historical and rooted identity, or about changing the entrance signs to places where people live to names that they do not recognise. That is very different from the 1974 reorganisation outside London, which tried to do just that.
Andrew Rosindell
I am glad that the hon. Gentleman made that point. That is exactly the problem we face. A “Welcome to Essex” sign has been placed on the boundary between Romford and Brentwood. Suddenly, we have been told that we are no longer Essex, because Essex County Council will only put the sign on the boundary of its area. That is nonsense. The traditional identity of the counties is being lost because of a failure by local government bureaucrats to understand true local identities. I would understand if the sign read, “You are now entering the Essex County Council area”, or whatever they want to call it, but instead it reads, “Welcome to Essex”. In my area, we are Essex, and a lot of people resent that identity being removed because of a failure to put signage in the correct location.
Jim McMahon
Perhaps I may prove my credentials. When I became the leader of Oldham Council, it stood out to me just how frustrated people were about their historical identities being challenged by a local authority that was artificially created in 1974. It did not work for either party: Oldhamers were frustrated that people in the surrounding district seemed to have an angst about them, because of this issue; and people in the district were frustrated because they did not feel that their identity was valued by the local authority. One of the first things I did on taking control of the council, therefore, was to change all the boundary signs back to reflect the district crest and the local identities of those places, which I believe are important.
That is sometimes a cause of confusion. The lines we draw on maps for administrative convenience—basically, we are talking about the most efficient administrative area for delivering and organising our public services—are often adopted to create a new brand identity for a place. I see that happening where I am. Oldham, as a place, has one foot in Lancashire and one foot in the west riding of Yorkshire. Some people think they are Mancunian and others think they are Oldhamers, but identities travel even beyond that. It is true of every community in England, including every borough and town in London and Essex, that people do not stay in one place. They travel to work. Their relationships with places, communities, neighbouring towns and the heart of the capital, which the hon. Member for Romford (Andrew Rosindell) referred to, are complicated.
Let me make some practical suggestions. Power has been given to communities through the neighbourhood planning process. Communities can self-organise and decide what physical developments take place in their area, and they get some sense of being able to control what their community looks like at the end of that process. We do not do the same for revenue spend in local government. Think about the scrutiny we give to capital investment. When a capital project is initiated, it has to go through a number of gateways to get sign-off and be approved, and it then goes through evaluation and monitoring. We do not do that for revenue spend. We spend billions of pounds of public money every year, but we do not make the same assessment of whether it is invested in the right place or have a clear view of what return on investment we should expect. Equally, communities generally are not involved in organising that.
There is no reason why people at neighbourhood level—whether that is a ward or a collection of wards that make up a town’s identity, which the hon. Gentleman mentioned—could not organise a community plan to corral all the public services in their area and decide where the local GP practice ought to be or how the police ought to organise. Local people should be able to decide how public servants work together to ensure that services are delivered in the right context for that place.
Clearly, there will always be a role for local authorities, and for strategic authorities that cover issues that naturally transcend local boundaries. We have already heard about transport, but policing now transcends those boundaries, too. Policing is far more complicated than it was before the 1960s, when we had local police forces with their own identities. We need a police force that can meet the challenges of cyber-crime, terrorism, cross-border crime and many other issues, but not at the exclusion of neighbourhood policing.
In some places, because of austerity—let us be clear that it costs money to do this well—and the demands of terrorism, cyber-crime and all the other new crimes that are really stretching the police force, resources have been transferred from neighbourhood level to the centre so the police can meet significant cost demands. People see that, because of austerity, public services are becoming more and more removed from the communities in which they live, and that hugely affects the connection they feel. We should look at that.
We need a clearly articulated devolution framework for the whole of England—London would be a beneficiary of that—rather than ad hoc deals that are agreed behind closed doors. We should not pit one place against another but have a comprehensive settlement—a framework for power to be devolved. We should start at the grassroots and work upwards, with an assumption in favour of devolution. That should be supported by fair funding to meet need and demand in local areas.
That at least would allow us to test the ideas we are debating and to see whether one framework for the whole of England works. Without that, we will always be looking in the rear-view mirror at the consequences of what has been agreed. We need to get organised. We need a plan. This offer has been made before, but Labour Members are willing to work across party lines on the issues that are not party political. Much of this is not party political—it is about people and place.
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Jake Berry)
I congratulate my hon. Friend the Member for Romford (Andrew Rosindell) on securing this debate, which is both hugely important for his constituents and nationally important in the wider framework of devolution. It is very timely and deeply appropriate given the situation we find ourselves in.
