Local Government Funding

Michael Dugher Excerpts

Tuesday 30th November 2010 Westminster Hall

[Mr Watts]

We would hope, in relation to any massive cuts, that some damping would be introduced to ensure that local authorities do not face the full loss of grant, as they did under the previous Tory Government, who cut millions of pounds from local authorities overnight. The previous Labour Government, when they made changes, put in mechanisms to ensure that local authorities did not suffer in the same way as they had done with the Tory cuts. I hope that the situation will be fairer, that there will be some damping and that local authorities will have an opportunity to adjust their budgets.

[Michael Dugher (Barnsley East) (Lab)]

I am grateful to my hon. Friend for securing this important debate and for the work he has done over many years on behalf of local government. I wonder whether he is aware of a question that I raised yesterday at oral questions to the Secretary of State for Culture, Olympics, Media and Sport. Along with a number of other hon. Members on both sides of the House, I raised the issue of the threat of library closures in many communities because of the cuts to local authorities. I was trying to explain to the Under-Secretary of State for Culture, Olympics, Media and Sport, the hon. Member for Wantage (Mr Vaizey), that the financial realities are different in different parts of the country. As my hon. Friend has said, in an area such as Barnsley, which has very low council tax receipts but high social needs, the pressures on the budget are hugely disproportionate compared with more wealthy areas in the south. The Minister replied that councils needed to show “a little imagination”, which I think demonstrates—

[Mr Clive Betts (in the Chair)]

Order. Interventions are supposed to be brief and to the point.

[Michael Dugher]

Does my hon. Friend agree that that shows how oblivious Ministers are to the financial realities in areas such as Barnsley and St Helens?

[Mr Watts]

I do. I am pleased that the Minister here is not the Secretary of State, because it is clear from the Secretary of State’s comments that he has no idea of the implications of the cuts he is advocating. The idea that the cuts can be dealt with through efficiency savings or by councils using their imaginations as they have not done in the past is ridiculous. I point out that many of the authorities facing the biggest cuts, including my own, are the most efficient and effective already.

My council is a five-star council that provides excellent education, social services and other council services. It has kept its council tax below inflation rates for the past 10 years, and it runs an effective partnership with the voluntary and private sectors, yet it faces up to £12.7 million in cuts in 2011-12 and up to £24 million in cuts by 2014-15, on top of a previous cut of £5.6 million from the working neighbourhoods fund. We also face the potential loss of enterprise growth funds, which have helped regenerate my area; the money is spent in partnership between the private, public and voluntary sectors. Clearly, it is not inefficient councils that face the biggest problems but councils that are well run and well managed and provide good services.

As colleagues and I have said, the Government’s record on the matter is not good. So far, cuts have hit the most deprived communities the hardest. They have been front-loaded, and the cuts to the working neighbourhoods fund have hit the most deprived communities in Britain. The record so far is not good.