Local Government Finances: London

Louie French Excerpts

Wednesday 26th March 2025 Westminster Hall

[Mr Bailey]

The hon. Member is right, but we cannot adjust the market situation without adding more houses to the stock. Once we have increased the number of houses, we can start tackling the private rented sector. We are doing so, and I hope that the Minister will expand on some of the measures that this Government are taking to bring our landlords into line and improve the quality of the private rented sector.

As a result of the problems I have described, London’s boroughs are facing an unprecedented financial crisis, one that threatens the vital public services that millions of Londoners rely on, including my constituents in Leyton and Wanstead. Our communities are strong, but we also face significant challenges, ranging from crime and antisocial behaviour to a shortage of decent, affordable homes and the need for better opportunities for young people. All those issues can only be addressed effectively if our excellent councils can invest in our future.

Many councils are now teetering on the edge of issuing section 114 notices—meaning effective bankruptcy—and those risks are increasing, because the drivers of increased costs have simply not been accounted for. Seven London boroughs, nearly a quarter of the total, require exceptional financial support for 2025-26 amounting to over £400 million, and London accounts for almost a third of the total national EFS funding of £1.3 billion. We need to seriously engage with these challenges and chart a sustainable path forward. According to London Councils, London boroughs are forecast to overspend by £800 million this year; particular pressures include homelessness at £330 million, adult social care at £200 million and children’s social care at £160 million. The cost to the public purse will be so much greater in the long run if we do not deal with this crisis now.

By far the most acute financial pressure facing London boroughs is homelessness. The scale of the crisis is staggering: London Councils assesses that one in every 50 Londoners is currently homeless and living in temporary accommodation, including nearly 90,000 children. First and foremost, this is a human tragedy. Like many other colleagues, I have been engaging with individuals and families who are suffering as a result of the housing crisis, including a very powerful visit that I had this Christmas with Crisis in central London. In addition to this human suffering, homelessness represents the fastest-growing financial risk to London’s local authorities, with our councils spending £4 million per day on temporary accommodation—a figure that has surged by 68% in just one year.

[Mr Louie French (Old Bexley and Sidcup) (Con)]

I thank the hon. Member for giving way and for securing today’s important debate. I agree a lot with what he is saying about homelessness and the challenges it creates for London authorities, whether in inner London or outer London, but it prompts the question of why his Government have cut the housing targets for Labour councils in central London.

--- Later in debate ---

[Mr Bailey]

I thank my hon. Friend for her intervention. She refers to one of the three main stresses on our councils: addressing that would bring the greatest relief to all of them. Another step that the Government could take to tackle the homelessness crisis would be to ensure that the LHA rates reflect actual housing costs. London rents have risen so fast in recent years that just 5% of private rented properties are affordable on LHA, pushing more and more families into homelessness. I hope the Minister will set out the steps the Government are taking to review LHA rates, because that could make a huge difference to many families as well as to council finances.

Additionally, a longer-term social rent settlement would stabilise council housing revenue accounts and allow boroughs to increase the building of the new genuinely affordable homes that Londoners need, which we know is the only way to tackle the housing crisis.

When deprivation measures—rightly—have such a significant impact on funding formulas, it is vital to ensure that they effectively account for the impact of rents. Housing costs are one of the biggest drivers of deprivation in London, which is the third most deprived region in England once housing costs are considered. Beyond housing, the fundamental issue at the heart of London’s council funding crisis is a growing disparity between funding allocations and actual levels of need. The main local government funding formula has not been updated since 2013, meaning that allocations are based on outdated data that fails to account for population growth, demographic changes or London’s high housing costs.

Such difficulties can be illustrated by the councils that serve my constituents in Leyton and Wanstead. Redbridge has had population growth of 11.4% since 2011 and has huge pressures from homelessness, with a spend of £52 million a year on temporary accommodation. This is driven by the fact that Redbridge has an enormous private rented sector, comprising 75% of renters locally. The eviction rate in Redbridge is at 4.6% per 10,000 renters, almost triple the London average, with 86% of those evictions coming from the PRS. There is no escaping the reality that shocking numbers of people in constituencies like mine are now being evicted as the housing market changes, and identifying creative policies to tackle it is truly urgent.

