(8 years, 10 months ago)
Commons ChamberMy hon. Friend is absolutely right to say that local government leaders should not be directed by those on the Front Bench. If they feel that something can be done in a deal with the Government that will be beneficial to the community, they should do it. Equally, it is our duty to express opposition to the way in which this is being imposed on local government. I have spoken to council leaders in south Yorkshire, where my hon. Friend is a distinguished Member of Parliament, and they have told me that this deal is being imposed on them.
The second reason that the Bill is a pretence at devolution involves the wider context of local government finance. In a comprehensive Bill, there should surely be clauses regarding the way in which local government can be funded to make it more autonomous and less dependent on the centre, but the reverse is the case here. There should also be clauses regarding fair funding, as the cuts in recent years have been concentrated on the urban areas. We know that the Chancellor manipulated the formula for the benefit of certain areas in a way that was politically beneficial to the interests of the governing party.
The truth is that the Secretary of State is not devolving financial power, or any power. He is delegating Treasury cuts. What the Government give in pennies, they take back in pounds. Since 2010, local government in England and Wales has lost 40% of its funding. Now every children’s centre, every fire station, every care home, every nursery, every pensioner waiting for a bus, every youngster looking forward to attending a youth club on a Friday night and everybody of any age whose horizons are widened by public libraries—they and many others are anxiously waiting not for this Bill but for 25 November, when the Chancellor of the Exchequer will announce his spending review.
The Tory-led Local Government Association is expecting further cuts to local authorities of up to an additional 40%. That is on top of the cuts that have already taken place. Cuts on that scale make a mockery of the Secretary of State offering further devolution. This is the delegation of cuts, not the devolution of powers.
I have already referred to the wise words of the hon. Member for Altrincham and Sale West in that excellent journal, The Daily Telegraph. It has to be said that that paper has been on a roll this week. Yesterday, a report by its political editor stated:
“As many as four Cabinet ministers, including Philip Hammond, the Foreign Secretary, and Iain Duncan Smith, the Work and Pensions Secretary”,—
and two others, unnamed—
“have so far refused to submit to the Treasury plans to cut their departments by as much as 40 per cent.”
I put it to the House that the anti-austerity case that my hon. Friend the Member for Hayes and Harlington (John McDonnell) has been pursuing has now extended to members of the Conservative Cabinet. It seems to have wider cross-party support than was first feared. But wait a minute! That same article reports that the Business Secretary and the Justice Secretary are “enthusiastically” preparing for massive cuts to their Departments. The House is entitled to ask what side of this dividing line our Secretary of State stands on. There is no mention of him in the article. Is he fighting the corner for those fire stations, libraries, care homes, students and nurseries? Or is he, like the Business Secretary and the Justice Secretary, “enthusiastically” anticipating cuts on a historically unprecedented scale?
In giving way to the hon. Gentleman, I invite him to tell us whether he supports the cuts that have already taken place in his local authority, as well as those that are going to take place in the next three years. I am sure that his local paper would be interested to hear this views on that.
I notice that the hon. Gentleman did not answer my question.
The Bill ought to include reference to proper financial autonomy and to fresh financial arrangements for local government. Anything that pretends to offer devolution with one hand while retaining the power to control finances with the other is nothing more than an iron fist in a velvet glove.