Local Government Funding

Jo Platt Excerpts

Tuesday 15th January 2019 Westminster Hall

[Jo Platt (Leigh) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Walker. I declare an interest as I am a vice-president of the Local Government Association. I congratulate my hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill) on securing the debate. I have the enormous pleasure of co-chairing Labour Friends of Local Government with my hon. Friend. I hope that the group will use opportunities such as this debate to shed light on the funding realities that councils face.

As a former councillor, I know at first hand the enormous pressures that councils face. I became a councillor in 2012, just as the austerity measures were about to be implemented. In 2014, I was appointed to the cabinet with the children and young people portfolio. It was not an easy time. Owing to the cuts, some difficult decisions had to be made. One included Sure Start. I was adamant that we were not going to lose our much-valued Labour policy, but I knew that changes were needed to ensure its survival. Those difficult decisions are made every day by councils, but they do not often receive the same publicity and attention as the decisions we make here, despite the enormous consequences for our constituents’ lives.

The coalition Government of 2010 knew that. They knew that if they heaped responsibility on to local authorities without the funding to deliver, councils would take the blame for cuts. There have been budget cuts of £160 million to the budget of our local council alone. That means that every year, £160 million has been taken. It would have provided services that we rely on. The £160 million has been found from libraries, roads, bin collections, social care and children’s services. Those are the stark decisions that councils are forced to make, and they all have far-reaching consequences. To put the challenge into perspective, by the end of the year, local authorities will have lost 60p in every pound from the funding that Government used to provide.

There is no light at the end of the tunnel. The Government want councils to be more and more self-sufficient, which means there will be less in grants from Government. Under the Tory proposals, areas less able to raise council revenue will have less to spend. Areas with the highest demands and council pressures will not have the budgets to cope. It is likely that in areas with the least pressures there will be council tax reductions. The Government tell us to trust them on the funding formula that we have yet to see, but with their record how can we possibly trust them?

Such pressing challenges are the reason why my hon. Friend the Member for Birmingham, Edgbaston and I established the Labour friends of local government group last year. It brings together councillors, MPs and stakeholders to call out the Government for their recklessness, and so that we can support one another and share ideas on how hard-working Labour councils can continue to deliver quality services despite Tory austerity. Most of all, we came together with one united message: hard-working Labour councils are not to blame for austerity and we have a duty as Labour MPs to make that crystal clear.

Councils are critical to our constituents’ social mobility, and to boosting young people’s life chances, but the Government’s contempt for local government, which is shown in their underfunding and under-resourcing, is restricting the economic and social transformation that town economies such as Leigh desperately need. I welcome the debate as an opportunity to highlight the damage caused from Westminster by Tory handling of local government, and the enormous challenges that the next few years will present to councils. We desperately need a fair funding settlement for councils that will not just give them the bare essentials to cope, but will utilise our incredible councils to get the best out of their areas.

[Several hon. Members rose—]