Waltham Forest is facing massive pressures from increased homelessness, with a 55% increase in temporary accommodation in just one year up to last October. The requirement to spend under 51% of the homelessness prevention grant on temporary accommodation, although obviously a step in the right direction, will mean that still more of the bill for rising homelessness costs will have to come from the general budgets, including from reserves and other spending.

Costs from special educational needs and disabilities have also been surging, with a forecast overspend of £4.6 million, but the increase in the high needs block funding has not recognised that. Across London the upshot of the large gap between assessed need and actual funding, which the Institute for Fiscal Studies has identified as 17%, is the largest shortfall of any region in England. Many outer London boroughs are among the lowest funded per capita in the country, despite significant pressures.

We welcome the Government’s commitment to reviewing local government funding, because this is a huge opportunity to create a system that accurately reflects the current levels of need. In particular, we need to make sure population figures are robust, which requires serious attention to whether the figures for London reported in the last census are accurate, given that many people left the capital during the pandemic and have since returned.

[Mr French]

I echo the hon. Member’s comments about funding not keeping up with demographic changes. That is a cross-party criticism—not one aimed just at the Labour Government—because the problem is historical. Other price and funding challenges coming through include contract inflation, and the impact of the jobs tax on all local councils. The impact on Bexley council is expected to be around £5 million next year, but the Government are only providing £1.6 million of funding. Does the hon. Member agree that Ministers must address that issue, as well as the issue of fair funding, to ensure that councils can be financially sustainable?

[Mr Bailey]

No, and I will allow the Minister to explain why later.

The Tories’ legacies are a local government funding formula that does not recognise London-wide changes, pressure and needs, and a woefully outdated division between outer and inner London. Even 15 or 20 years ago, the traditional distinction between the core city and its outer areas made some sense: density and deprivation were more concentrated in the centre, as a legacy of slums and deindustrialisation. But the impacts of affordable housing and demographic changes have since consigned that situation to the past.

The population, especially people on lower incomes, have moved outwards, but the funding formula has not kept up. The places we live in have changed massively. Populations have grown as new people have come in, which has pushed up rents and house prices, contributing to real social exclusion and deprivation for many. I will quote just two of the many statistics that illustrate that. The borough of Redbridge has more than 80,000 children and young people; Islington has less than half that figure, but the figures for spending on children’s services are almost the inverse—Islington is able to spend £81 million and Redbridge just £44 million. That cannot be justified by deprivation rates, because Redbridge sits above the London average rate, and Islington below it. The situation is no different for public health, where outdated formulae mean that Waltham Forest receives 2.5 times less public health funding per person than Kensington and Chelsea, despite having higher levels of deprivation.

We must recognise that this is not just about the grant formula itself. Inner London weighting has impacts across many policy areas and therefore affects the quality of life of my constituents. Performance levels across education, health, crime and antisocial behaviour are becoming harder to sustain due to recruitment and retention issues, because teachers and police officers can earn up to £6,000 more just by travelling 15 minutes on the Tube. The disparity impacts both revenues and costs, because many inner London boroughs have a greater ability to raise funds from business rates and charges. That also needs to be further taken into account in the Government’s funding reforms.

Ultimately, we need significant change that recognises the impact of huge London-wide demographic shifts, but we also need specific, special consideration for outer London. I welcome the steps that the Government have taken so far to reform the local government financing system, including by giving councils multi-year settlements, which allow them to plan more effectively. That said, local government funding reform will not, on its own, guarantee the financial sustainability of local government, and we all know the challenging financial position that the Government inherited.

