Oral Answers to Questions Debate

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Oral Answers to Questions

Lord Stunell Excerpts
Thursday 15th July 2010

(14 years, 5 months ago)

Commons Chamber
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Henry Smith Portrait Henry Smith (Crawley) (Con)
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16. What steps he is taking to reduce the functions of non-departmental public bodies for which his Department is responsible.

Lord Stunell Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)
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We will definitely take steps to reduce the functions and cost of the Department’s quangos. We are reviewing each of our 27 quangos—a number that astonished me—in the context of the Public Bodies Bill. We are committed to increasing accountability and to reducing their number and costs and the overlap of their functions with local authorities. Announcements have been made on the Infrastructure Planning Commission, the Homes and Communities Agency, the Standards Board and the National Housing Planning and Advice Unit. A review of the Tenant Services Authority is also under way.

Jane Ellison Portrait Jane Ellison
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I thank my hon. Friend for that reply. When I am talking to the leader of my local council—Wandsworth, a top-rated council—one of the great frustrations expressed is about the number of plans and strategies that senior officers are compelled to write in areas such as youth offending and adult social services, when their time would be better spent delivering those local services. May I have some assurance that we will determine what strategies are needed locally rather than centrally?

Lord Stunell Portrait Andrew Stunell
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I agree with my hon. Friend. I was looking at some of the figures for the Homes and Communities Agency, which delivered—or at least assisted in delivering—55,000 houses at a cost of £80 million, which is £1,500 on the price of every house built. Local authorities have building inspectors, planning officers and auditors, and much of the activity is clearly duplicated and wasted. We have cut the comprehensive area assessment and the regional spatial strategies, and we are giving local authorities the opportunity to take the decisions themselves, with the experts that, in most cases, they already employ. We must cut out the duplication and nonsense that flows from the system set up by the previous Government.

Henry Smith Portrait Henry Smith
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Can my hon. Friend outline briefly how he plans to democratise the decisions and functions currently undertaken by quangos that will shortly cease to exist?

Lord Stunell Portrait Andrew Stunell
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The whole point—or at least a significant part—of what we are doing is based on restoring accountability for the decisions that these bodies have been taking. In some cases, we are ensuring that functions return to the local authorities, where they should have been. If we take, for example, the Standards Board, it cost £8,000 per complaint upheld. We are saying that we can sweep that away completely and restore the monitoring of standards to local councils; in addition, we are getting support from our colleagues in local government to provide a peer review process at a much reduced cost.

John Healey Portrait John Healey (Wentworth and Dearne) (Lab)
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The Department’s biggest agency is the Homes and Communities Agency. That has had not one, but two cuts to its budget this year in just two months—more than 10% of the money agreed and set aside to build new, affordable housing. Why was it that no Minister made a statement in public or to this House about those cuts? The details were snuck out on the HCA website. Will the Minister confirm now to the House that the £450 million cut in the HCA’s budget this year will mean that nearly 6,000 new affordable homes will not be built and 5,000 house building jobs will go?

Lord Stunell Portrait Andrew Stunell
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I have a lot of respect for the right hon. Gentleman, but when it comes to counting, he is not quite so good. We need to understand the dire situation this country was in. Emergency action was essential. However, my right hon. Friend the Minister for Housing will shortly be able to give details of all the developments that will go ahead, now that we have had a chance to assess the financial situation fully.

John Healey Portrait John Healey
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I shall give the Minister the chance to put the record straight. There was no black hole and no house building commitments were made without the money having been agreed and set aside, as he and other colleagues have claimed. If there had been, I would have received an accounting officer’s letter, but I did not. Will he confirm, therefore, that there was £540 million in the Department’s budget last year that we planned and agreed with the Treasury to spend this year on affordable housing, and that it has been cut back by a further £220 million? Will he now admit that his Ministers and team have not had the strength to stand up to the Treasury and have not had the courage to come to the House to tell us about the cuts they are making?

Lord Stunell Portrait Andrew Stunell
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I read in the newspapers that it was the previous Chancellor who could not persuade the Prime Minister of the day that he needed to stop borrowing and start tackling the deficit—but of course, that might have just been a press report. As I understand it, the housing pledge that the right hon. Member for Wentworth and Dearne (John Healey) brought to the House was for £1.5 billion. We have now authorised the release of £1.25 billion of that pledge. There will be housing built on a scale that the Labour party never achieved while in power.

Esther McVey Portrait Esther McVey (Wirral West) (Con)
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7. What plans he has for the future of the Government office for the north-west.

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Gordon Birtwistle Portrait Gordon Birtwistle (Burnley) (LD)
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9. If he will take steps to reduce expenditure by his Department’s non-departmental public bodies on the housing market renewal pathfinder programme.

Lord Stunell Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)
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The housing market renewal programme was included in the £6.2 billion of savings from Government spending in this year, as announced on 24 May. The Regenerate Pennine Lancashire pathfinder has been consulted on the reductions in my hon. Friend’s area.

Gordon Birtwistle Portrait Gordon Birtwistle
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Although I welcome the HMR pathfinder programme, which has delivered massive housing regeneration in many areas across the UK, including my constituency, will the Minister look into both the system of passporting proposals for regeneration and the funding stream, following Government approval, from the HCA to the local authorities? The present delivery quango, which sits between the HCA and the local authorities, top-slices an average of 10% of the funds available, which equates to approximately £40 million for 2008-09, while delivering little benefit on the ground—

John Bercow Portrait Mr Speaker
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Order. I think that we have heard enough.

