Devolution in England
Debate between Kris Hopkins and Clive Betts
Kris Hopkins
That is certainly not my intention. My intention is to see every part of the country grow. The Chancellor has gone out there and supported the northern powerhouse, and we have gone to every corner of this country to make sure that this works. At the end of the day, however, growth will be locally led and individual areas will need to be supported in this process, but many will seize the opportunity to grow their local economies.
We have heard some good contributions from Members and I want to comment on them.
Mr Betts
I read out a quote by the Prime Minister, which I presume the Minister agrees with, about proposals for increased fiscal devolution in Wales. So far, he has not talked about fiscal devolution at all. The Prime Minister said:
“That means those who spend taxpayers’ money must be more responsible for raising it. This is devolution with a purpose”.
Does the Minister agree with that in principle, and if so, if it applies to Wales, why does it not apply to Manchester, London or Sheffield?
Kris Hopkins
It applies to England at this moment. We have given local authorities the ability to raise money, to drive their local economies and to build more houses and be rewarded for doing so. The decisions associated with that expenditure are now being taken at local level.
The tone of the debate has been really good, despite one or two glitches in some contributions. On the whole, people realise the enormous power that local government has and the massive contribution that it makes to society and to delivering public services. The report produced by the hon. Member for Sheffield South East recognises that the movement towards more decentralisation and ensuring that people at local level are more accountable is the way forward. That is certainly the desire of this Government.
My hon. Friend the Member for Folkestone and Hythe (Damian Collins) talked about a northern powerhouse, and about his desire to see his county step up and seize the opportunity for more devolved powers. He was right to say that. In contrast, the hon. Member for Corby (Andy Sawford) seemed to believe that it was up to central Government to come up with a plan for a local area. It is not about that. It is about groups of local authorities having the confidence to follow what they see as the route to economic growth. It is about their making those choices and coming to us. Our door is open to the authorities that make those choices.
My hon. Friend was right to recognise that the move from the better care fund towards more integration in our social care is extremely important. There is an issue with demographics, given the enormous growth in our elderly populace, and we have a responsibility to ensure that we deliver quality services efficiently. He also talked about waste, and about community housing policy. Those are two key areas in which local authorities can make decisions.
The hon. Member for Blackley and Broughton (Graham Stringer) brings an enormous amount of knowledge and expertise to the House and I congratulate him on his 30 years of public service. He has faith in local government; in fact, he has more faith in local government than he does in central Government. I, too, have huge confidence that local government can deliver what is needed. He mentioned the use on the radio of the term “grubby hands”. I, too, thought that that was appalling. People working in local government give up a huge amount of their time to make a contribution, and they do so out of choice. I applaud the work of many local authority leaders and councillors, and I think that the BBC should apologise for that comment.
The hon. Gentleman was right to observe that the health deal was negotiated—and will be negotiated further—with local leaders. I have confidence that the democratic process will win, and that people will seize these opportunities. The hon. Member for Wigan (Lisa Nandy) has pointed to a lack of involvement by local people in that process, but the councillor who is the leader of Wigan is a local person, and those 10 people came together in a pragmatic way—as my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) said—and made a choice about this. We will also put in place primary legislation to ensure that there is a directly elected representative. The journey in Manchester has not happened just in the past four weeks. It is not something that has appeared just before the general election. It has been going on for a decade-plus.
Local Government Finance
Debate between Kris Hopkins and Clive Betts(9 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Clive Betts (Sheffield South East) (Lab)
The Minister says that local government has to bear its fair share of the cuts. Does he accept that according to the Office for Budget Responsibility—the Local Government Association produced these figures for us—if we exclude spending on schools and public health, which local authorities cannot affect, in 2009-10 local authorities represented 19% of public expenditure? By 2015-16, it will represent 16%. In other words, local government has surely borne more than its fair share of cuts. It has had more cuts as a percentage than the rest of central Government services.
Kris Hopkins
I do not have those figures, but what I will say is that I recognise that local government has had to make a substantial contribution to driving down the deficit left by the previous Administration. It is important that we recognise that local government has responded in an extremely positive way to the challenge we have placed before it.
