English Devolution

Judith Cummins Excerpts

Monday 16th December 2024 Commons Chamber

[Jim McMahon]

I will come to some of the questions raised, but let nobody in the Chamber take lessons and lectures from the Conservatives when it comes to the perilous state that local government has been left in. Let us talk about the councils that were going bust left, right and centre on their watch. Let us talk about the fiscal discipline on 1,000-audit backlogs. What does that mean? It means £100 billion of public money that they could not account for, which held up the signing off of the national accounts. That was their legacy, and they talk about being custodians of public money—they did not even know where the money was.

What about the crisis that was building up in adult and children’s social care and in homelessness? At a time when we should have been thinking about prevention and reform and getting ahead of the problem, essentially the previous Government were making matters worse, not better. When Conservative Members talk about their legacy and being on the side of councillors, we should ask which Government it was that eroded the standards regime—its teeth were put completely to one side—leaving councillors open to abuse and intimidation and turning council chambers into hostile, toxic environments. Which Government was it that made councillors publish their home addresses when they were facing death threats?

We are doing the work now to repair the foundations of local government, giving it the funding that is needed. After a decade of year-by-year funding, we have given local government a multi-year financial settlement so that it can get its house in order as part of the rebuilding work. That is what is needed now: grown-up politics, a plan to fix the country and a plan to put local government back on its feet. But just doing that is not enough; we have to break the centralising system.

If a local authority wanted £1 million for a local project, the previous Government made them compete with their neighbouring council for a limited supply of money. The bidding wars that took place wasted millions of pounds of public money, and in the end they did not deliver on their core promise of levelling up. That was the agenda, and it has got to change. We have to change that cap-in-hand, parent-child relationship where power is hoarded at the centre.

The people queuing up to have conversations about reforming public services and devolving powers to mayoral combined authorities may not be Conservative Front Benchers, but they are Conservative council leaders who recognise that they finally have a Government on their side, willing to work in partnership to make the changes where the previous Government failed.

[Madam Deputy Speaker (Judith Cummins)]

I call the Chair of the Housing, Communities and Local Government Committee.

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I thank the Minister for the statement. It is about how we bring local leaders back to the agenda and back to the central aims that they have been complaining about over the last 14 years. It is important that any devolution reforms build trust among local people, who rely on vital services from housing and planning to social care; the Minister must keep that in mind as he is going through the reforms.

Ultimately, some councils may fear that residents’ voices in smaller district areas will be lost if they are absorbed into larger unitary authorities. Will the Minister outline how he will ensure that residents do not feel disenfranchised by losing representation in their community? Will he assure the House that, should residents choose not to adopt a mayoral model, they will not be disadvantaged?

We know that our frontline services are at breaking point, as the Minister outlined, and many will welcome the multi-year settlement, but we do not want to see adult social care and temporary accommodation—all those areas—becoming stuck between a disbanding district authority and a nebulous unitary authority. Will the Minister assure the House that there will be proper accountability during the reorganisation and that we will not see local residents and councillors left in limbo?

[Jim McMahon]

I thank the Chair of the Select Committee for that very important point about how we maintain public trust and confidence in a period of change. First, local government representations to Government will be self-organised within counties, and we will receive the recommendations and requests that come forward. We will write to all 21 areas in scope to invite them to make representations to be part of the first wave priority programme. From the conversations that we have had, we expect a significant number of local authorities to want to be part of that reorganisation. But to be clear, that is not something that we are imposing. We are writing out and local areas are self-organising, because they understand that reform and modernisation are central.

When it comes to not losing a local voice, the White Paper makes it very clear that the devolution offer is not just about creating new structures, and it is certainly not about creating new politicians. This has to be a genuine shift of power. There is a big section on community power, because a lot of people—and this may even transcend the previous Government—do not feel power in the places where they live. Quite often they feel that things are done to them and, when they see the decline of high streets and town centres, they feel that the change is going one way, and it is not good. The paper is about rebuilding local community power. Our expectation in the White Paper is clear that, regardless of the size of local authority, every council—including existing unitaries—will work out a way of getting to those local communities at neighbourhood level, and reflect in a democratic way and a public service way how best to give local people a voice.

