Mark Pawsey
Main Page: Mark Pawsey (Conservative - Rugby)
Mark Pawsey (Rugby) (Con)
Did Advantage West Midlands not waste a lot of taxpayers’ money when Ericsson was persuaded to go to Ansty business park—a completely unnecessary move?
Mr Cunningham
The hon. Gentleman has his facts wrong. It was Ericsson that wasted public money, because it misled everyone—including the Tory council in Coventry—into thinking that it was there to stay. The hon. Gentleman must not distort the facts.
The Secretary of State has sent a circular out to local authorities, but we want to know whether the Kings Hill and Keresley housing project will go ahead. I asked the Minister to clarify that last week, and I was told that Coventry council would be allowed to settle the matter. However, when the Tories were in opposition, they said that one of the first things that they would do was cancel that project, because it was being built on the green belt—which the hon. Member for Rugby (Mark Pawsey) knows something about, as Warwick district council is the planning authority and has been passing the buck.
If we are talking about the 1980s, let us remember that manufacturing in the west midlands was decimated, to say the least. In Coventry, we lost thousands of jobs every week. Are we going back to that? That is what the Government’s proposals will mean. The Minister talked about council house building being the lowest since the war, but I do not remember many council houses being built in Coventry in the 1980s. I certainly remember that council houses were sold off and not replaced. The Minister has a lot of explaining to do there.
The other area of concern is what will happen to the voluntary sector especially, and to the much vaunted public sector, which the Government keep on about attacking. How much funding can the voluntary sector expect, if funding to the public sector is reduced? As in the 1980s, the public sector will be the whipping boy for the measures that the Government want to take. I could see their strategy when they were in opposition. They went on about gold-plated pensions and big salaries for chief executives. That is fair enough—we have to do something about it—but it obscured and masked the fact that many people in local government are on low pay, and they are the people who will be attacked. I was in contact with Coventry city council today. The real impact, by the way, will not be known until October or November, because the Government themselves do not yet know which cuts they are going to inflict—they have not worked out the details—not only in Coventry but in the rest of the country.
The Government blame us for the economic crisis, but I remember when it broke. The Conservatives thought that we just needed to bail out Northern Rock and that the crisis had just happened in this country, but it actually happened with Lehman Brothers in America. How any British Government can control what goes on in the American economy defies logic. It was only later that the Conservatives worked out a strategy. Incidentally, the present Governor of the Bank of England went along with the economic stimulus—the same man now advising the Government to go down the road of wholesale cuts. We had a programme to do that over four years, but theirs is a knee-jerk reaction. In other words, they have panicked, they are not in command of the economy and they do not have a strategy to get the country out of this situation.
This is a typical Tory ploy. In the ’80s, they used the Labour Government of the ’70s to try to justify some of their policies, but they missed something out. Before that Labour Government of the ’70s, we had a Tory Government. Do we remember the three-day week? Do we remember the OPEC crisis when petrol prices went through the roof? The American economy had problems because the American public reacted to the prices at the petrol pump. We then inherited, as a minority Government, a previous Tory Government’s problems, and I predict that, in the future, we will be picking up the pieces once again for the damage that these people have done.
Mark Pawsey (Rugby) (Con)
It is a great pleasure to follow the right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) and to be in the Chamber for the maiden speeches of my hon. Friends the Members for Dudley South (Chris Kelly) and for Wolverhampton South West (Paul Uppal). Their speeches distinguished themselves from those of the Opposition, who seem to be seeking to renew some of the battles of the past 13 years, and seem to have failed to recognise that the world has moved on.
It is appropriate that we are discussing local government funding in the context of the Budget debate of the past few days, which, it is important to remember, was an emergency Budget debate that arose as a consequence of the severity of the economic position in which the country finds itself—even worse than was expected. I want to consider why the local government funding debate is necessary and what other sectors have done already, and I want to put in perspective what local government is being asked to do and how it may do it. It is entirely appropriate that local government should make its contribution to tackling the budget deficit. Labour has left behind one of the largest budget deficits in Europe, and we are borrowing one pound for every four that we spend, increasing our national debt by £3 billion a week. The crisis in the eurozone shows that the consequences of not acting are severe, in terms of higher interest rates, sharper rises in unemployment and potentially even the end of the recovery. Those issues are recognised in the country.
It is now seven days since my right hon. Friend the Chancellor stood at the Dispatch Box and gave his Budget statement. As a new Member, I have had to come to terms with the massive amount of e-mail and letters that Members receive. On the Budget, I have had plenty of correspondence—from think-tanks and lobby groups—but since last Tuesday I have had very little from the electors in my Rugby constituency. The reason is that there was little in the Budget that electors were concerned about or surprised about—despite the protests of Labour Members, who do not want to hear about the true state of the public finances. The people in the country understand and support the measures that we need to take. These measures are necessary as a result of past mistakes, and the coalition Government have been forced to take strong and decisive action to sort out the deficit and ensure that confidence is not lost in UK markets. The public understand that the action being taken is unavoidable and that Britain must build a new economic model founded on the principles of freedom, fairness and responsibility.
The private sector has already borne the brunt of the recession, and it is important that this responsibility is shared by all of us. The private sector endured job losses and business closures during the dying days of the previous Government. Businesses have been forced to make savings, to cut back and to make redundancies, so it is only right that this pain is shared by all, because we are all in it together.[Laughter.]