During the consultation period, which closed on 15 January, my ministerial colleagues and I met a number of local authorities and representative groups. I also led a phone-in discussion, with more than 100 authorities participating. In addition, the consultation received numerous written responses. We considered very carefully the views of all those who commented on the provisional settlement. On 3 February, we laid before the House a local government finance report which confirmed our proposal for the settlement for 2015-16 as announced. We also confirmed our proposal that the council tax referendum principle for 2015-16 will be set at 2%.
I recognise the time and effort that those responding to the consultation—councils, in particular—have given in submitting detailed and considered comments on our proposals. As I said, we listened to those views carefully. In doing so, we recognised that councils asked for additional support. As a result, our announcement on the final settlement for 2015-16 included provision for a further £74 million to support upper-tier authorities, including to help them to respond to local welfare needs and improve social care provision.
Local Government Finance
Debate between Kris Hopkins and Clive Betts
Kris Hopkins
I congratulate Rugby borough council on its excellent work. I have been there myself and seen the quality of the services it is delivering. It is also setting out wider plans to deliver more houses and to promote business growth. It has also frozen its council tax, which means that residents will benefit from the fact that they have not had to pay that £1,075 over the past five years.
Mr Clive Betts (Sheffield South East) (Lab)
The Minister said in his statement that no council will face a loss of more than 6.4% in its spending power next year, the lowest level in this Parliament. Why does he think that that is a matter for self-congratulation? Will he confirm that the percentage cut that local councils will face in the next year will be bigger than the cut faced by all central Government Departments throughout the whole of this Parliament?
Kris Hopkins
It is the lowest level of this Parliament. We can achieve that because we are in a far better economic situation than we were when we came to power. More money may have been taken from this particular area of public service, but the fact is it represents a quarter of all public service, which is significant. I do not relish the idea of taking money off councils, especially as people are working extremely hard to deliver quality services. I say to the hon. Gentleman that he served in a Government who crashed the economy and we are picking up the pieces. We want to support local councils, and I would be proud to work with them to deliver quality services.
Oral Answers to Questions
Debate between Kris Hopkins and Clive Betts
Kris Hopkins
The councils facing the most demands are receiving the most money and will continue to do so. It is exceptional that a great city such as Liverpool is standing up and recognising its potential and how it can get itself out of the financial difficulties it faces. The fact that it is confident about its city deal, which will result in 15,000 jobs and 16,000 houses, as a consequence of its leadership, and the fact that it is growing its business base and drawing down significant amounts of money to support local businesses, demonstrates that the community understands the direction to go in, even if the hon. Lady does not.
Mr Betts
Given that this is a report by the independent NAO, should the Minister not be at least a little concerned about some of its findings? It states:
“The Department has a limited understanding of the financial sustainability of local authorities and the extent to which they may be at risk of financial failure”
and
“does not monitor the impact of funding reductions on services in a coordinated way.”
Is that not a damning indictment? If the Government continue with these policies, some councils will get into serious financial difficulties, and they will get there with the Government apparently unaware and seemingly uninterested.
Kris Hopkins
No local authority has not been able to secure its budget, and each year, as dramas and challenges have arisen, they have faced them and dealt with them. Furthermore, we should not forget that about £2.1 billion is lost to error or fraud and that, despite the challenges, local authorities have managed to grow their reserve base to £21.2 billion.
Housing Supply
Debate between Kris Hopkins and Clive Betts
Kris Hopkins
What we do is add up all the numbers of houses that have been built; and more have been built since 2007. As I said, planning consents have now reached 216,000, and the top 10 building companies are at their maximum capacity and are planning to grow a further 15% in the next year.
Mr Clive Betts (Sheffield South East) (Lab)
Let me ask the question in a different way. The Minister’s predecessor said that the Government’s target was to build more homes than were being built before the recession—not in 2010, but before the recession. Will the Minister explain in which year of this Parliament the Government have achieved that target?
