Liverpool City Council Funding

Debate between Luciana Berger and Stephen Twigg

Tuesday 29th October 2019 Westminster Hall

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

I beg to move,

That this House has considered the funding of Liverpool City Council.

It is a pleasure to serve under your chairmanship, Sir George. Liverpool has borne the brunt of a decade of austerity. Massive cuts in Government funding have hit the council hard, combined with benefit changes that have hit the poorest and most vulnerable hardest. I pay tribute to all those who work across public services in Liverpool, who do their utmost to deliver the best services. Last Friday I visited the fantastic Mab Lane Primary School in my constituency, which serves a community with high levels of social and economic need. The headteacher, Laura Morgan, provides truly inspirational leadership in a school that is making a real difference to the life chances of children, and therefore to the local community.

Liverpool City Council tells me that, when adjusted for inflation, it has £436 million less to spend each year than it did in 2010, which equates to an overall budget cut of 63%. As a result, Mayor Joe Anderson has warned that the council faces its

“worst financial crisis since the Second World War”,

with a £57 million budget gap in the coming year.

In those bleak circumstances, the council held an emergency budget meeting last month, where the finance director, Mel Creighton, publicly addressed the chamber for the first time. She said:

“We have gone as far as we can go—the next decisions we make will be very difficult ones.”

The city has exhausted its reserves; it has just £16 million remaining. If those reserves were used for day-to-day services, they would last about a fortnight. After that, there would be nothing left.

[Luciana Berger (Liverpool, Wavertree) (LD)]

I commend the hon. Gentleman for securing the debate on behalf of the city and people of Liverpool. Does he agree that that council meeting was an extraordinary example of people from across the city of all political persuasions coming together to back a motion that went to the council that said they wanted an urgent meeting with Government Ministers to set out the situation? We have that opportunity today to say that, party politics aside, Liverpool will be unable to continue in the current vein if something is not done urgently to address the serious situation.

[Stephen Twigg]

The hon. Lady’s intervention precisely anticipates my next paragraph.

At that unprecedented meeting, members of the Labour, Liberal Democrat, Green and Liberal parties agreed unanimously on a call for urgent action from the Treasury. Liverpool MPs, led by my hon. Friend the Member for Garston and Halewood (Maria Eagle), have echoed the call for an urgent meeting with the Secretary of State. To echo the hon. Member for Liverpool, Wavertree (Luciana Berger), I ask the Minister whether the Government will meet Liverpool’s Mayor, MPs and councillors as a matter of urgency to look at ways in which the Government can help to address Liverpool’s perilous financial situation.

There is an inherent unfairness in the way that local government funding is allocated. The Government use core spending power as a measure. Their figures show that had Liverpool been subjected to only the average reduction in support for all authorities, it would be £77 million a year better off. Instead, since 2010 there has been a dramatic reduction in Liverpool City Council’s spending power while the spending power of other authorities has increased. For example, Surrey County Council’s spending power has increased by £65 per household in the same period.

In authorities such as Liverpool—and next-door Knowsley, Sir George—with a high level of deprivation, a large proportion of properties are typically in the lower council tax bands, for which higher Government grants have compensated. Since 2010, however, support from the Government has been reduced as they have sought to offset austerity by allowing local authorities to raise more taxation locally. The difficulty is that 60% of dwellings in Liverpool are in the lowest council tax band, whereas the national figure is about a quarter. Liverpool’s council tax base is further reduced by the number of dwellings that qualify for discounts and exemptions.

If Liverpool’s tax base were comprised of the same proportion of households in each council tax band and the same proportion of households that qualify for discounts and exemptions as the national average, the city council estimates that it would generate more than £100 million extra in council tax every year. Surely we need to address that issue of fairness. Will the Government seriously consider the Mayor of Liverpool’s proposal for a royal commission on local government funding to ensure that a fair funding formula can be adopted across the country?

