Oral Answers to Questions
Debate between Jim McMahon and Simon Hoare(7 months ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
Working people are paying the price of the cost of living crisis, but is it not the truth that the Liz Truss mini-Budget did not occur in a vacuum? There is a pattern of the Tories shifting the tax burden on to hard-pressed households. Council tax bills have rocketed by almost £500 since the Tories came to power, on top of which Conservative councils charge residents almost £280 more than their Labour counterparts. As voters go to the polls on 2 May, does the Minister hope that they will somehow forget the council tax bombshell facing them? Or does he expect that more candidates will follow the lead of the west midlands campaign and ditch the toxic Tory brand completely?
Simon Hoare
The hon. Gentleman wins first prize in the brass neck of the afternoon competition; I remind him gently and politely about the situation in Birmingham. It is well known by residents up and down the land that Conservative-led councils are more efficient, deliver greater improvement at pace and are far more focused on delivering for their residents. Colleagues and I will take that proud record to the voters during this local election campaign, and I have every confidence we will triumph in it.
Draft Non-Domestic Rating (Rates Retention: Miscellaneous Amendments) Regulations 2024
Debate between Jim McMahon and Simon Hoare(8 months, 3 weeks ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr Vickers, and to attend the Committee this morning. I am happy to confirm that the Opposition do not wish to divide the Committee on this matter, which we believe to be technical. Very much in the spirit of the Minister, I do not propose to go into a lot of detail, but it is important to say that business rates retention is a fundamental foundation stone of many devolution deals that have been agreed. The thrust towards devolution is not just about devolving power; it is also about devolving fiscal responsibility, and enabling areas to benefit from growth in that local area. However, any system of course needs floors and ceilings, to ensure that councils can afford to run their services. That is what this technical instrument is about.
As the Minister says, there has been a delay in tabling. I accept that stray brackets and commas and zeroes play some part in this—we have all had that experience in the past—but it is a matter of fact that we are now four months on from when we expected the instrument to be tabled, so it is legitimate to ask, have there been any financial winners or losers during that time, and will the Government compensate on that basis?
Simon Hoare
I can assure the hon. Gentleman that no one has disproportionately won or disproportionately lost. This is timely. It was a singular bracket that was misplaced, rather than a pluralised bracket; I can assure him of that. Every comma was in the right place, ditto semi-colons. Nobody has had extra money that now has to be clawed back, and nobody has had less money which we then have to dole out.
Jim McMahon
That is a fundamental point and I am grateful for that early clarification. In that spirit I do not want to give advice—indeed, I am not strictly qualified to give advice to others—but I will say, in the spirit of statutory instruments of this nature, that perhaps not allowing the good to be the enemy of the perfect means that we can get through some of this process a bit more quickly and give local authorities the certainty that they need in order to ascertain their financial position.
Simon Hoare
I know this sounds bonkers, but if we had proceeded with the SI with the bracket in the wrong place, it would have led to miscalculations of the sums that we are talking about. So we made a judgment that this was not an arcane case of the perfect defeating the good; this was a rather important decision to take. We did not take it lightly, but we thought it better from local authorities’ perspective to get it right, rather than having to come back and ask for extra money, or dole out extra money, thereby sowing the seeds of confusion.
Jim McMahon
My final question for the Minister in his winding-up speech will be to ask where the Government are up to on the wider reset of business rates that the sector is waiting for.
Oral Answers to Questions
Debate between Jim McMahon and Simon Hoare(10 months ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
The reality is that more and more councils are being pushed to the financial brink. It stands as a fact that more councils issued bankruptcy notices last year than in the previous 30 years combined. Those councils were Conservative, Liberal Democrat and no overall control, but the one thing they have in common is the Conservative Government in Downing Street. The Local Government Association reports that councils face an immediate £2.6 billion funding gap. Now that the deadline has passed, can the Minister confirm how many councils have applied for exceptional financial support, and whether pressures in adult social care, children’s services and homelessness will be fully met in the financial settlement?
Simon Hoare
It is not policy for us to comment individually on councils that are seeking advice from or engagement with officials, but I am grateful to the hon. Gentleman for his question, because it gives me the opportunity to put on record that my Department and I stand ready to engage with all those councils who wish to discuss their financial circumstances. We want to make sure that we have a well-funded, professional local government sector, delivering for those people in our communities who look to them for the services that they require for their daily lives.
Oral Answers to Questions
Debate between Jim McMahon and Simon Hoare(11 months, 3 weeks ago)
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Jim McMahon (Oldham West and Royton) (Lab/Co-op)
In 2018, Tory-led Northamptonshire County Council issued a section 114 notice—as close as a council can come to declaring itself bankrupt. Since then, under this Conservative Government, we have seen a further eight councils from across the political spectrum do exactly the same. In September, the credit agency Moody’s warned that more local authorities will
“fail over the near term”
due to high inflation, interest rates and service demand. By the Government’s own assessment, how many more councils are at risk between now and budgets being set next year?
Simon Hoare
I welcome the hon. Gentleman to his place and echo the remarks of my right hon. Friend the Secretary of State; it is great to see him back on the Front Bench.
The hon. Gentleman raises an important point. Nobody is going to doubt that section 114 is a serious issue. As I have said to the Local Government Association and others, I do not think it is right for us to name and shame, point the finger or assign blame. We are intent on working with councils that have already alerted us to see what we can do to help, and on working alongside councils that have concerns to ensure they do not fall into that situation. I am not going to give a running commentary on that, save to make this pledge: we will work with those councils to ensure that they can continue to deliver for their voters.