The debate has been about the future, but let me dwell for a moment on the history of local government reform in London, which to some extent put us in this situation. I do not have to tell my hon. Friend, who is proud to have been born and bred in Essex, about the 1960 Herbert commission, but it is worth focusing briefly on the Greater London Council years. We can learn a lot from our history. During those years, when the current shadow Chancellor was chairman of the finance committee, what we used to refer to as “loony left” politics came to the fore. Of course, that is now mainstream Labour politics. As someone from the city of Liverpool, I was interested to see the Labour party, at its conference in that city, move back to endorsing the views of Derek Hatton: that councils should set illegal budgets and that there should be a general strike.
Jim McMahon
I suppose I ought to intervene, given that I was more or less invited to by that comment. To be absolutely clear—this came from the leadership of the Labour party a couple of years ago, so it is not a new response: we do not support the illegal setting of council budgets. We think councils have been given a rotten settlement, and in many places they struggle to meet their legal obligations.
The question for the Government is how they can provide the resources councils need to be confident that they can set a legal budget that provides security for the people who need it, particularly in adult social care and children’s safeguarding. The failure is not on the part of council leaders. No one proposes setting an illegal budget in any local authority in the country, but there are leaders who say, “We don’t think we can meet our legal obligations if this carries on.” So far, the Government have failed to provide a convincing response.
Stewart Hosie (in the Chair)
Order. Now the politics are out of the way, I am sure we will get back to local government reform in Greater London.
Jake Berry
Well, of course the GLC was in league, through the Militant movement, with Derek Hatton’s Liverpool Labour party. It is worth focusing on the GLC. The hon. Member for Oldham West and Royton (Jim McMahon) parades the veneer of a gentle left—of herbivorous, lentil-munching, north London lefties—but the people of Liverpool and those who lived under the GLC know what the hard-left Labour party is really like. Labour councillors went around Liverpool handing out 30,000 redundancy notices to the people who worked in that city. As someone from Liverpool, let me take the opportunity to say that we will never forget that we could not get our bodies buried or our bins emptied. That is what the hard left of Militant and Momentum does to cities.
Jake Berry
I will in a moment. It is all very well the hon. Gentleman saying that that is not the view of his party, but for a shadow Minister to endorse that view on the main platform on the first day of the conference was an absolute disgrace. I will give way to the hon. Gentleman, which will afford him the opportunity to apologise for that, and to apologise to the people of Liverpool for the devastation both there and under the GLC.
Stewart Hosie (in the Chair)
Order. Before the hon. Gentleman intervenes, let me say that I want us to get back to local government reform in London very quickly.
Jim McMahon
My response is simple: what on earth does that have to do with local government reorganisation in London? The Minister has an opportunity to lay out something that has been absent during his tenure. What will the Government do to push real power down to local authorities—not just to newly created institutions through deals done behind closed doors? We need a genuine framework that pushes power down to people, communities and neighbourhoods and addresses the issues raised in the debate. That is what we are here to discuss, and we look forward to hearing his reply.
Jake Berry
I will take your guidance, Mr Hosie, and segue neatly from history to geography, which was always my favourite subject at school, but let me say briefly that the Labour party does not like the fact that the mask slipped. We should take every opportunity to inform the public in London and in our wider United Kingdom what lies behind that mask.
I move on to the geography of the Greater London Authority. I am sure that my hon. Friend the Member for Romford has noted that, in fact, the GLA and the Mayor have had some notable success since their establishment. I am sure that he, like me, celebrates the London Olympics hosted by the former Mayor of London, my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson).
Jake Berry
Perhaps I should have stuck to history, which may be a slightly safer subject for me to talk about. My hon. Friend may think that it should have been called the Essex Olympics, but I am not sure that that would have had the same international cut-through as the London Olympics. It was a significant event, not just for London—and Essex, where it took place in the traditional Essex town of Stratford—but for our entire nation.
Those Olympics, which were thanks in no small part to the late, great Baroness Jowell and the Mayor of London at the time, my right hon. Friend the Member for Uxbridge and South Ruislip, showed how the GLA and London can be at their best. Another previous Mayor of London, Ken Livingstone, introduced the congestion charge, which was extremely well implemented and significantly reduced traffic levels in the city. The Oyster card is also hugely popular, which the GLA and the Mayor were responsible for.
My hon. Friend said that today should be the start of the debate about the future shape of mayoralty and local government in London. He will understand that starting the debate for change will be hard; it will be a long road and probably require primary legislation. Most importantly of all, it will require consensus. From the Government’s point of view, we hope any changes would come from a ground-up movement rather than a central diktat from Whitehall. That plays very well with my hon. Friend’s desire for his constituents to have more control of their lives.
