Local Government Finance Bill (Fourth sitting)

Kevin Foster Excerpts

Thursday 2nd February 2017 Public Bill Committees

[Justin Tomlinson]

That is exactly the enthusiasm and innovation that we need to unleash across local authorities. I have every faith that our elected local authority leaders will seize the opportunity with exactly the same enthusiasm as my hon. Friend, taking advantage of it to deliver extra income and jobs.

[Kevin Foster (Torbay) (Con)]

Would my hon. Friend be interested to hear that Torbay Council is looking at a town centre regeneration scheme around Tor Hill Road in part of my constituency? They are bearing in mind the ability not only to get a commercial return on investment but to retain the business rates.

[Justin Tomlinson]

I am greatly encouraged. I had a gut feeling, based on what the witnesses said on Tuesday, that this was a great policy; I now feel even more certain. The quicker we can introduce this, the better.

Following on from the point about town centre regeneration, let me say why this policy will make such a difference. The Mary Portas report, which looked into the decline of traditional high streets, highlighted the point that one of the biggest problems is that local authorities continually increase car parking charges because they generate significant revenue. Unsurprisingly, with increased car parking charges year on year, town centres started to wilt and business rate income fall away. Local authority leaders recognised that, but they needed short-term ways to access money. Maintaining 100% of growth would provide an incentive to cut car parking charges, which hon. Members will be delighted to know Swindon Borough Council did; it reduced charges to £2 for four hours. Anybody who has free time and wishes to spend money in Swindon is most welcome. Unsurprisingly, footfall went up, and we will start to see a boost and regeneration.

--- Later in debate ---

[Jim McMahon]

It would be ludicrous if the paper on distribution, which we are waiting to see, resulted in Westminster, which has had every advantage, keeping 100% of £2 billion. I would be amazed if any Government would be that stupid. I know that the Minister would not allow that to happen, because the kick-back from Conservative authorities would be as loud as that from Labour authorities. It strikes at the heart of fairness. It cannot be right that the seat of Government, with so many Departments involved in the payment of business rates into the system, has nothing to do with the actions of Westminster City Council. History shows that we have reached this point because that is how the UK Government have developed over time.

[Kevin Foster]

The hon. Gentleman was talking about examples of delayed discharges and particular councils. The new integrated care organisation in Torbay has produced some of the lowest levels—possibly the lowest level—of delayed discharges, despite the challenges posed by Torbay’s demographics. Does he think that that model could be extended elsewhere?

[Jim McMahon]

I absolutely believe that there is more to be done to bring together health and social care budgets into one pooled pot for the local area, with local government being given the responsibility for teeming and ladling and being held to account by the public for that. That is absolutely the right way to go. Only by doing that can we break down the institutional silos.

To be fair, the NHS has not reformed in the same way that local councils have had to reform. Joint working could benefit both parties, but we have to be honest about the transition required to do that, and accept that any pilot that has enough money and energy thrown at it can be made to work. We need to consider whether the pilot can be mainstreamed. Different people may approach everyday activities in different ways, so the two systems will have to run alongside each other for a certain period, with the inherent demand continuing as the new system kicks in.

Councils have to be able to see that change through. It could take a five to 10-year project to see through the cultural change to systems and processes, staffing terms and conditions, and everything else that would need to be looked at to ensure that it works. We are seeing that with troubled families. The Government do not have the long-term vision or appetite to see through genuine cultural change in how we deliver public services. If they do not see a saving after year one, two or three, the money is pulled and we start from scratch with another pilot. I absolutely believe in reform, but it has to be sustained reform over a period of time, and we have to be realistic about the amount of time it will take.