Despite all that, the council has managed to continue to prioritise services for the most vulnerable in our community. In the last year it has spent £12 million on support to help prevent people becoming homeless and on assisting rough sleepers. It has spent almost £3 million on the citizens support scheme that it set up to help residents in short-term crisis to meet their needs for food and other essential items. That has provided a lifeline for some of the city’s most vulnerable residents after the abolition of the discretionary social fund. The mayoral hardship fund continues to provide vital support for some of the city’s most vulnerable people. Spending on discretionary housing payments, which support people struggling to pay their rent, has gone up by 12%.

I pay tribute to Mayor Joe Anderson and councillors from all parties for taking action to protect the most vulnerable families who have been left struggling and worrying about how they will pay for essentials. The support that the council has been able to provide stands between many families and destitution.

I also thank the vibrant voluntary and community sectors, including the Merseyside Law Centre, formerly Merseyside Welfare Rights; St Andrew’s Community Network, which is based in the constituency of my hon. Friend the Member for Liverpool, Walton (Dan Carden); and the Alt Valley Community Trust. I volunteer monthly at the north Liverpool food bank at St John’s church in Tuebrook, so I see the great need in our communities and the fantastic role that the voluntary and community sectors play, alongside the city council, in seeking to protect some of the most vulnerable.

[Luciana Berger]

The hon. Gentleman is making an impassioned case, for which I thank him. Further to his important acknowledgement of the contribution that voluntary and charitable organisations make, I particularly commend the work of Liverpool Charity and Voluntary Services, without which many small organisations would not have been able to pursue their ambitions. At a time of decreasing funds, LCVS has gone above and beyond to support many small organisations to have the infrastructure, resources, tools and expertise to deliver vital local services.

[Stephen Twigg]

The hon. Lady is absolutely right to put on the record the amazing contribution that LCVS makes, as do similar councils in other parts of the country. In the 12 years that I have been in Liverpool, I have been struck by the strong sense of community and the sorts of organisations that come out of some of the most socially and economically deprived communities, some of which I mentioned. I can imagine how much worse the impact of those cuts in Government support would have been if it were not for the great work done by LCVS and some of the other voluntary organisations to which I referred.

The reality is that the council faces a near-impossible challenge: when services are needed most, it has fewer resources with which to respond. The Association of Directors of Children’s Services calculates that the number of statutory responsibilities for local authorities in children’s services has gone up by something like 50% since 2011. We need an urgent review of the financing of statutory services to ensure that they are adequately resourced, because otherwise there is a real risk that we will fail the most vulnerable people again.

The city council is pioneering new technologies to combat climate change. Liverpool has set the bold aim of becoming the world’s first climate-positive city by the end of next year, which would mean the city would remove more carbon dioxide from the atmosphere than it emits each year. The council is working alongside the Poseidon Foundation to help offset its carbon emissions by incorporating blockchain technology into the day-to-day operations of the city council. Reflecting the challenges of climate change, the council recently declared a climate emergency. It is crucial that the Government work with the council and local community to ensure that the funding and support is there, so that we can respond fully to the scale of the climate emergency.

The city council has also been innovative and ambitious in seeking to deal with the desperate financial situation that it faces—for example, it has been pioneering in its Invest to Earn strategy, generating income through investments in the private sector that can then be ploughed back into support for local services. The council has relied heavily on the Public Works Loan Board for low-interest loans to invest in the purchase of assets that can bring in new revenue streams and grow the local economy. It is very concerning that the Treasury has now announced an increase of an entire percentage point in the interest rate for the Public Works Loan Board. The city council is doing all it can to mitigate the impact of austerity, but the interest rate increase will make that task more difficult.

Decisions made by Governments since 2010 have resulted in poverty becoming more entrenched for many of my constituents. We have now had the latest English indices of multiple deprivation, and Liverpool ranks third. Almost a quarter of the population of Liverpool live in income-deprived households, and around a third of children are growing up in poverty. The high level of need, which results in demand for services, cannot be met solely by a council tax base that, as I have said, is low. We desperately need a fairer funding deal.

Personal Independence Payments (Liverpool Wavertree)

Debate between Luciana Berger and Stephen Twigg

Tuesday 1st July 2014 Westminster Hall

[Luciana Berger]

I thank my hon. Friend for his emotional contribution, which highlights the challenge facing too many of our constituents who come to our constituency surgeries to highlight the process they have had to go through and the weeks and often months of waiting. That is not acceptable.

