Provisional Local Government Finance Settlement

Lord McKenzie of Luton Excerpts

Thursday 13th December 2018 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, I thank my noble friend and he is right to say that on occasion, my heart is in my mouth when he gets up to speak, but I always recognise the fairness with which he addresses the issues. I also understand that he speaks from the front line. I recognise, as we all do, the pressures that are on local government. As I say, we really commend the work being done by councillors up and down the country. I think he is being fair when he says that this is a good settlement. I also think he is being fair when he says that we have had some challenges in the past. Perhaps this has to be set against the background of what will be a significant year, because of the business rate retention scheme coming on line, fair funding being looked at and the spending review—outside of what the Chancellor has said is the end of austerity. Given that, we should expect things to ease.

It would be absolutely right to accede to the request of the noble Lord. It is beyond my pay grade to speak to Secretaries of State on an equal basis, but I will certainly pass on to my right honourable friend the Secretary of State his view that other spending departments should be encouraged to look at what they can do because of the demands being made on local government.

The noble Lord, Lord Porter, said that the challenges are due to increased demand rather than inefficiencies. I accept that, which is why the digital declaration in the Statement is particularly important, as is the announced £7.5 million local digital innovation fund, which provides transformation funding for the town planning system in Southwark—the area of birth of the noble Lord, Lord Kennedy. Other similar announcements were made in Birmingham, to look at the way in which Amazon’s Alexa or Apple’s Siri can help with the delivery of some services. We have to think outside the box in innovative ways to make the most of digital services. That point was made in relation to the earlier Statement on police funding.

[Lord McKenzie of Luton (Lab)]

My Lords, despite the Minister’s warm words, is it not the case that by 2020, there will have been a reduction in core funding for local authorities of some £16 billion over the previous decade? Is it not the case that local authorities currently house 79,000 people in temporary accommodation, including 120,000—perhaps even 130,000—children, that they deal with almost 5,000 social requests every day and that 8,000 are being affected by the withdrawal or closure of care homes? Is this not austerity writ large? How would the Minister describe the life chances of young people caught up in this?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord paints a gloomy picture that does not take account of the current year which, as I said, is a good settlement. I am sure that the noble Lord would acknowledge that. I spoke about the tough decisions and challenges of the past decade, which have coincided almost entirely with the period of austerity that followed the deficit we inherited. We can debate who was responsible for that, but in fairness the noble Lord must acknowledge that massive challenges had to be faced. At last we are coming out of that.

I know that there are housing challenges; in the department, we are seeking to meet them with some imaginative proposals on affordable and social housing, certainly in relation to rough sleeping. Social care is a challenge, which is why we committed the £650 million referenced in the Statement. I recognise that we have to do more for the life chances of people up and down the country who deserve a good start in life. That is why local authorities are to be commended on their massive job throughout what has been a difficult period. However, the period has come to an end and we are coming out of it with today’s Statement.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, first, my role as Minister for Faith has been mostly pastoral—just to see what attendances at the cathedral and at churches in Salisbury have been like. There was quite a dip after the second Novichok incident, if I can call it that, and there has been some recovery from that. I do not have details of the precise financial assistance in front of me but I will cover those details in the letter that I will send to noble Lords.

[Lord McKenzie of Luton]

Can the Minister help me on a specific point not touched upon to date, which has to do with the introduction of universal credit and the managed migration? As proposed, the timing of that looks likely to mean that people will stay on legacy benefits, including housing benefit, for longer than would otherwise have been the case. To what extent, if at all, was that reflected in the Statement?

[Lord Bourne of Aberystwyth]

My Lords, I confess that I did not come steeped in the issues of universal credit, but the noble Lord is right about legacy benefits and the delay in some of this, including housing benefit still being relevant. If I may, I will write to him with full details of that, because I do not have it to hand.