If greater resources cannot come from national Government, one alternative would be to empower local authorities to raise revenue through greater fiscal devolution. The fact that seven London boroughs now require exceptional financial support should be a wake-up call for us all—but EFS is not a solution; it is an emergency measure that does nothing to address the structural funding problem. The two London boroughs that required EFS in 2024-25 need even greater support in 2025-26. Relying on EFS would only kick the can down the road and allow financial instability to deepen. That presents a further concern for my constituents because our local councils have managed their budgets prudently and well. They have dealt with the inadequacies of the funding settlement and have often had to increase council tax as a result.

We cannot continue to see success punished, as happened under the previous Government, through policies that direct funding towards life support instead of tackling the underlying drivers of increased costs, which affect well-managed and poorly managed councils alike. I urge the Government to work with the local government sector to explore alternative support mechanisms, such as long-term debt restructuring, to give councils a genuine route to financial stability. We look forward to the funding reforms due in the next 12 months, but we must recognise that the pressure driving costs for our councils is linked to other policies across Government, from housing and planning to special educational needs and disabilities reform.

Strong and empowered local government in London is vital to support delivery of our national missions. Whether we are talking about raising living standards, delivering 1.5 million new homes, getting our NHS and social care system back on their feet, or creating good jobs and strong communities, it all comes back to local councils such as Waltham Forest and Redbridge delivering for local communities. Our Labour councils can do so much more if those challenges are tackled.

Despite the challenges, our hard-working local government staff and council leaders are already innovating and delivering change. In Waltham Forest, the council aims to deliver 27,000 new homes and 52,000 square feet of working space. Redbridge has taken forward a new empty property strategy to tackle that element of the housing crisis, alongside plans to deliver 19,000 new homes and 7,000 new jobs over the next decade. London MPs across the House, along with our hard-working councillors and council officers, are keen to work in partnership with the Government to address the huge challenge we face, and I look forward to playing my part in that.

Havering Council: Funding

Louie French Excerpts

Tuesday 28th November 2023 Westminster Hall

[Jon Cruddas (Dagenham and Rainham) (Lab)]

I beg to move,

That this House has considered funding for Havering Council.

This afternoon, I want to: highlight the financial situation facing the London Borough of Havering; ask for help and support from the Government; request a joint approach to remedying the situation; and offset the dangers of a section 114 report by the council’s chief financial officer, which would effectively freeze all non-statutory spending.

There is obviously also a wider national story here. Councils continue to face increasing demands for statutory services, especially adult and children’s social care, the provision of temporary accommodation, and homelessness support. Demographic forces are driving up demand for those services, and that affects some councils more than others. Meanwhile, central Government grant funding for councils dropped by some 40% in real terms between 2009-10 and 2019-20; it has gone from £46.5 billion down to £28 billion. Consequently, councils are more and more reliant on local funding through council tax and business rates. That has not been enough to compensate for the drop in central Government funding.

Since 2021, five local authorities have declared themselves effectively bankrupt because their costs are larger than their resources. Slough, Croydon, our neighbours in Thurrock, as well as Woking and Birmingham City Council, have all issued section 114 notices. Until recently, section 114 notices were generally seen as the result of financial mismanagement or equal pay backlogs. That is changing, however. Section 114 notices are increasingly likely to be issued by a significantly larger pool of councils, due to a one-two punch of demographic changes and dramatic shifts in funding. Combined, these changes mean that a whole series of councils look likely to become trapped in a position in which the cost of social care and homelessness exceeds their resources.

Many local authorities are already issuing warnings about section 114 notices. These include city councils, such as Sheffield, Coventry, Southampton and Nottingham; district councils, such as Mole Valley, Chelmsford, St Albans and South Cambridgeshire; borough councils, such as Windsor and Maidenhead, Surrey Heath and Wokingham; and county councils, such as Hampshire, Kent, Derbyshire and Northamptonshire, alongside councils such as Medway, Bradford, Barnsley, Rotherham and Manchester.

