Local Government Pension Scheme

Debate between Marcus Jones and Edward Leigh

Monday 24th October 2016 Westminster Hall

[Mr Jones]

I would like to reassure the hon. Lady that the changes are in no way intended to diminish the role of individual pension funds or the people who represent members. [Interruption.] She is commenting from a sedentary position, but we will have to agree to disagree on that point, bearing in mind what I have said previously.

[Sir Edward Leigh (in the Chair)]

Apparently, you can wind up, Mr Blackford. We would not want to miss your dulcet tones.

Oral Answers to Questions

Debate between Marcus Jones and Edward Leigh

Monday 18th July 2016 Commons Chamber

[Mr Jones]

We have to realise that there is a significant structural shift taking place in retailing, with many people now choosing to buy their goods online and in out-of-town shopping centres, rather than on the high street. We need to make sure, though, that the high street is fit for the 21st century. The Future High Streets Forum, which I jointly chair, is looking at how we restructure our high streets to bring in new investment, and particularly at how we bring more starter homes into our town centres so that we can start to really rejuvenate and regenerate places that offer something that out-of-town shopping and shopping on the internet just cannot compete with.

[Sir Edward Leigh (Gainsborough) (Con)]

7. What steps his Department is taking to support homeless people.

--- Later in debate ---

[Sir Edward Leigh]

Supporting homeless people will require real resources given to real people, such as the £115 million promised to the homeless charity Caritas Anchor House. May I encourage the Minister—and, indeed, the Secretary of State—to avoid, as he comes into his new responsibilities, just changing the deckchairs in different parts of Whitehall? In this context, will he please ditch his policy, or that of his predecessor, to impose an elected mayor on Lincolnshire?

[Mr Jones]

I am sure that my right hon. Friend the Secretary of State has heard my hon. Friend’s question about the potential, or not, elected mayor in Lincolnshire. With regard to homelessness, it is always good to hear about how charities such as the one that he mentioned are using innovative ways to tackle old problems. Providing support to help people to recover from homelessness is extremely important. It is absolutely key that we help people in that position to start to rebuild their lives. That is why we are investing £20 million in tackling rough sleeping and £100 million in move-on accommodation from hostels and refuges.

Local Government Funding

Debate between Marcus Jones and Edward Leigh

Wednesday 3rd February 2016 Westminster Hall

[Mr Jones]

I have got very little time, but I have made my views on that point very clear to the House in recent months.

Hon. Members will have the chance to get involved in the process of business rate retention in the coming months. The Government do not underestimate the challenges. Local government representatives consistently tell me, as they told my predecessors over many years, that greater certainty about their income over the medium term would enable them to organise more efficiently and strategically, and put their safety-net reserves to more productive use. This settlement will for the first time ever offer a guaranteed budget to every council that desires one and can demonstrate efficiency savings for the next year and every year of the Parliament. Four-year settlements will give local government more certainty and confidence. Councils will also be able to spend 100% of capital receipts from asset sales to implement cost-saving reforms.

As we move to a world of full localisation of income, it does not make sense to talk simply about Government grants, as a number of Opposition Members did. As colleagues know, the revenue support grant will be phased out by 2020, but local government will still spend significant sums of money. Therefore, it makes more sense to talk about the wider measure of council spending power, which we improved after listening to the Public Accounts Committee and the Communities and Local Government Committee. We no longer include the NHS-scored better care fund or the ring-fenced public health grant in the calculation, since councils cannot spend those funds as they wish.

Overall, our proposals are fair. Councils’ core spending power will remain virtually unchanged over the Parliament—it will go from £44.5 billion in 2015-16 to £44.3 billion in 2019-20.

[Sir Edward Leigh]

Will the Minister give way on the issue of rural areas?

[Mr Jones]

I am sorry, but I have not got time to give way again. There are a number of things I need to talk about, but I will come to the issue of rural areas in a moment to address my hon. Friend’s earlier point.

Real-terms savings of 6.7% are required over this spending review period, compared with the 14% savings announced in the 2010 spending review. Even the Institute for Fiscal Studies recognises that that is substantially lower than the spending reductions that councils had to deliver between 2009-10 and 2015-16.

On adult social care, we responded to the clear call from all tiers of government and many colleagues in the House to recognise the importance of the growing cost of caring for our elderly population. The Local Government Association and the Association of Directors of Adult Social Services asked for £2.9 billion by 2020 as a contribution to the cost of social care. In the settlement, we make up to £3.5 billion available by that year. It will be distributed fairly to local authorities with social care responsibilities. There will also be a package of support for councils working with the local NHS to address pressures on care, a dedicated social care precept of 2% per year, and a fund of £1.5 billion by 2019-20 to complement the new precept. We recognise that councils providing services in rural areas face additional costs, so we have proposed that the rural services delivery grant should be quadrupled from £15.5 million this year to £65 million by 2019-20 to address those issues.

Let me cover one or two of the points that the hon. Member for Leicester West made. She and a number of other Opposition Members spent a lot of time talking about the effect that the reduction in central Government spending will have on local government. They have very quickly forgotten that their election manifesto clearly set out a path for reducing local government spending. They may wish to take that into account. The core spending power measure is the most accurate way of measuring councils’ expenditure. Leicester has a core spending power of £2,003 per household this year, compared with the English average of £1,829, so I hope that reassures the hon. Lady that Leicester is not getting a bad deal.

On the point made by the hon. Member for Croydon North (Mr Reed) about council tax, the Conservative party will not listen to any lectures from the Labour party. Council tax is 11% lower in real terms than it was five years ago. I remind the hon. Gentleman that council tax doubled under the Labour Government between 1997 and 2010, so the Labour party clearly says one thing in opposition and does something else in government.

We recognise the challenges that have been raised today and those that lie ahead. This is a time of big opportunity and expectation for local government reform. We are moving to a world long desired by local government, in which councils are financed by local sources. Whitehall’s apron strings will be cut. Central and local government are decisively addressing social care pressures, and we are beginning to design long-term integrated care and lasting local solutions.

I know that these changes require a lot of hard work from councils, but changes always do. However, I am confident that, after we have carefully considered the consultation responses before announcing the final settlement, and after we have undertaken a further period of meaningfully engaging and working with local government to design a 100% business rates retention scheme, hon. Members will agree that a better future of proper local control is becoming a reality at last.