Local Government Finance (England)

Julie Cooper Excerpts

Wednesday 10th February 2016 Commons Chamber

[Julie Cooper (Burnley) (Lab)]

I well remember the Prime Minister in 2010 speaking to the country and declaring that we were all in this together. That had a ring of fairness that resonated with the British people. He went on to say that those with the broadest shoulders would bear the greatest burden. Sadly, those were just words and were never backed up with action. My constituency is one of the least affluent areas of the country, and despite that, since 2010, Burnley Council has seen its funding cut by a staggering 54%. Cuts of that magnitude have also been the order of the day at Lancashire County Council. As if all that is not bad enough, during the same period other, more prosperous authorities have had their funding increased, which demonstrates an outrageous absence of fairness. The people of Burnley have known since 2010 that we are certainly not all in this together.

As the former leader of Burnley Borough Council, I am no stranger to belt-tightening exercises, and I can tell the House that it was exceptionally difficult at times. The Minister for Housing and Planning may well remember meeting me on more than one occasion when I pleaded with him to grant transition funding for Burnley. He will, no doubt, also remember the long and tedious process involved for Burnley and other authorities to secure that most essential funding. Having negotiated numerous hurdles, Burnley Borough Council demonstrated efficient transitional activity. It was, and is, an efficient council.

When this year’s provisional settlements were announced, councils across the country were, unsurprisingly, angry about the cuts to their budget, but it seemed like the Secretary of State was listening when he announced an additional £300 million over the next two years. We welcomed that, until we saw where the funding is going to go. Will it be distributed to those areas most in need? Of course not. Given this Government’s record, we ought not to be surprised that more than 80% of that additional funding will go to the most prosperous authorities.

Since 2010, the five least deprived authorities have, overall, had their budget cut by £7 per person, while, shockingly, the five most deprived authorities have had their budgets cut by more than £336 per head. Will the Minister explain what funding formula he has used to arrive at this latest settlement? I note that Burnley is to endure a further budget spending cut of 4.8%, while the more affluent areas of South Ribble and Uttlesford are to enjoy budget increases. So, while Burnley will have its budget cut by 4.8%, Uttlesford will have its budget increased by 6.4%. I have no problem with the people of Uttlesford, but I do with the lack of fairness.

Did those councils have to go through a lengthy process of targets and assessments to access that increase? Of course not. A word in the Prime Minister’s ear, it seems, and the budgets are increased. What message does that send to the people in Burnley? Has the Minister stopped for one minute to think what the impact of the cuts will be in Burnley? Does he even care?

The cuts will result in reduced social care services for the elderly and disabled; the closure of community centres and libraries; the loss of bus services; the loss of support for those fleeing domestic violence; and the withdrawal of services for those struggling to cope with autism. I could go on, but it is clear that the most vulnerable will carry the heaviest burden, while those with the broadest shoulders are given a bonus.

Burnley has been cheated, and I believe that these further unfair cuts will confirm to the people of Burnley and Padiham that this Conservative Government will always prioritise the needs of the richest at the expense of the poorest and most vulnerable. If the Minister were to change his mind and reconsider—

[Madam Deputy Speaker (Natascha Engel)]

Order.