I was talking about the impact specifically on cancer patients. It is appalling that we should treat them in this way, which is why I am delighted to have secured this debate to ask the Minister to explain what he and his Department will do about it.

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

I congratulate my hon. Friend on securing this debate. Earlier this year on the Floor of the House, I raised the cases of two young women whose cases were brought to me by CLIC Sargent. They both have cancer and had been waiting seven months. One secured her PIP after my intervention. The other secured it because the Minister intervened when I raised the matter at DWP questions. The reality is that most people do not know that they can go to their MP, or that their MP can raise it with the Minister. Do we not need to sort out the system?

Building Schools for the Future (Liverpool)

Debate between Luciana Berger and Stephen Twigg

Wednesday 30th June 2010 Westminster Hall

[Stephen Twigg]

I certainly concur with everything that my hon. Friend says. As part of the programme, a number of the schemes—in Sefton, as well as Liverpool—seek that collocation between existing special schools and mainstream schools. That can have some important educational benefits, but also obvious social benefit for students in both sets of schools. I thank him for taking the opportunity to raise that point.

As well as the business links between the schools and particular local employers, Building Schools for the Future can also support regeneration in communities, many of which suffer from high levels of long-term unemployment. An obvious way that happens is through the programme’s immediate economic impact on the construction industry. The Minister may be familiar with a report published by the UK Contractors Group last year entitled “Construction in the UK economy: The Benefits of Investment”. It estimates that every £1 the Government invest in building a new school has a net cost of just 44p to them, but a wider total economic benefit of between £3.80 and £5. In this economic period, when we have come out of recession but have a fragile economic recovery, a programme that gives such a boost to the local economy and the construction industry is surely a worthwhile one with which to continue.

Liverpool estimates that Building Schools for the Future wave 6 will create at least 200 new apprenticeships for local people, and I am sure that the same will apply in Sefton and neighbouring authorities that seek to benefit from the programme. Building Schools for the Future can prepare the young people in schools today for the jobs of tomorrow and provide much needed jobs and apprenticeships today for young people and older people in our local communities.

The Government have been clear since the election that they are reviewing Building Schools for the Future—indeed, there were rumours that we could expect an imminent announcement on its future direction. I would like clarification from the Minister on, first, the time scale for the review. Clearly, the uncertainty hanging over schools—not only those in Liverpool—is itself damaging, so they would like a sense of how quickly decisions will be made. Secondly, what are the criteria against which central Government will make the decisions, and, thirdly, what opportunities will exist for MPs, local authorities and schools to make representations as part of the review? I would like to bring a delegation from Liverpool to meet the Secretary of State at his earliest convenience to make the case for Liverpool’s Building Schools for the Future programme.

I know from previous encounters, when we were on opposite sides of the House to those we are on now, that the Minister is personally deeply committed to high educational standards in all schools. I hope that he will take the opportunity today, first, to congratulate the schools and students in Liverpool on their fantastic progress over the past 13 years; secondly, to recognise the considerable hard work put in by the schools and the city council to develop their Building Schools for the Future plans; and, finally, to give us some optimism that that work has not been done in vain.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

I thank my hon. Friend for securing today’s debate. It is a timely debate; I have a meeting on Friday in my constituency with six schools that are expecting building work later this year under Building Schools for the Future wave 6. It is not only with the heads and their chairs of governors, but with members of the local business community, who, as my hon. Friend highlighted, are very supportive of the scheme. Does he believe, as I do, that every teacher deserves to teach, every student deserves to learn and every parent deserves to know that their children are being taught in an environment fit for the 21st century? It will be a travesty if all the Liverpool schools in Building Schools for the Future wave 6, including the six in my constituency, are not built later this year.

[Stephen Twigg]

My hon. Friend makes the case powerfully and eloquently on behalf of all the schools in her constituency that are part of the programme. As I said at the beginning, there is a vision here. It started with Ministers in the previous Government but was based on the evidence of schools such as the ones my hon. Friend cites, which is evidence that very poor buildings hold back schools that, in many ways were doing well and making great progress, but that could become schools that do excellently, if they had the necessary facilities and buildings.