Oral Answers to Questions

Lee Rowley Excerpts

Monday 10th July 2023 Commons Chamber

[Gareth Bacon (Orpington) (Con)]

13. What recent assessment his Department has made of the adequacy of local authority funding.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

We recognise that councils have faced challenges since covid, which is one of the reasons why we allocated billions more in subsidies to local authorities in the financial year 2023-24. Discussions on public spending often require hard choices and trade-offs on many worthy intentions, but we hope that the additional billions allocated demonstrate the Government’s commitment to local authorities.

[Christian Wakeford]

Council budgets have been impacted by huge costs due to covid and the triple whammy of increases in demand for services, fuel prices and inflation. The Minister will know that people are scared and running out of hope, so will he outline what support is available now to ensure that councils can still provide the vital services that people need?

[Lee Rowley]

As I outlined, we have allocated additional funds to local authorities in this financial year. It is also a statement of fact that a number of local authorities in England have increased reserves as a result of covid. In the last financial year, additional grant funding of nearly £7 million has gone to the hon. Gentleman’s local council, Bury Council, for adult social care.

[Gareth Bacon]

Does my hon. Friend share my view that one way to support local government finance and to reward well-performing local authorities such as Bromley Council would be to introduce multi-year funding settlements? Will he commission a review into the merits of this, so that local authorities can better plan for the future?

[Lee Rowley]

My hon. Friend is absolutely right. It is a testament to the good work of Bromley Council that he can demonstrate this and talk about it with knowledge and experience. Multi-year financial settlements are something that we all aspire to. One of the reasons we brought forward the policy statement for financial year 2024-25 was to ensure greater clarity for councils at the end of this spending review, and we hope to be able to return to multi-year settlements in future Parliaments.

[Paula Barker (Liverpool, Wavertree) (Lab)]

Discretionary housing payments administered by councils are a vital resource in staving off homelessness. The figures—£140 million in 2021-22, £100 million in 2022-23 and remaining flat for the next two years—show a £40 million cut and further cuts owing to increasing demand and inflationary pressures. Section 21 evictions are not slowing down, the number of households facing rent arrears is soaring and the number being forced into temporary accommodation is skyrocketing. The Department for Levelling Up, Housing and Communities has ultimate responsibility for homelessness, so when will Ministers at the Department tell their colleagues in the Treasury and the Department for Work and Pensions to wake up and smell the coffee?

[Lee Rowley]

One of the reasons why we have given local government additional funds in this financial year, as I just told the hon. Member for Bury South (Christian Wakeford), is precisely that we recognise that there are challenges. The Government have also allocated an additional £100 million for the most vulnerable households, to be administered through local authorities, which demonstrates the commitment to both local authorities and the most vulnerable in our society.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

6. What discussions he has had with the Chancellor of the Exchequer on long-term funding for local authorities.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

The Chancellor, his Ministers and his officials are in regular contact with the Secretary of State, me and departmental officials on matters pertaining to local government finance. The final local government finance settlement for this financial year, 2023-24, makes available up to £60 billion for local government in England.

[Helen Hayes]

Local authorities have lost £15 billion of funding since 2010, as the Government have sought to outsource both the pain and the blame for their punishing approach to the public finances, with only a fraction allocated back on a piecemeal, time-limited and ad hoc basis. The reality for local authorities up and down the country is that it is increasingly becoming far too difficult to deliver all the services that local residents rely on. When will the Secretary of State stop treating local government like a pawn in his political games, and start treating local government finance with the seriousness that both residents and hard-working local government officials need?

[Lee Rowley]

Difficult decisions were taken in the years after 2010 precisely because Labour failed to make those decisions in the years before 2010. One of the reasons why we have made available additional funding for local government in this financial year is to demonstrate that we understand the challenges local authorities face. Ultimately, however, as I said to the hon. Member for Bury South (Christian Wakeford), this sort of issue requires hard choices and trade-offs—something the Labour party continues to fail to demonstrate it understands.

[Mr Philip Hollobone (Kettering) (Con)]

As inflation impacts on local authority budgets, planning departments are becoming especially squeezed. Councils are meant to approve big planning applications within 13 weeks, but over the last year only 19% have been approved in that timeframe, down from 57% ten years ago. What can the Minister do to improve funding for local council planning departments?