Kris Hopkins
The hon. Gentleman raises a good point. We have gone through a massive crisis since 2007—I shall say more about it in a few minutes—and responsibility lay solely at the feet of the Government of whom the hon. Gentleman was part. We have been picking up the pieces ever since, and we aspire to deliver the houses that the country needs.
The Government’s affordable housing scheme is on track to deliver 170,000 houses as promised, and the houses committed by the previous Government are already delivered, demonstrating that we have delivered some 200,000 houses to date. We are so keen to accelerate the number of affordable houses that we are bringing forward our 2015-18 affordable housing programme and we want to deliver those much-needed affordable houses right across the country as soon as possible.
Kris Hopkins
The reason house building is still a challenge is that the Government of which the hon. Gentleman was a member broke the economy, borrowed too much, crashed the banking system, and wiped out a quarter of a million jobs. That is why it is taking so long to put house building back on track, but it is becoming stronger.
As a direct consequence of our extending Help to Buy to 2020, we will deliver some 120,000 new homes. Help to Buy will continue to be a success. Some 30,000 homes have already been delivered, 87% of them to first-time buyers, and 91% are outside London. The average house price is about £151,000, well below the average price of a house in this country at the moment.
Kris Hopkins
The total Help to Buy figure, covering both guarantee and equity, is some 36,000. I was talking about the number of new homes built, which is 30,000. Those 30,000 houses have been built because businesses have taken up the Help to Buy scheme. Again, this intervention—this building of new homes—is specifically to help hard-working individuals get on the housing ladder. This intervention is there to help people who could not secure a mortgage or get a deposit together, but it is not only helping the hard-working individual; it is also supporting businesses. For every house that is built, a new job is created. The 30,000 that have come directly from Help to Buy contribute to the 1.7 million private sector jobs this Government have delivered.
As much as the small and medium-sized businesses are really important, and as much as the top 10 builders out there are extremely important in terms of capacity, we also need to expand our large-site developments. So far, our large-sites programme has provided some 80,000 new homes, but unlike the last Government with their failed eco-towns, which failed to deliver a single home, we will listen to local councils, we will support local plans, and we will encourage locally led interventions to deliver housing at scale. The garden city proposals were published in April and we look forward to continued discussions with localities about driving out those houses.
Oral Answers to Questions
Debate between Kris Hopkins and Clive Betts
Kris Hopkins
I can reassure the House that the review will consider both smoke and carbon monoxide alarms. We will also consider whether landlords should be required to carry out regular checks on electrical installations.
Mr Clive Betts (Sheffield South East) (Lab)
One of the other major problems facing private sector tenants is the actions of letting agents. There was widespread support for the Government’s commitment to a redress scheme, and for the promise made on 20 May last year by the then Housing Minister to have one code of practice to underpin it. However, the Government now say that they cannot go ahead with one code of practice and must rely on voluntary codes, with agents being part of various bodies and with a test of reasonableness in other cases. Why are we not going to have one code of practice? Is it because the Government did not take the necessary powers under the legislation to enable them to do so?
Oral Answers to Questions
Debate between Kris Hopkins and Clive Betts
Kris Hopkins
I thank my hon. Friend for her question. Since the housing crash in 2008, many families in her constituency have struggled to get on the housing ladder, and the Help to Buy mortgage guarantee scheme, in particular, helps people like those she has mentioned. The tremendous response that RBS, for instance, has had, with some 10,000 inquiries in the first four working days, demonstrates that the Government are on the side of hard-working people and will support people such as the constituents she mentioned.
Mr Clive Betts (Sheffield South East) (Lab)
I welcome the Minister to his new responsibility. Last week the Communities and Local Government Committee had the Department’s permanent secretary and officials before us. We asked about the impact of the Help to Buy scheme on new house building. They said that the equity share element would add a maximum of 5,000 new homes a year, but they could not give us any assessment at all of the impact of the mortgage guarantee element. Is that because the Government, like everybody else, now believe that the scheme will have a minimal impact on house building but a significant impact on house prices?