Julie Elliott
Main Page: Julie Elliott (Labour - Sunderland Central)Local Government Funding: North-East
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Julie Elliott (Sunderland Central) (Lab)
I congratulate my hon. Friend the Member for Darlington (Jenny Chapman) not only on securing this debate, but on her moving speech that set the scene of the reality of life in north-east.
Due to the Chancellor’s cuts, local government funding will drop by a quarter in real terms by 2020. I will not go through all the figures again, but the Prime Minister’s area of Oxfordshire will see a funding increase, as will Hampshire and Surrey. The disparity in funding between southern Tory areas and northern Labour areas represents the most blatant political manoeuvring that I have seen or read about in the western world. In succeeding to buy off potential Tory rebels with the transitional pot of money for rural areas, the Government are hitting my constituents, and those of my hon. Friends, very hard. Sunderland has had to make savings and reductions totalling £207 million since 2010-11, and it is projected that it will be required to make further reductions totalling £115 million by 2020. That is a total of £322 million over a 10-year period. Given that the council’s gross budget was £784 million in 2010-11, the reductions equate to 26% to date and 41% by 2020 when compared with the starting budget.
The cuts will be exacerbated by two elements of the local government finance settlement. The first is business rates. My hon. Friend the Member for Stockton North (Alex Cunningham) outlined the reality of the difference in what business rates can raise, and I am still waiting for a Minister to explain to me and my constituents how that will be done in a fair and reasonable manner. The TUC’s Frances O’Grady said that
“by devolving business rates without any national safeguards, regional inequalities will get wider”.
They will. Adult social care is the other area, and it is a massive problem under this regime. Sunderland City Council has lost £207 million from its budget in the past six years and is braced for further cuts of £115 million by 2020.
I wonder what the Minister can say today. I wait with bated breath. The political shenanigans of the budget settlement will bear heavily on the people of the north-east, the people I am proud to represent as a Labour Member, and the people I care about. The Opposition will not let that happen without a fight and without exposing exactly what this Government are doing.