We must not forget that the Conservative party is the party of English devolution. We did not create the Mayor of London but we have successfully created six Metro Mayors, who were elected in May 2017. Since that date, a Mayor of Sheffield has been elected and, subject to the consent of the House, next Monday we will finalise the creation of a Mayor north of the Tyne, in Newcastle. Those elections have brought the biggest single transfer of power from Whitehall back to the people of England since the first world war. As Conservatives, we should celebrate that and be deeply proud of it. All those mayoral devolution deals have been about transferring power.
Jim McMahon
The Minister talked about the biggest transfer of power since the second world war—
Jim McMahon
The first world war. Does that take into account the power that has been removed from local authorities, particularly on housing and education?
Jake Berry
I assume the shadow Minister is talking about the Greater Manchester Combined Authority and the transfer of power up from local authorities to the Mayor across the country. In areas of devolution, it has been done by consensus; he was a leader of one of those local authorities that are now part of the combined authorities, so I guess he would support that.
This debate is very important when looked at in the wider context of English devolution. The Government will shortly publicise their devolution framework, in which we will talk about what devolution should look like in the rest of England and give a clear roadmap for devolution across England, in compliance with a Conservative party manifesto commitment.
In London, there is an opportunity to talk about how we might improve the scrutiny and accountability of the Mayor of London and of Mayors in general. For inspiration, my hon. Friend could look to the mayoral model put in place by our Government in Manchester, where rather than having an additional tier of GLA governance, it is a combined authority, with representatives—the leaders of those borough councils—working with the Mayor in a collaborative partnership, but with a strong voice for their borough in that relationship. London should look at new solutions like that, on the proviso that they are always ground-up and locally supported.
Jake Berry
Yes, I am. I hope that is helpful, and I congratulate my hon. Friend’s new council leader on winning the election.
Another reason why it is appropriate for boroughs to lead the conversation about whether the existing GLA boundaries and structures are appropriate is simply that they have not changed since the 1960s. Our world has changed very much since the 1960s. A lot of the debate about English devolution is driven by a wider debate about the future of our country after Brexit. There is an ambition and desire out there for what I refer to as “double devolution”—taking a very European idea of subsidiarity and embedding that in the relationship between local government and national government.
The Government have committed to come forward with the devolution framework to try to stimulate the debate about what devolution should look like across England. As we start with year zero of creating a new, ambitious, globally competitive country, what part can the constituent local authorities—in some cases, parish councils and unitary authorities in our local government family—play in driving forward our nation’s ambition?
I will touch on some of the specific points made by my hon. Friend in his excellent speech. When he started speaking, I wrote at the top of my piece of paper that the people of Essex want to take back control, although he got round to saying that himself. That plays into a much wider debate we should be having about people’s identity. As a proud Member of Parliament representing Lancashire, I am aware of the strength of the Lancashire identity, which in many ways was undermined in local government reform when we lost the city of Liverpool, the city of Manchester and large parts of Greater Manchester. There is a real role for Members of Parliament and local councils in reinforcing those historic county boundaries.
My hon. Friend spoke passionately about his identity as someone born in Essex and representing Essex but having been sucked into the London agglomeration in some way. I feel similarly about Lancashire. Of course, Lancashire is one of the few county palatine boroughs in our United Kingdom, having been awarded the status by the King for protecting England from marauding Scots—something we occasionally see today. We in Lancashire are deeply proud of that county palatine status. We love our friends north of the border, with whom we have a great relationship, but we also like to be cognisant of our history.
My hon. Friend was edging towards saying, without realising it, that the GLA may be better represented or reformed with a Manchester model: a combined authority with a strong voice for the boroughs. The late, great Tony Wilson, of Manchester music industry fame, said:
“This is Manchester—we do things differently here.”
Where Manchester leads, many parts of the country can follow. The GLA was set up in 2000, and the debate has simply moved on. That is why the Government, and I as a constituency Member of Parliament, see this as a welcome time to debate the future of the GLA.
Jim McMahon
The nearest equivalent organisation is London Councils, where council leaders across the Greater London area come together. Could that organisation be given combined authority status, with powers similar to Greater Manchester’s and the Mayor possibly taking the chair? Is that where Government thinking is leading?
Jake Berry
If the hon. Gentleman had listened to my earlier remarks, he would have heard me say that the Government are not suggesting that the GLA should be abolished, and we are not suggesting the creation of a combined authority. That is because the Conservatives, the party of English devolution, believe that devolution works best in England when it is ground-up and locally led. It is not for Whitehall to dictate what devolution should look like in Manchester, as he will appreciate, or to dictate what the changes—if any—that come forward for the GLA should be. It is for local politicians, led by Members of Parliament having this debate, to come forward to Government with ground-up proposals that the Government will look at, as we do with all such proposals.