Lord Stunell Portrait Andrew Stunell
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I thank my hon. Friend, who I know has done a lot of work in looking at the administrative costs of the process. One of the things that we will be examining closely is how those costs can be reduced and how local authorities can have more control over the process.

John Denham Portrait Mr John Denham (Southampton, Itchen) (Lab)
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The hon. Member for Burnley (Gordon Birtwistle) raises an important question, but what is the Minister’s answer to the current Lib Dem leader of Burnley council, who has said of this Government’s financial settlement:

“We are a deprived borough but once again we are suffering. I am disappointed and sick of us being kicked by budget cuts in Burnley”?

Is it not the case that the Minister has ensured that it is the poorest and most deprived councils in this country that are suffering the most?

Lord Stunell Portrait Andrew Stunell
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I am disappointed with that. What the Opposition have not appreciated is that my hon. Friend the Member for Burnley made the very fair point that far too much of the money is top-sliced and siphoned off, and does not produce the renewal that it is supposed to. That is what we are committed to putting right.

Caroline Dinenage Portrait Caroline Dinenage (Gosport) (Con)
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10. Whether he plans to bring forward proposals to facilitate local authorities in moving Travellers on from private and public property.

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Toby Perkins Portrait Toby Perkins (Chesterfield) (Lab)
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19. What assessment he has made of the effect on third sector organisations of the reduction in local authority funding announced on 10 June 2010.

Lord Stunell Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)
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Councils have complete flexibility in where they find savings to ensure that costs are reduced while they continue to support key front-line services. The voluntary sector is an important part of that.

Toby Perkins Portrait Toby Perkins
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I am grateful to the Minister for his answer, but is not the reality that, as in Chesterfield, many of our voluntary sector organisations rely on core funding from the local government sector, and that the cuts in the local government sector will inevitably lead to a reduction in that core funding that will fundamentally undermine any possibility that the voluntary sector can play a part in this big society?

Lord Stunell Portrait Andrew Stunell
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Well, it is not inevitable. I have just said that councils have complete flexibility in how they set priorities, and local authorities will need to prioritise. I say to the hon. Gentleman and the whole House that just as Ministers here have made sure that the £6.2 billion reductions hit just as hard at the centre as on local authorities, so local authorities need to have the same regard for the voluntary sector.

Baroness Chapman of Darlington Portrait Mrs Jenny Chapman (Darlington) (Lab)
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The voluntary sector in my constituency is, as I imagine is the case everywhere, extremely anxious about the impact that reductions in local government funding will have on the service they can provide, and nowhere more so than in relation to infrastructure. What is the Minister’s attitude to infrastructure bodies and how does he believe they should be funded?

Lord Stunell Portrait Andrew Stunell
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I certainly understand that anxiety. The whole country is anxious about the financial circumstances we face, both in the public finances and in the voluntary sector, and it will be extremely important for partners to work together, including local authorities and the voluntary sector, to overcome those difficulties in the very difficult circumstances we face.

Stephen Mosley Portrait Stephen Mosley (City of Chester) (Con)
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20. What steps he is taking to reduce the administrative burden placed on local authorities by central Government.

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Peter Bone Portrait Mr Peter Bone (Wellingborough) (Con)
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T5. Today, ECPAT—End Child Prostitution, Child Pornography and the Trafficking of Children for Sexual Purposes—has, in association with The Body Shop, launched a nationwide petition calling for guardianship for children who have been trafficked. Does the Secretary of State agree that that would help stop the scandal of child sex slaves who have been put into local government care being re-trafficked?

Lord Stunell Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Andrew Stunell)
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My hon. Friend draws attention to a new and important responsibility that the Department is assuming. I am keen to work with Members across the House on developing appropriate policies. I look forward to discussing that with him.

Julie Hilling Portrait Julie Hilling (Bolton West) (Lab)
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It is always popular for any Government to say that they will have a bonfire of quangos, but does the Secretary of State realise that removing the Government office for the north-west removes support for the voluntary and community sector and centralises power in Westminster? That is hardly “big society”; it is much more “very big Westminster.”

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David Burrowes Portrait Mr David Burrowes (Enfield, Southgate) (Con)
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Is it not extraordinary that, although hon. Members started today’s proceedings with Prayers, as they have done for 450 years, the Labour council in Enfield has followed the Labour council in Leicester by banning council prayers? Will my right hon. Friend reassure me that, under this Government, we will not marginalise faith in general and Christianity in particular from the public sphere and the big society?

Lord Stunell Portrait Andrew Stunell
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There is a place for faith in our society, and if one looks throughout the United Kingdom one finds that people of faith have played a huge part in our society. As it happens, immediately after this Question Time I am going across to Lambeth palace to meet the Archbishop.

Bridget Phillipson Portrait Bridget Phillipson (Houghton and Sunderland South) (Lab)
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One estimate is that 200,000 people will be made homeless as a result of the changes to housing benefit, and at the same time funding for social housing is being pulled from areas such as Sunderland. Will the Minister provide additional funding to local authority housing departments to deal with the significant increase in people who will be going to see them to register as homeless?