English Devolution and Local Government

Lord Beamish Excerpts

Wednesday 12th February 2025 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

Well, it very much seems that Cumbria is our happy place this afternoon.

I worked very closely with the politicians in Cumbria to get to where we are and am very pleased to see what they are doing. The noble Lord is quite right about local people taking decisions. The Government set an overall framework around these things, but this is absolutely right. Economies are different in every area and their needs, in terms of skills and training and infrastructure to support those economies, are different across the country. Therefore, it is very important that those decisions about strategic growth are taken locally. I agree that it is time that we got those powers, and the funding to enable that, out to the areas where they can do the best job.

[Lord Beamish (Lab)]

My Lords, does my noble friend the Minister agree that the noble Baroness who speaks on behalf of the Conservative Party has a short memory? It was the last Conservative Government who held a gun to the heads of local councils, withholding funding unless they had a devolution deal. On finance, they not only cut the budgets in local government by 30% but fixed the system to move money from poor areas to rich areas—confirmed by Rishi Sunak in his leadership bid. Debt was encouraged by the Government at the time; getting into speculative development to plug the hole in local government finance. Does the Minister also agree that there are success stories in unitary councils, one being Durham County Council, which came into being in 2009? It abolished seven inefficiently led local district councils which, if they had still been in existence, would have gone by the by because of austerity.

[Baroness Taylor of Stevenage (Lab)]

I thank my noble friend. I very well remember that speech from the former Prime Minister. We have already taken some steps during this year’s spending round to switch the funding formula back to where the need is most in our country for local government. We have put additional money into key areas such as special educational needs and adult care services. We made a further announcement yesterday about more funding for affordable housing, particularly to improve the quality of temporary and emergency accommodation.

In the spending review in the spring, we will do more to shift the balance back so that the spending review for local government will follow the needs in local areas. As we do that from one side, we also have mayors and unitary councils and strategic approaches; as each part of the country begins to grow, everybody will benefit.