Jim McMahon
I am sure the leaders of Yorkshire will be delighted with the spirit of that. Does that mean that we are heading towards a one Yorkshire devolution deal?
Jake Berry
I think the leaders of Yorkshire are always delighted when they hear me talk about devolution. As the hon. Gentleman knows—I do not want to be drawn too far from the subject of the debate—the Government have been clear: we remain committed to the implementation of the south Yorkshire city region deal, known as the Sheffield city region deal.
As someone who has lived in Sheffield, I am keen to see the near-£1 billion of Government money go into that economy. In that city there is the bizarre situation where four Labour authority leaders cannot agree collectively about what power they should have to release that money. The hon. Gentleman spoke of the challenges faced by boroughs across England in local government spending, and it strikes me as a little bit odd that when the Government are saying to four Labour boroughs, “Here is £30 million a year that we would like to give you to invest in growing your economy,” those Labour boroughs are more interested in fighting each other than in drawing that money down. However, we are straying.
Jake Berry
I will not, because we are straying a long way from the subject of the debate and I want to conclude my remarks.
This has been an interesting debate. I welcome the lead role that my hon. Friend the Member for Romford is taking in driving the debate on the future of the GLA and the mayoralty, and the relationship between the two. There has been no change since the 1960s. Although we cannot guarantee that any change will come, if he can command a broad coalition of boroughs across London who would like to talk to the Government about what change could look like, we will welcome those discussions.
Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill
Jim McMahon Excerpts(6 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rishi Sunak
I agree that land banking should be looked into. The hon. Lady will be aware that my hon. Friend the Member for North Dorset (Simon Hoare) is currently looking at that issue. Interim findings have been published and more findings will be coming out shortly. I hope that she will be happy to wait for the findings of those reports.
Nor are we proposing to change any other arrangements for charging premiums. It will rightly remain a matter for local authorities individually to decide whether and what premium to charge. In making these decisions, local authorities should of course consider local circumstances, as we have discussed, as well as the guidance issued by the Government.
It is right that we target particularly the homes that are empty for excessively long periods in this way. To be sure, they are likely to be few in number— potentially 11,000, as we heard from my hon. Friend the Member for Walsall North (Eddie Hughes)—but where they exist, they can indeed be a nuisance and a blight on their community. Such properties may even become sites of crime and antisocial behaviour. It is right that local authorities are equipped with greater powers in these difficult cases, where a 100% premium may be ineffective. We are proposing that these higher premiums come into effect slightly later than the original measure, which was announced at last year’s autumn Budget. This will give homeowners sufficient notice of the change. The 200% premiums will come into effect from 1 April 2020, and the 300% premiums a year later. The original proposal, of which people have had good notice, will come into effect from 1 April 2019, as planned.
We recognise the crucial importance of ensuring that premiums are applied fairly. That is why in 2013 the Government published guidance reminding local authorities to take into account the specific reasons a local property is empty, as indeed we heard from my hon. Friend the Member for Harrow East (Bob Blackman). In the light of this amendment, I can confirm that the Government will take a fresh look at the guidance with the aim of publishing revised guidance ahead of the introduction of the 200% and 300% premiums. This refreshed guidance will be subject to consultation, of course, and we will welcome the opportunity to benefit from the experience of local authorities, council tax payers and others when the time comes. In particular, we are keen to ensure that the guidance clarifies that premiums must be applied with due consideration to issues facing low-demand areas and cases of hardship. We expect to revisit the wording of the guidance to set out clearly the Government’s expectation that premiums are not applied where homeowners can demonstrate that their properties are genuinely on the market for rent or sale and appropriately priced.
Another area we expect to consider is cases where homeowners, as my hon. Friend the Member for Harrow East noted, are struggling to complete or afford renovations that are necessary before the property can be occupied or sold on and where they can demonstrate progress and hardship.
I am delighted to bring forward this amendment, which has been termed the escalator amendment. I am grateful to all colleagues, the Select Committee and partners in the rating agencies for helping to get this amendment and this Bill to the House. By strengthening the incentive for owners of long-term empty properties to bring them back into use, this amendment will surely come as good news for local government, for families seeking a place to live and for the affected local communities as a whole. I commend it to the House.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
It takes a very good education to be able to talk at length without saying much at all.