These councils do not fall on one side of a strict party political divide. They include councils from across the country, and from north and south; councils urban and rural; and councils led from both the left and the right. For instance, one in 10 of the so-called SIGOMA group —the Special Interest Group of Municipal Authorities, which represents 47 urban local authorities—has reported considering issuing a section 114 notice this year, and 20% say it might be possible in the next year. Similarly, one in 10 members of the County Councils Network reports facing effective bankruptcy. If we look at politics, the list includes Surrey Heath Council—the local council of the Secretary of State for Levelling Up, Housing and Communities—and various Labour-led authorities across the country.

Despite local authorities’ dire financial situation, the autumn statement had no new money for social care services, or any general local government funding beyond what was announced last year. However, I note that the Government increased local housing allowance rates last week, which is to be welcomed.

Although the language of local government often appears technically complex and incredibly dull and boring, we might conclude that much of British local government—a significant portion of the British state—is in danger of literally going bankrupt. This reality stretches way beyond those authorities that have already effectively declared themselves bust, and it has huge implications for public life across a range of services, from refuse collection, housing and homelessness, to education, social care, tackling antisocial behaviour, estate management, libraries and youth services—the list goes on. It is estimated that some 90% of councils have been using their reserves to meet their statutory duties, although some are more fortunate than others in that regard. I will come to that in a minute.

Take the general situation in London. According to London Councils, the capital’s boroughs’ overall resources are about 18% lower than in 2010-11 in real terms, but the population of the capital has grown by almost 800,000 since then. London boroughs need to make some £500 million of savings for 2024-25, to meet an estimated £2 billion funding gap over the next four years.

The next few weeks are critical. Councils will shortly receive their settlement figures, probably just as Parliament goes into recess. Following consultation, the figures will be confirmed in the middle of January, and council tax will be set in early March. It is against that general backdrop that I want to consider the situation facing Havering.

I should make three initial points regarding Havering. First, Havering has been very open about its predicament. In September 2023, the leader of the council, Ray Morgon, warned that the authority could be six months away from triggering a section 114 notice because of the escalating costs of social care and housing. Although other boroughs have tried to obscure their financial position and in effect hide from the communities that put them in the town hall, Havering has levelled with residents from the outset about what is going on. I very much welcome that as a mature form of civic leadership.

Secondly, Havering is generally regarded as a well-run and efficient council. It has low borrowing, unlike Croydon or Slough, and it has no historical pay claims, unlike Birmingham. It has the lowest unit costs in London, according to the well-regarded LG Futures consultancy, and is the third most productive council in the country, according to the consultancy IMPOWER. The situation it faces is very different from that of its immediate neighbours. Thurrock, for example, provided £655 million to companies via bonds, including for the purchase of some 53 solar farms. It shares a border with Barking and Dagenham, which I partly represent, and which has an accumulated debt of £1.2 billion. Havering is in a very different situation, and has not embarked on ill advised speculative activity to try to offset funding challenges.

Thirdly—this is not a party political issue—until May last year, the borough was a Conservative-led authority. Today it is run by 22 representatives of Havering Residents Association, supported by Labour’s nine councillors on the authority. On the scale of the financial challenge facing Havering, we have to bear in mind that local government funding continues to use a distribution model dating from 2013, based on data from the 2011 census. The model is ill equipped to deal with the kind of population flows that we have experienced in outer east London over the last decade.

Attempts at establishing a revised fair funding formula based on demographic change and modern need have effectively been parked by the Government, with pretty disastrous consequences for boroughs such as Havering. Moreover, the authority has limited resources to help take the strain. Havering’s reserves are the second lowest in London, standing at some £47.8 million. Meanwhile, the borough receives the third lowest settlement funding assessment in London, yet it remains in the top quartile for income collection.

