Local Government Finances: London

Julia Lopez Excerpts

Wednesday 26th March 2025 Westminster Hall

[Julia Lopez (Hornchurch and Upminster) (Con)]

It is a pleasure to serve under your chairmanship, Ms Lewell. I am very grateful to the hon. Member for Leyton and Wanstead (Mr Bailey) for securing this vital debate. I requested a debate on this subject myself, so I am glad that one of us got drawn in the ballot. As an outer London MP, I am extremely sympathetic to the compelling case he makes about the disparity between the centre of the city and its outskirts.

Residents in Havering pay among the highest council tax in London and in return they rightly expect robust services. They want to see their vulnerable neighbours supported, parks and streets well maintained, and essential services working effectively. However, Havering has been under significant financial pressure for years. The root cause of the issue is an outdated and flawed local government funding formula that does not adequately reflect the changing needs of our borough.

Havering’s population has undergone significant changes in the past decade. We have had one of the fastest increases in child numbers in the country, and we have a growing elderly population. Both groups come with complex, multi-layered needs. Those demographic shifts have driven up demand for expensive social care services, but the funding formula still relies on outdated data and fails to reflect those changes, which has left Havering facing growing financial strain.

Other London councils have been able to build reserves during this period, largely because they have benefited from the same outdated formula, especially given that covid grants were allocated on that basis. That has created a disparity between inner and outer London: some boroughs have received more than they need, while others such as Havering are struggling. The Department for Education uses a much more up-to-date formula, which is why Havering has received the bulk of London’s capital funding for schools to meet the rising number of children—one part of Government acknowledges the change, yet another is a decade out of date.

I have long advocated reform of the local government funding formula to reflect those demographic shifts. The previous Conservative Government initiated a fair funding review to address the imbalances, but the pandemic stalled progress. Much of the groundwork for reform has therefore been done, and I urge the Minister to accelerate the review to bring about the necessary changes.

In recent years, Havering council has received some crucial uplifts in social care funding, which have helped it continue to deliver vital services, but the fundamental structural issues in the funding formula remain. Without a long-term solution, the situation will only worsen. To address that, in January I facilitated a meeting between Havering council and the local government Minister, Baroness Taylor. I was grateful for that meeting. As a result, the Government approved further exceptional financial support, which enabled the council to set a budget for the year. That is welcome support, but it is a temporary fix, and a lasting solution is needed. Again, that requires pushing forward with the funding formula review.

On top of those ongoing funding issues, the Government have also introduced fresh financial pressures through the Budget. One of the most significant changes is the increase in employer national insurance contributions, which has driven up the cost of social care and other essential services across the borough. Those increases are directly impacting local businesses and services, from pharmacies and GPs to critical childcare providers and high street shops. Just last week, I spoke to several high street businesses: they are facing huge business rate increases, rising parking charges and the impact of the NICs increases. Those increases are pushing customers away from our high streets and threatening the vitality of our local economy. There will obviously be an ongoing knock-on impact on the local government funding issues.

The latest local government finance settlement has provided Havering with the smallest increase in spending power since 2021, an increase essentially wiped out by the additional national insurance costs. On top of that, Havering has been excluded from the national £600 million recovery grant; no non-Labour London council, apart from Tower Hamlets, will benefit from that spend in the capital. Looking forward, the council is looking at ways to get the economy growing again locally, but that is not going to deal with the fundamental issue of the funding formula. I ask the Minister to accelerate the review so that our residents can benefit.

Grenfell Tower Inquiry: Phase 2 Report

Julia Lopez Excerpts

Wednesday 26th February 2025 Commons Chamber

[Angela Rayner]

I heard directly from members of the Grenfell community their call for the Government to introduce a national oversight mechanism. We recognise that this goes wider than Grenfell and that it is an important issue for other communities and families, such as those affected by covid-19 and the blood scandal. We are considering that in the year ahead as part of measures to strengthen public inquiries, and the Government will listen to the views of the affected families as part of that consideration.

[Julia Lopez (Hornchurch and Upminster) (Con)]

The Grenfell fire was an appalling tragedy, but it also threw a blanket of uncertainty over countless residents in many of our constituencies who are trapped in cladded properties. When I hear the Deputy Prime Minister talk about a new regulatory regime and change, I confess I feel very nervous that any changes to the regulatory regime will throw further uncertainty over those who are still trapped in their homes. Can she assure the House that any move she makes will not create further uncertainty about the standards to which buildings need to be remediated? I also highlight the case of my constituents in Harold Wood, who had their buildings assessed by a fire risk assessor who was subsequently struck off. Those people, who thought they were going to be released from that terrible stasis, are now back to not knowing where they stand, so will she please look into those concerns?

[Angela Rayner]

I hope that what we are announcing today will bring clarity to the system. One of the things that came out of the phase 2 report was about the system being disjointed. Bringing clarity will hopefully ensure that people understand what they are meant to do—what their legal obligations are—and that we expect them to do it; if they do not do it, there will be serious consequences.