[Lee Rowley]

My hon. Friend highlights an important place where further progress is needed. We recognise that there are challenges in this area, and I know that the Minister of State, Department for Levelling Up, Housing and Communities, my hon. Friend the Member for Redditch (Rachel Maclean), who is the Housing Minister, and the Secretary of State are well aware of these challenges and seeking to address them. My portfolio includes nationally significant infrastructure programmes, and we have brought forward the NSIP action plan, demonstrating our commitment to speed up projects and decisions within them as much as we can.

[Helen Morgan (North Shropshire) (LD)]

Shropshire’s Conservative-run council is trying to save £1 million a week just to balance its budget this year and restore its reserves to a safe level. Part of its problem is that the funding allocated to rural councils does not reflect the additional cost of delivering services in rural places. Will the Minister consider reassessing that allocation, so that rural councils can get the revenue they need to support the cost of the services they need to provide?

[Lee Rowley]

We are absolutely aware of the challenges that rural councils face. That is one of the reasons why we increased the rural grant within the most recent financial settlement by £10 million. Where there are pressures in local government finance in the coming years, we will continue to work with colleagues across the House to address them.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

Stoke-on-Trent City Council is facing unprecedented pressure, particularly because there are now over 1,000 children in the care of the city council, as well as multiple education, health and care plans that require children to be taken out of the city to find the provision that they deserve. Will my hon. Friend meet urgently with the leader of Stoke-on-Trent City Council, Councillor Jane Ashworth; its chief executive officer, Jon Rouse; and Members of Parliament for Stoke-on-Trent to quickly find a way forward and ensure that our finances are in the best possible position going forward?

[Lee Rowley]

I am grateful to my hon. Friend, who speaks with knowledge and experience on these issues. I would be happy to meet Members of Parliament from Stoke-on-Trent to talk about this matter in further detail.

[Tom Randall (Gedling) (Con)]

7. What steps his Department is taking to increase devolution in England.

--- Later in debate ---

[Chris Loder (West Dorset) (Con)]

T7. My right hon. Friend will know from my constant lobbying of him that it is my belief that the revenue support grant mechanism is inherently unfair and means that rural authorities such as Dorset, and particularly in West Dorset, receive little if any revenue support grant compared to the tens of millions that many urban areas, such as Wandsworth, receive. Will my right hon. Friend kindly tell me what he is doing to restore that balance and fairness for rural areas?

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Lee Rowley)]

My hon. Friend has absolutely made this case on multiple occasions, both to my right hon. Friend the Secretary of State and to myself. He is a champion for West Dorset and for rural communities in general. We will continue to work with local MPs who are concerned about this, but I would just gently point out that the primacy and the desire of the local government sector in this financial year has been for clarity and consistency, which is what we have provided to them through the local government financial settlement this year.

[Jon Trickett (Hemsworth) (Lab)]

T6. While the Government drag their heels on section 21, thousands of families are being evicted through no fault of their own by rapacious landlords—let’s be honest about it—with 2,000 families in May alone this year. That is not acceptable. Meanwhile, the Secretary of State has been having cosy meetings with private landlords’ associations, which gives the impression he is on the side of the landlords and not the renters. Will he at least say now that the Bill will come back in September?

--- Later in debate ---

[Mrs Sheryll Murray (South East Cornwall) (Con)]

The A38 is the main route to the largest city on the Devon and Cornwall peninsula. This nationally significant route needs substantial work between Carkeel and Trerulefoot in my constituency. What work is the Department doing with the Department for Transport to make that a reality?

[Lee Rowley]

My hon. Friend highlights the importance of nationally significant infrastructure programmes all across the country. It is vital that we speed up those projects and make sure that they deliver for local people more quickly. My hon. Friend is a champion for the A38; I know that she will be talking to the Department for Transport, and I am happy to do so as well.

[Patrick Grady (Glasgow North) (SNP)]

The Secretary of State says that the Scottish Government are not using the powers that they have, but it is his Government who keep vetoing Scottish Government policies and legislation that has been passed by the Scottish Parliament. Does that not just show that the Conservatives never wanted devolution in the first place and can now barely contain their glee at getting to roll back the powers of devolution?