Local Government Finance Bill

Debate between John McDonnell and Helen Jones

Wednesday 31st October 2012 Commons Chamber

[John McDonnell (Hayes and Harlington) (Lab)]

Many hon. Members are already facing in their constituency surgeries people who are on the edge. Those people have fallen behind with small amounts each week, and are then faced with arrears and liability orders. Then the bailiffs arrive, and there is an additional charge of £120 to the local authority, or up to £200 for the bailiffs’ costs. There is physical intimidation by bailiffs. This supposed reform will increase that on a scale we have not seen before.

[Helen Jones]

My hon. Friend is entirely right. Many of us will have seen in our surgeries what is beginning to happen to some of the poorest people in our communities. I have seen people crying in mine, either because of what they face now, or because they know what is coming in April but do not know how they will cope. Many of those people are working—they are going out to work.

Local Government Finance Bill

Debate between John McDonnell and Helen Jones

Wednesday 18th January 2012 Commons Chamber

[John McDonnell]

I feel a bit like Banquo’s ghost in this debate because I was chair of finance on the Greater London council, whose expenditure tipped Mrs Thatcher over the edge and into nationalising the business rates. There are real problems with the complexities of the Bill, as set out in the briefing from London Councils. It is difficult for individual Members of Parliament and individual local authorities to work out the implications for one’s area. Although we cannot receive witnesses on the Floor of the House, as the Deputy Speaker said, the Government have introduced a procedure whereby we can pause a Bill to enable us to undertake further consideration and consultation with the relevant interested parties. Perhaps the Government could consider that at some point during the day. We might want to pause the Bill and come back to it later, after more detailed discussions with interested parties.

[Helen Jones]

I am grateful to my hon. Friend for reminding us of two things: that a Conservative Government nationalised business rates and the idea of a pause. The Government are in such a mess with most of their legislation that the whole lot could probably do with a pause while they rethink.

Let me revert to the uncertainty for local authorities. They have made it clear that they are concerned about the short time they will have, following the passage of the Bill and the regulations that go with it, to make changes to their systems. London Councils said:

“All of these changes will require substantial changes to systems and processes at the local level, and we are extremely concerned that not enough time is being allowed for all of these policies to be properly thought through and implemented.”

I could not put it better myself.

Local authorities are being asked to cope with not only changes to non-domestic rates, but the localisation of council tax benefit at the same time. That will require new IT systems, which are unlikely to be ready, and more changes to local council revenues.