I ran a business for 25 years, and I know that no matter how tightly run an organisation is, there are always additional cost savings that can be made. Here we are looking at additional cost savings of between 1% and 2%; they are there if people look hard enough. It is interesting that the Local Government Association briefing document issued today makes
“a comprehensive and open offer to Government to work with them to… reform the state to achieve the required savings”.
That shows that there is clear acceptance of the need for savings and a desire to get on with them.
There are many examples of current public sector waste. The Minister told us about some of them earlier when he spoke about tranquillity rooms, cappuccino machines and Pravda-style magazines. An article in The Sunday Times of 13 June showed that local government still “doesn’t get it”, as it is advertising well-paid non-jobs. Brighton and Hove city council is recruiting four new “strategic directors” on £125,000 each; their job is to “look outwards”. An “internal communications change consultant”, the article also mentioned, is being recruited in Sheffield at a cost of between £380 and £400 a day. A “community development co-ordinator” in east London—
Mr Kevan Jones
I am fascinated by the hon. Gentleman’s examples, but should he not be telling members of his own party in local government to practise what they preach, as most of the councils concerned are Tory and Liberal Democrat councils?
Mark Pawsey
The message is going out loud and clear: this kind of waste cannot go on and should not happen. It is entirely right for the Government to conduct a full review of local government finance and right that that review should restore to our councils a general power of competence. For far too long, councils have been dictated to by central Government. Reference has already been made to the estimate that only 5% of local government spending is controlled by elected councils. That means that of the £7,000 a head spent on local public services, only £350 is under local democratic control.
I was a councillor for five years, and in that time I became increasingly frustrated with Government interference, much of which prevent my colleagues and me from doing our job. It is for that reason that local government has often been described as a delivery arm of central Government. We often took decisions not because they were the right ones for our community, but because the Government had told us that that was what they wanted us to do and they applied pressure through directives, centrally set targets, inspection regimes and the final sanction of taking away grants. It is refreshing for all involved in local government—both officers and councillors—that the coalition Government plans set out to provide councils with the freedom and the resources to concentrate on local priorities and deliver front-line services by stopping the ring-fencing of central Government grants.
Tom Blenkinsop
Does the hon. Gentleman regard the recent Department for Work and Pensions policy of “on yer bike” as a centrally driven target?
Mark Pawsey
It is not centrally driven at all.
The changes will be made by local authorities and I believe these changes, restoring freedom to local authorities, will encourage more people to put their names forward for the role of councillor. The previous Labour Government presided over more than a decade of economic prosperity during the ’90s and the early part of this decade—and they should have been taking advantage of that; as we said, they should have been mending the roof while the sun was shining. They failed to do so, and it falls to the coalition Government to implement the efficiency savings, to cut the quangos and to reduce the regulatory burden, as is so desperately needed.
According to a PricewaterhouseCoopers report entitled “Mapping the Performance Landscape”, commissioned by the Department for Communities and Local Government in 2006, it was estimated that a typical council spent £2.6 million a year in reporting performance information to central Government. The previous Government also failed to heed the warnings provided by the very councils that they so tightly guarded. In a comprehensive area assessment published in January 2010, the councils were warned that
“the burden of inspection has not been reduced as a consequence of Comprehensive Area Assessment”,
and
“nearly two-thirds of respondents to the latest CAA watch survey disagreed or strongly disagreed that the burden of inspection was being reduced as a consequence of CAA.”
It is time that central Government stopped smothering local councils and provided them with the level of authority they need to get on with their role of serving and responding to the residents who elect them.
I believe that Labour Members are overstating the effect of the changes that local government is being asked to make. We should remember that this is an emergency Budget in which local government is being asked to contribute £1.166 billion-worth of savings to the £6.2 billion of cross-government savings for 2010-11.
Mark Pawsey
I am running out of time, so I will proceed, if I may.
Removing restrictions on how local authorities spend their money is a vital part of allowing them to deliver efficiencies and focus their budgets on front-line services. I refer again to the statement released by the Local Government Association, which understands the need for the plans that the Government are introducing.
In some areas, certain groups have had massively more than their fair share of funding, so it is only right that, during such times as these, they should reduce the burden. Let me cite the example of the £30 million that will be saved by ceasing the Gypsy and Traveller sites grant. Here is a relatively small community that has benefited hugely and, in my view, disproportionately from public expenditure and is a matter of great concern to the settled community in places such as Bulkington in my constituency. By way of showing that further savings can be made, I refer to my home Rugby borough council; by not replacing its chief executive, it is enabling savings of more than £100,000 a year. Another example is Warwickshire county council, which is estimated to have made savings of £19 million in value-for-money savings in 2008-09. So there are early signs that the councils themselves recognise the need for radical reform, which needs to begin immediately, and they are tackling the challenges posed by the new Government.
In addition to seeking savings in expenditure, the Government are taking steps to minimise the effect of council tax on individuals and businesses, and are providing support for hard-working families through a council tax freeze. They have demonstrated immediate support for front-line services by protecting £29 billion of formula grant. Unlike the Labour party, the coalition has listened to advice from those affected by poor over-regulation.
In conclusion, I believe the proposals on local government finance are reasoned and proportionate, and appropriate in difficult economic times, and I shall support the amendment.