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson.

[Vikki Slade (Mid Dorset and North Poole) (LD)]

Local councils are the backbone of our communities, delivering services to every home and business. Under the last Conservative Government their funding was slashed while their responsibilities were broadened, which means that many now face a financial precipice not of their making. As they are alongside residents, they are usually the ones in the firing line when people and businesses are distressed.

I have faced local government reorganisation before, as leader of Bournemouth, Christchurch and Poole council. Five years on in Dorset, the public are not convinced that large unitaries work for them. They do not see services improve; they just see a more remote council that has to cover a much bigger area, moving money from where it was raised to be spent elsewhere, and through an organisation that cannot understand the differing needs. Scale that up even further, and I fear that more issues and individual community needs will slip through the net.

The paper talks of mutual respect and collective purpose, but after giving mayors such extended powers and the ability to levy a mayoral tax, I wonder if the Minister can confirm what specifically will be left for council leaders. For my area of Wessex, which is Thomas Hardy country, rather than being well-known local leaders, the creation of a mega mayor is more likely to be a case of “Jude the Obscure”.

I am deeply concerned about the impact on local authority staff both now and in the future, including on their ability to move between councils to develop their skills. Councils have already rationalised staffing to make ends meet and have shared services, as was said by the shadow Minister, and they will struggle to reinvent again. What plans do the Government have to ensure that local authorities will be sufficiently funded to implement such changes, and to limit the outflow of millions of pounds to consultants to make this happen?

Turning to the role of elected members, the lived experience of these community leaders is so worth while. I am deeply concerned about the loss of districts and district councillors and the move to strategically elected members. Those people are likely to be required to travel much further and give much more of their time, making it harder for people with caring responsibilities or full-time careers to serve. The paper brings forward potential sanctions for breaches of standards, which is very welcome, but it says little about how we reset the relationship with those counsellors to make sure that the time and effort they put in is properly reflected.

The White Paper fails to say anything meaningful about the ticking time bomb of social care, and its reference to the financial crisis being faced up and down the country hints at further devolution. [Interruption.] My question is, what can the Minister do to ensure that local communities do not feel like this is a top-down diktat and can make their own decisions about the future?

[Madam Deputy Speaker (Judith Cummins)]

Before I call the Minister, I remind Members that time is at a premium, and I want to be able to get everybody in.

[Jim McMahon]

I thank the Liberal Democrat spokesperson for her question, and for her service as an elected council member for a period. I understand that there will be concerns about the move to larger unitaries, but the fact is that there is a two-tier premium that the taxpayer is paying. At a time when resources are limited, we have a responsibility to take money from councils’ overhead costs in the back office and bring them to the frontline to give people good neighbourhood services. I suspect that if people were asked, “Would you prefer the existing two-tier system or more money being directed at local public services?”, most would want the money to go into local public services. However, there is a balance here, and it is for local areas to find it.

We are very clear in the White Paper that we want to move away from councillors being perceived as back-bench. We want to reform them, essentially, as frontline councillors —as the conveners of a community, with greater power and influence and the ability to get things done.

On social care, an additional £4 billion was provided in the Budget, with the provisional settlement to be announced this week. Of that amount, £600 million is for a recovery grant to go to areas with high deprivation but low tax bases, to ensure that we rebalance fairness in the system.

--- Later in debate ---

[Jim McMahon]

I pay tribute to leaders in Cumbria for the engagement that we have had with them; I recognise that they have just been through a local government reorganisation and that there has been a lot to settle in the area. They have embraced our conversations with great maturity, and those conversations have been fruitful, but we recognise that different places are at different points. Different places have different pressures that they need to reconcile, which is why we are looking at a priority programme for the areas that will soon be ready to go. We need to get the legislation and consultation in place and make the case to the public. We accept that some areas will need longer.

On mayors, I have been here long enough to see a number of Members stand up and protest against the idea of a mayor, only to pop up a bit later as the candidate for the same position, so I say to people in Cumbria: be careful what you wish for.

[Madam Deputy Speaker (Judith Cummins)]

I remind the House that we have around 40 minutes, and around 40 Members wish to speak, so please keep answers and questions succinct.