I also point to the remediation acceleration plan. I completely understand that many people are still in buildings that are unsafe, which is unacceptable. That is why this Government are taking action. On the Harold Wood case, I am happy for the hon. Lady to meet the Building Safety Minister about that.

Oral Answers to Questions

Julia Lopez Excerpts

Monday 4th March 2019 Commons Chamber

[James Brokenshire]

I recognise that, over some years, Sandwell has had some specific issues in relation to its children’s services. I hope that the hon. Gentleman therefore welcomes the increase in Sandwell’s core spending power to £268.6 million. He will also know that the funding that was set out in the financial settlement underlay additional funding for social care, and children’s social care in particular, but clearly we will keep in contact with the Local Government Association and others in respect of councils’ needs.

[Julia Lopez (Hornchurch and Upminster) (Con)]

17. On Friday night, my community saw the despicable murder of 17-year-old Jodie Chesney in Harold Hill. If the Government’s serious violence strategy is to work, we need confidence that all parts of the system are adequately resourced, including councils’ children’s services and social services. What assurances can the Secretary of State give me on that front, and what conversations has he had with the Home Office to talk about these most serious of issues?

[James Brokenshire]

I am sure that the whole House will want to send its condolences to the family of Jodie Chesney, my hon. Friend’s constituents, and equally, to the family of Yousef Makki, who also lost his life over the course of the weekend. My hon. Friend highlights the appalling situation with knife crime, which has claimed too many lives. I assure her that my Department is working closely with the Home Office to look at issues of prevention and, through programmes such as troubled families, is seeking to provide preventive services. In the last couple of weeks, I have provided £9.8 million for a fund supporting families against youth crime, to help workers to intervene early to prevent such senseless violence.

Integrated Communities

Julia Lopez Excerpts

Wednesday 14th March 2018 Commons Chamber

[Sajid Javid]

I again condemn the hate crime letters that have been sent to so many people, including the hon. Lady and other hon. Members. As I have said, that is unacceptable in every way, and I assure her that the authorities are doing everything they can to find the perpetrators and punish them for what they have done.

The hon. Lady is correct in her point about giving people protection and confidence. I have seen examples of that throughout my life but especially in my research in preparing the Green Paper. In fact, the visit I made today to Waltham Forest showed me that, and it was great to hear the stories of the women I met about how they have built up confidence to meet others, to learn English and how that has transformed their lives.

[Julia Lopez (Hornchurch and Upminster) (Con)]

I welcome my right hon. Friend’s statement, and I take this opportunity to pay tribute to Dame Louise Casey and Amanda Spielman, who have taken on difficult integration issues with real guts. My right hon. Friend will be aware of my political background in the London Borough of Tower Hamlets and my serious concerns—shared by children’s services officers—about the integration and oversight of a portion of children who are home educated. While I appreciate the work and dedication of the genuine home-educating community and their right to make that choice, will he consider implementing a ban on the home education of children in households that contain a member who has been convicted of any terrorist-related or hate crime offence?

[Sajid Javid]

I thank my hon. Friend for the work that I know she did to promote integration and community cohesion as a councillor in Tower Hamlets. She raises the important issue of people abusing the valuable right to choose home education for their children, and that is why, under the strategy that my right hon. Friend the Education Secretary has set out, we will review the guidelines for home education and particularly look at those instances—there is evidence of them already—in which people claim to be home educating their children but are in fact sending them to unregistered, unregulated schools, which is clearly a bad outcome for those children.

Oral Answers to Questions

Julia Lopez Excerpts

Monday 12th March 2018 Commons Chamber

[Jake Berry]

We have increased funding in real terms, which I am sure the hon. Gentleman’s constituents, like mine, will welcome. With the fairer funding review coming up, rather than trying to score political points across the Chamber, why does he not get involved with it so that local authorities can concentrate on delivery?

[Julia Lopez (Hornchurch and Upminster) (Con)]

21. Can my hon. Friend provide assurances that the rapidly increasing demographic pressures on outer London boroughs will be fully considered as part of the fairer funding review?

[Jake Berry]

I can absolutely provide that assurance to my hon. Friend. Demographic change will be at the heart of the fairer funding review.

--- Later in debate ---

[Mr Speaker]

He is not a lawyer for nothing. I call Julia Lopez.

[Julia Lopez (Hornchurch and Upminster) (Con)]

Thank you, Mr Speaker. Following revelations in The Sunday Times about fraudulent Grenfell aid claims, what assurances can my right hon. Friend offer that financial support is going only to those directly affected by this tragedy?

[Sajid Javid]

I will not comment on the particular claims—I am sure that my hon. Friend will understand—but it is important that both the council and the police are working together on any such alleged behaviour.