We are at the end of a process as we reflect on the Lords amendment, which I should say is entirely in line with Labour’s manifesto. If anything, it could have gone much further. While the Lords have suggested a 10-year period regarding the charge on empty properties, the Labour manifesto proposed that after a year, because we recognise not only that there are lots of people on the housing waiting list and many people who are homeless—sofa-surfing and on the streets—but that these properties are often a blight on their local communities. It is right that the owners of the properties are held to account, and a charge is one way of doing so. Of course we welcome the amendment, but we would have liked it to go much further.
We have heard in Committee and in the Chamber that the staircase tax was about listening to the interests of business and how the business rates system was adversely affecting them, but it is slightly odd that of all the issues that businesses are raising when it comes to business rates, this is the sole one that has been picked out for this place to address. There is absolutely nothing about the condition of our high streets and town centres, and nothing about business rates’ impact on our pubs. There is no recognition that while we have rural rate relief for the last pub in a village, council estates are not given the same luxury for the last pub on the estate. Businesses are raising plenty of important issues.
Fundamentally, we see with rates the same thing that we are seeing with council tax: we are incrementally putting more and more pressure on what is a diminishing resource in many places. We have seen that with the revaluation, where the value shifted to London and the south-east, and certainly away from my region. The Conservative party has been in power for 10 years, through the coalition and more recently with the support of the Democratic Unionist party, and the housing shame in this country is a national scandal.
Kevin Hollinrake
The hon. Gentleman says that the Government are doing nothing to tackle some of the issues on the high street. Is he not aware of the Government inquiry that is led by Sir John Timpson on the difficulties the high street is facing and what we should do about it? Is it not a sensible starting point that we gather some evidence before we decide what we should do?
Jim McMahon
If all we had was time, we could carry out an inquiry and a review every few months, but the fact is that that leads to almost no change. Our tax base system is getting to a point where it will not be fit for purpose. How can we have a situation where someone’s ability to get adult social care in later life will be predicated on their local authority’s ability to raise money from a diminishing base of council tax and business rates, thereby putting more and more pressure on the communities that can least afford it? How can it be right that a child’s ability to get the protection they need will be based on house values in 1991 when the Government walk off the pitch and end revenue support grant completely? How can that be fair?
Kevin Hollinrake
The hon. Gentleman is being generous in giving way. Will he set out his party’s policies on rejuvenating the high street and replacing business rates?
Mr Deputy Speaker
I know. I have allowed Members to generalise. I do not want to narrow down what the shadow Minister has to say. I allowed the Minister to spread his wings—perhaps I was a bit too open in allowing that. I do not want to concentrate on just one area.
Jim McMahon
Thank you, Mr Deputy Speaker. I will not abuse the purpose of the debate; I will stick to the Bill and the Lords amendment.
Many of these issues on council tax and business rates need not be party political. Most people recognise that high streets and town centres are at a point where they cannot take much more pressure. Most people recognise that council tax is taking on a disproportionate burden to fund local public services and, increasingly, people services, too. These are not party political points; they are self-evident when we see the condition of council budgets, and our town and city centres and high streets.
I have offered from this Dispatch Box to sit down with the Minister and work out where there is common ground and where we ought to be working together. I am afraid that all these offers of visits to constituencies around the country are taking away time that could be spent in this place working through some of these complex issues, in which have been ignored for so long.
Clearly, we are not going to oppose the Bill, in which very sensible steps are being taken. We support the Lords amendment, so we do not suggest opposing that either. However, we do want a bit more courage from the Department. There is a brand-new Secretary of State in place, who I hope has more access to the door of No. 11 than previously and can finally get a conversation about how we can properly fund local government services. We ought to be working together to find a long-term, sustainable solution to ensure that every man, woman and child right across the country gets the public services they need and deserve.
Oral Answers to Questions
Jim McMahon Excerpts(6 years, 4 months ago)
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James Brokenshire
My hon. Friend rightly raises the issue of releasing public sector land, which is a priority for this Government. The land for homes programme aims to release centrally held land for 160,000 homes over the coming years. We are also supporting local authorities to release land for a further 160,000 homes.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
We have all seen the shocking impact of police cuts and rising crime, but that has to be put together with real-terms cuts of 59% to crime reduction, 85% to community safety and 33% to CCTV monitoring, plus very deep cuts to youth services and community development. Does the Secretary of State believe that any of those cuts have had an impact on the increase in crime and antisocial behaviour?
James Brokenshire
Yet again, Labour fails to understand the reason why we have had to make savings—because of its public service delivery failures when in government. Steps such as this Government’s troubled families programme are about preventive work, as we heard earlier, and they are having an impact on our communities.