The scale of the problem becomes apparent when we consider the demographic pressures facing adult and children’s social care. Havering has the second oldest population in London on the one hand, yet it has the fourth fastest growing children’s population in the entire country among those aged 0 to 14. On the growth of the child population, the Department for Education uses more recent data to allocate children’s school place capital funding. For 2025-26, it has allocated Havering a staggering 57% of all of London’s schools basic needs capital funding. That demonstrates the extraordinary expansion in the borough’s child population. That statistic shocked me, and it shows how important it is to use the latest data in distributing our resources. The other 43% of that funding is divided up between London’s other 33 boroughs. That is just one vivid statistical example of the changing demographics in the capital, of Havering’s growth and growing numbers of young people, and the escalating demands that that places on statutory expenditure.

As for the financial situation, Havering is currently forecast an overspend of some £23 million. In terms of its recent track record of budget setting, since 2010 it has delivered a mix of £163 million in savings and income generation, most of which has been reinvested in other services. It has also sold off £160 million of assets over the last 10 years.

To illustrate the scale of reduced support from central Government, Havering received nearly £100 million in central grant in 2010-11. That was reduced, in just over a decade, to just £37 million in 2023-24. Its budget gap is currently estimated to be some £31.2 million for next year, and £77 million over the next four years, against a net budget of £182 million. Currently, it has the fifth highest council tax in London. I accept that, for 2023-24, the authority’s core spending power was increased by some £18 million, including the council tax social precept, yet the pressures from social care were already £20 million in 2022-23, so the increased funding did not address additional demand and inflationary pressures for 2023-24.

On children and adult social care costs, it is estimated that the rates paid to providers for adult social care has increased by 33% since 2019-20, and children’s placement costs have risen by 49% over the same period. Those rises are partly accounted for by care home costs charged by hedge fund owners. In Scotland, in contrast, those running care homes have to be not-for-profit organisations. Basically, for-profit care is crippling our councils. Placements for our children can cost tens of thousands of pounds a week.

To add to that, Havering is seeing a large increase in those presenting as homeless, especially families. That is partly the effect of out-of-borough placements by other London local authorities, partly the effect of the housing benefit cap, and partly due to general migration to outer east London. It is now costing the authority some £3.5 million in cumulative accommodation costs.

Despite those extraordinary demand pressures, over 80% of Havering’s core income now comes from council tax. To repeat: it received the third lowest settlement funding assessment in London.

[Mr Louie French (Old Bexley and Sidcup) (Con)]

I congratulate the hon. Member on securing this debate. Many of Havering’s challenges that he has outlined are similar to those we experience across the water in Bexley. As a former deputy leader of the council, I have great sympathy for the arguments he is making. Given some of those challenges and the growth that, as we know, is coming out eastward on both sides of the river, does he agree that one way for the Government to quickly get more money out to the likes of Havering and Bexley would be to allocate more of the funding that currently goes to City Hall directly to those boroughs?

[Jon Cruddas]

I am not playing pass the parcel here; it seems to me that, objectively—all parties can agree—there is a structural problem that is escalating across the length and breadth of this country. Havering is where the rubber hits the wall, in terms of the escalating demographic changes, especially with young people set against the long-term legacy of an older community, and this one-two punch of funding pressures on our basic statutory reserves. Therefore, I am not going to get into this game; I want to create some sort of cross-party dialogue towards greater partnership to resolve these pressures, rather than playing this little tit-for-tat political game.

Meanwhile, our health challenges mean additional budget pressures for people coming out of hospitals who need social care. In fact, it would be better for them not to go into hospital at all, but Havering has the lowest number of GPs per head of population in London.

Therefore, overall, given that Havering had the second lowest level of reserves, and given the level of its overspend and the forecast budget gap for next year, it is warning that, without additional support, it is six to 12 months away from issuing a section 114 notice.

To help Havering—and to return to the point that the hon. Member for Old Bexley and Sidcup (Mr French) made about how we resolve the situation—fundamentally, a fair-funding review must be implemented: one that better allocates resources based on modern realities of demographic change and need. I accept that that will not happen this side of an election, but may I suggest that any new money that the Government might allocate should not rest simply on the current funding formula, which is increasingly outdated and further compounds the inequalities in funding?

