Oral Answers to Questions

Debate between Kris Hopkins and Robert Neill

Monday 16th March 2015 Commons Chamber

[Kris Hopkins]

I am sorry that the hon. Lady has missed the point. This is about devolving moneys to a council—in fact, a number of councils—that has the confidence to deliver services better and does not just look to Government to make decisions but stands up for people in its own community and wants to shape and deliver those services more effectively. Greater Manchester, through the devolution route it has followed, will deliver far more effective services. [Interruption.] The hon. Lady can shout as much she wants. The people of Manchester have taken control of delivering these services, and she is outside that network because she chooses to be there.

[Robert Neill (Bromley and Chislehurst) (Con)]

21. Given that local government is recognised as being the most efficient part of the public sector and that adult social care is one of the principal cost pressures on local authorities, are the Government not right to integrate in the way that is proposed in Greater Manchester rather than nationalise adult social care as proposed by the shadow Secretary of State?

[Kris Hopkins]

My hon. Friend is absolutely correct. People and GPs on the ground in communities, and people who are running acute hospitals and councils, know better than Government, regardless of which colour. Over the period of this Government, the number of people who are extremely or very satisfied with support of adult social care has increased from 62.8% to 64.8%. That is a direct consequence of local people on the ground taking control and delivering better services.

Local Government Finance

Debate between Kris Hopkins and Robert Neill

Tuesday 10th February 2015 Commons Chamber

[Kris Hopkins]

I have a lot of respect for the hon. Lady, but I am afraid that poor leadership in Birmingham and the fact that it has not collected some £100 million in council tax arrears may explain some of the issues it is facing. Stronger leadership and the ability to carry out the simple function of placing a charge on an individual and collecting it will assist it.

[Robert Neill (Bromley and Chislehurst) (Con)]

Does my hon. Friend agree that the real way to achieve proper sustainability for local government funding is to reward those councils who go for growth in their area and increase their tax bases—as we are seeing with the increase in business rates income anticipated this year—and make councils less dependent on central Government grant in the long term?

[Kris Hopkins]

My hon. Friend speaks very wisely and he knows from his own experience that local authorities appreciate these tools we have given them to grow their finance base, and there is an incentive for them to carry this out by improving those key services and increasing the resources to those services.

For those who do not freeze the council tax, the referendums principles report laid before the House on 3 February confirms that any increase of 2% or more will require a binding referendum by the local electorate. Councils that want to increase their bills should have the courage of their convictions and seek a mandate from their electorate. It is already the case that a council tax referendum can be held at a reduced cost in 2015-16 when combined with the general election. We announced on 3 February that any savings to the Consolidated Fund as a result of a combination of a referendum with the general election will be redirected to councils, so the cost of the referendum to a local authority is low. This weakens the argument that some might make that holding a local referendum will result in excessive cost.

Local Government Finance

Debate between Kris Hopkins and Robert Neill

Thursday 18th December 2014 Commons Chamber

[Kris Hopkins]

The cuts have had to be made as a consequence of the Labour Government’s failure to manage the economy. They are what happened as a result of the mess that was left. We have had to make difficult choices. Local authorities are far more sensible and respectful in trying to address that matter than Opposition Members. I am more likely to have a trustworthy conversation about trying to deliver those services with someone from a local authority than with any Opposition Member.

[Robert Neill (Bromley and Chislehurst) (Con)]

I congratulate the Minister and his colleagues on the statement and urge them not to take any lessons from a party that produced record deficits and doubled the council tax. Does he accept that if we are to have genuine local accountability, it is critical that it must be in a climate in which we continue to move away from old-fashioned dependency on central Government grant and to break down the ring-fencing that has inhibited innovation, as we have seen demonstrated by the better care fund, which deals with one of the key pressures on upper-tier authorities?

[Kris Hopkins]

I respect the wise words of my hon. Friend. He is right: the council tax has dropped 11% as a consequence of the actions that we have taken. It doubled under the previous Government. There is a need to move away from grant and to grow local economies. The best councils are now stepping up to the mark and growing those economies. On the better care fund, it is a difficult issue, but we are facing up to it. Where previous Governments have failed to do this, we will deliver savings and ensure that those vulnerable people are getting a decent service and the dignity that they need.

Oral Answers to Questions

Debate between Kris Hopkins and Robert Neill

Monday 10th November 2014 Commons Chamber

[Robert Neill (Bromley and Chislehurst) (Con)]

9. When his Department plans to issue a final response to the consultation entitled “Opportunities for collaboration, cost savings and efficiencies”; launched in May 2014, on the local government pension scheme.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Kris Hopkins)]

Our consultation outlined how £660 million a year could be saved if local government pension funds were invested more efficiently. We will publish a response in due course. Many funds have already started to take the messages from the consultation on board.

[Robert Neill]

I hope that “due course” will not be too long delayed, because my hon. Friend is absolutely right to recognise the significant savings that have been made to taxpayers and scheme members by the agglomeration of vehicles. When he takes on board the consequences of the consultation, will he particularly bear in mind the value that can be brought by collective investment vehicles, which can achieve some 90% of those savings without significant administrative upheaval and can provide useful vehicles for wider investment?

[Kris Hopkins]

The consultation considered how some £240 million could be saved by creating combined investment vehicles. It should be noted that London borough councils have already taken that on board and some 30 councils have come together after their council meetings and have agreed to bring those funds together.