(12 years, 2 months ago)
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My hon. Friend underlines the modest case that the fire chiefs have been making, which many Labour MPs have been prepared to back. Indeed my hon. Friend the Member for Houghton and Sunderland South did so today. The scheme does entrench the unfair pattern that we have seen in years one and two, but, from the fire chiefs’ point of view, it recognises that the Fire Minister, unless he is going to renegotiate the settlement with the Treasury for years three and four, will have to find cuts worth more than £130 million in the next couple of years.
I add my voice to the praise that has been heaped on my right hon. Friend for the work that he has done on this subject. On the question of unfairness and the difference between the six metropolitan districts and the rest, does not the Merseyside case make that point very well? We have one of the highest incident rates, yet we also have one of the highest negative funding differences. That illustrates the point he is making. We have to be selective, but we also need to bend the rules a little towards those who are in the greatest difficulty.
My right hon. Friend is right. There is a pattern of deep cuts, especially in the six metropolitan areas, and it is strongest in poorest areas with the highest number of fires; urban areas in which the risk of fires is greatest; metropolitan brigades that have done the most over the past decade to become more efficient; and the six fire and rescue authorities that have done the most, and do the most, to cover other areas in cases of national emergency such as flooding, terrorism and major incidents. If the pattern of years one and two is repeated in years three and four, our areas together will be looking at axing an extra 1,000 firefighters, 150 extra staff and another 40 fire engines.
We worked with the Minister’s predecessor very closely over the past nine months. I pay tribute to the hon. Member for Bromley and Chislehurst, his officials and the chief fire officer for the way in which they have worked. I also pay tribute to the chief constables, their staff, the unions and the members of the fire and rescue authorities in the six metropolitan areas.
In the past nine months, we have given the Government fair warning, and the Minister should take this as a final warning. He is close to having to make a decision. If the cuts fall in the same way, so deeply and so unfairly in the metropolitan areas, there will be fewer firefighters, fire engines and fire stations. Bluntly, more people will die.
Let me offer a solution to the Minister—we argued this with his predecessor—and encourage him as a fresh Minister to take a fresh look and learn from the Home Secretary. This year, each of the 43 police authorities have had an even cut in their budgets of 6.7%. Last year, each and every one of them had the same cut of 5.1%. and it was done through the floor-damping mechanism. Exactly the same policy is at the Minister’s disposal to apply to the 31 fire and rescue authorities. It would be more equitable. It would still be tough, and it would be especially tough in those metropolitan areas that have some of the highest need, the highest risk, the lowest council tax base and the weakest levels of economic growth but, none the less, the fire chiefs are prepared to accept that and go with it.
Finally, will the Minister take a fresh look at how fire and rescue authorities are treated in the future? He should adopt the same approach to those authorities as has been taken to the police. In the middle of July, his Department produced a big document on the consultation on business rates retention. It confirms that in future, police authorities will be funded outside the new business rates retention scheme. The document says that the reason for doing so is that it is recognised
“that the police have limited levers to influence growth.”
Exactly the same argument applies to the fire and rescue services. The fire service, which is also an emergency service, has exactly the same need for stable and predictable funding. I urge the Minister to take a leaf out of the Home Secretary’s book, for years three and four, and for the long term. Let us put the funding of fire services on a proper footing—and a fairer footing—for the future.
(12 years, 9 months ago)
Commons ChamberThe hon. Gentleman is right. That underscores the point that he and others made earlier: to some extent, we are taking a leap in the dark. Several hon. Members have said that one of the difficulties with local government finance is that, when you change it, the impact is unpredictable. I do not need to rehearse the history of the poll tax to show that. The position that we are considering is exactly the same in that it is unpredictable and volatile.
The effect is uncertain, but it is possible to make some projections. In my authority of Rotherham—a member of the SIGOMA group—if the pensioners are protected in the way in which the Government clearly believe that they will be, everyone else who is currently entitled to support, including many who work but get low wages, and therefore require and have a right to that support, will take a cut of not 10% but 19.5%.
My right hon. Friend makes a strong point, which I hope to tackle shortly.
Currently, many people, especially young people, have to accept jobs, often well below the level of their qualifications, on a minimum wage, at the same time as having to forge an independent existence from their families. I fear that they, or young couples with families, in which the principal earner is on a low wage, will be most affected and put in an impossible position, unless the discretionary powers that the Bill describes are spelled out clearly so that the outcomes cannot be arbitrary. We deserve to know at least what the Government are planning, and that should appear on the face of the Bill. Who are the classes of people? There are vague descriptions in schedule 4, but nothing is spelled out clearly.
I said I wanted to talk about Knowsley and the Liverpool city region. I am indebted to the director of finance in Knowsley for the impartial briefing he has given to me—it is a Labour authority, but he has provided advice on the basis of his financial experience and qualifications. His view is that the 10% cut combined with pensioner protection means that the benefit of other claimants will have to be cut by 18%. If there is provision for others in a local scheme—they could be singled out or ring-fenced—that 18% cut could increase to as much as a 100%, because people could be excluded altogether, as the hon. Member for Poole said.
(12 years, 9 months ago)
Commons ChamberIt is a great pleasure to follow the hon. Member for Cities of London and Westminster (Mark Field). I sat through his speech last week on the first day in Committee, in which he pleaded the case for Westminster. I found it difficult to sleep that night, given the strong concerns that he raised about the consequences of the Bill for his constituency. On reflection, I decided that it might not be that bad really.
I have some sympathy with the Minister, with the amendments and, indeed, with the Bill. Local government finance generally is so technical that it reminds me of the Schleswig-Holstein affair. People think that they understand it, but many years later they have forgotten it. Some 25 years ago, when I was a local authority finance chairman, I actually understood multiple regression analysis, but if anyone were to intervene and ask me to explain it now, I would struggle.