However, the only solution being offered seems to be capitalisation orders, which Havering will have to take if there is no new money. That penalises well-run councils with an additional 1% added to the Public Works Loan Board rate—a rate that is then fixed for 20 years—yet that blunt instrument will penalise an ever larger number of residents under well-run councils. Perversely, it will also increase those councils’ debts further each year and mean that we will go back to them year after year. Surely, as more councils are forced to use such orders, we need a more agile system—one that does not use a form of payday loan to pay for our public services. There should be different rules for good councils such as Havering. It is clear that the funding system is broken and must be fixed.

Overall, a crisis is unfolding across local government, and that is captured in well-run local authorities such as Havering. I request urgent discussions to look at these solutions between national Government and our civil leadership to help to address the looming funding crisis. I also suggest a more agile capitalisation system. The current system further penalises the residents of an increasing number of boroughs that are having to deal with the heightened level of statutory expenditure.

Havering is very much in the eye of the storm, yet it is commendably honest about the scale of the challenge it faces. I hope the Government are listening and will respond, because the clock is ticking. Otherwise, more councils will follow and our local communities will suffer. I look forward to the Minister’s response.

Voter ID

Louie French Excerpts

Thursday 27th April 2023 Commons Chamber

[Rachel Maclean]

No, I strongly reject that. I can see where this debate is going. Opposition Members are making shrill, hyperbolic and misguided claims that this is somehow voter suppression. I find that quite extraordinary, given that the hon. Gentleman’s constituency Labour party requires and expects its members to turn up with photographic ID when selecting candidates.

[Mr Louie French (Old Bexley and Sidcup) (Con)]

Does my hon. Friend agree that this is typical flip-flopping from Labour Members, who are now campaigning to repeal laws that they introduced in Northern Ireland in 2003?

[Rachel Maclean]

I thank my hon. Friend for his question. When Labour Ministers introduced voter ID in Northern Ireland, they set out in great detail why the legislation was necessary. Why is it good enough for one valued part of our United Kingdom but not good enough for the electors of Great Britain?

Ballot Secrecy Bill [Lords]

Louie French Excerpts

3rd reading
Friday 24th March 2023 Commons Chamber

[Mr Louie French (Old Bexley and Sidcup) (Con)]

I rise in support of the Bill, which, as a by-election winner, holds a special place in my heart. That is not only because my noble friend, Lord Hayward, was the chair of my selection meeting, where his passion and knowledge of electoral matters was clear to all of us, but, as we have heard already, because it was during a by-election more than 150 years ago, in 1872, that a secret ballot was first used. This followed the Ballot Act 1872, which made provisions for every elector to be entitled to mark the ballot paper without being seen by anyone else.

The principle of the secret ballot is the bedrock of our system and an essential democratic principle. It is therefore unacceptable that there are some cases that undermine that principle, namely through family voting, where, as we have heard already, a voter is accompanied by another person into or near a polling booth with the intention of influencing their vote. I welcome the fact that the Bill introduces an important and specific new offence for individuals who accompany a voter to a polling booth, or position themselves nearby with the intention of influencing a voter.

I also welcome the fact that the Bill does not apply to, first, a companion of a disabled voter who has made the required written declaration to allow them to assist a disabled voter, and, secondly, to a child of a voter accompanying them to the polling station. I am sure that I am not the only Member in this Chamber today who, as a child, went with their parents when they voted—I can remember it well. In my case, I went with my mum, who is hugely passionate about women exercising their hard-earned right to vote, and who instilled this passion in me, which is one of the main reasons why I support the Bill. Thankfully, for me, my mother also votes for me in person, but I do not unduly influence her. [Interruption.] Or so she tells me, yes.

As Democracy Volunteers discovered, more than 70% of those being affected by family voting were women. Further to that, I welcome the fact that the Bill also provides our brilliant polling station officers and presiding officers across the country with the clarity and support that is needed effectively to act on these issues when they occur.

The Government are committed to protecting our democracy against those who seek to harm it, which was demonstrated by the Elections Act 2022. I welcome the fact that the provisions in the Bill complement that important work. Voter fraud remains a serious issue, particularly in parts of London and, as we have heard, particularly around postal voting, which my hon. Friend the Member for Harrow East (Bob Blackman) has already highlighted. We need to come back to that matter and do all we can to stop voter fraud.

[Bob Blackman]

As a fellow London MP, my hon. Friend will know that we have multi-member constituencies, particularly for local elections. That can lead to confusion in voters’ minds. Does my hon. Friend agree that we need to ensure that the guidance tells people how many votes they have and how they should cast them?

[Mr French]

I completely agree with my hon. Friend. Some of the clarification and changes, particularly around the mayoral elections in London, will help with that clarity for voters and the voting public.

I wish to thank my hon. Friend for steering the Bill through the House and ensuring that our democracy receives the protection that it deserves. I also applaud him for that fantastic new suit that he has worn today to deliver that. I pay tribute to Lord Hayward again for his tenacity in pursuing this issue, which is a reflection of his passion and expertise in our democracy and other electoral matters, and I am pleased to support the Bill.

Levelling-up and Regeneration Bill

Louie French Excerpts

2nd reading
Wednesday 8th June 2022 Commons Chamber

[Mr Louie French (Old Bexley and Sidcup) (Con)]

I welcome parts of this Bill, which has the great potential to improve the planning system, but I do have some concerns that I hope the Secretary of State and Ministers will address either today or during its passage.

First, I will quickly rattle through the positives of the Bill: increased powers for councils to bring vacant units back into use and greater powers to encourage positive regeneration across the country; streamlining and extending the temporary regime for outdoor seating to promote the café culture that has been beneficial to local businesses and communities across Bexley and the country; extending enforcement powers and doubling fees for retrospective planning so that local councils can crack down on dodgy developers and better protect their neighbours; reform of the infrastructure levy so that developers pay more of their profits to support community infrastructure required to support new homes and to allow councils to differ the rates of the levy for different areas that do not want more development; and the strengthening of local plans so that local residents have a greater say in the future of their areas and development can be targeted to use old brownfield sites, as we heard from my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), and to protect the environment.

The latter is one of the major issues that councils in Greater London have faced with the Mayor of London’s London plan, alongside the dramatic increase in housing targets and policies that are simply not appropriate for Greater London areas such as Bexley. Residents across Old Bexley and Sidcup regularly tell me that they do not want any more flats, and I hope that the Bill will help local people to have a greater say over their future. I would therefore appreciate it if the Secretary of State clarified how he sees the relationship between the London plan and future local plans changing, given the existing hierarchy of planning policy. In places such as Bexley and Bromley, we currently have a democratic deficit whereby local people did not vote for a Labour Mayor of London but are still stuck with his policies. Levelling up the country must not forget areas in the south-east such as Bexley, which does not have the infrastructure of inner London but is seeing its population dramatically increase and never gets its fair share of funding, whether grant funding or health spending per head. The Government would be well advised to carefully review how taxpayers’ money from central Government is allocated in London—how much of it is wasted and swallowed up by City Hall—when that money could be sent directly to local councils that can target its use better, as we have seen with business grants during the pandemic.

Here lies one of my main concerns: I hope that Ministers will put appropriate protections in place to stop London’s problems being replicated across the country. For every Ben Houchen and Andy Street, there is a Sadiq Khan—a Sadiq Khan who has destroyed borough-based policing and overseen record levels of crime; a Sadiq Khan who has nearly bankrupted TfL and overseen a record number of strikes; and a Sadiq Khan who has increased his share of council tax by 8.8% this year and plans to introduce a stealth tax of around £4,500 a year on drivers in Greater London during a cost of living crisis. Not even the champagne socialists can afford this Bill. Although levelling up this country is an admirable and key Government policy, I implore the Secretary of State and Ministers to use their power to ensure that devolution does not equal more civil servants, more local taxes, more nanny state and more Sadiq Khans.