Local Government Finance

Debate between Michelle Donelan and Tom Pursglove

Wednesday 7th February 2018 Commons Chamber

[Tom Pursglove (Corby) (Con)]

It is a pleasure to follow the hon. Member for Stoke-on-Trent Central (Gareth Snell), not least because he, like me, has local government experience in a shire county setting.

Rather like my hon. Friend the Member for Wellingborough (Mr Bone), it would be impossible for me not to speak about the situation at Northamptonshire County Council. It has been a very difficult week for local government in the county. I want to preface my remarks by saying that the vast majority of the staff at Northamptonshire County Council work tirelessly—day in, day out—on behalf of local people to deliver key public services, and no blame whatsoever lies with them for the situation in which we find ourselves.

It is no secret that we, as the seven Northamptonshire MPs, have been exceptionally concerned about the situation at Northamptonshire County Council for some time, and I appreciate the steps that the Secretary of State has taken to try to address those concerns. For example, there is the appointment of the inspector, who is currently conducting a thorough piece of work looking at what has gone wrong. As I said in the urgent question yesterday, I would welcome an interim recommendation from the inspector as quickly as possible, so that we can try to provide certainty for local people.

What is so frustrating is that, time after time, when Members of Parliament asked whether the county council would be able to balance its books, we were told, “Absolutely. You have nothing to worry about.” Such requests for clarification were made as early as last March and April and as recently as December. The responses were unequivocal—senior cabinet members at the county council were unequivocal in giving such guarantees—but we are where we are.

I believe that the concerns we have raised have been vindicated by the issuing of the section 114 notice. It is not just Members of Parliament who have raised concerns; 21 back-bench councillors now say that they have no confidence in the leadership. The independent LGA report is damning. It states that

“there is a very short-term focus on solving the financial problems of today… There is no financial strategy to deliver a sustainable position for the Council… The Council has a poor record of delivering its approved budget… Key decisions are not always taken in the understanding of the financial implications, risks and options… Financial information is not presented clearly and transparently… Decisions taken by the Cabinet need greater transparency… Some portfolio holders readily accept the information they are given without systematic and robust challenge.”

Those are damning findings. It is no secret that the inspector who is currently carrying out the thorough inspection of the county council is equally concerned.

[Michelle Donelan]

I echo my hon. Friend’s point about the governance of councils being important. Does he agree that structure is also important and that unitary authorities such as Wiltshire Council can prove very efficient?

[Tom Pursglove]

I am grateful to my hon. Friend for that intervention. I am keen to return to that point later in my remarks.

It is not good enough for cabinet members simply to shrug off all responsibility and try to apportion blame elsewhere, because there has to be accountability. The question we have to ask is this: why is it that many local authorities in similar circumstances—with similar settlements and populations—have managed to handle the challenges of recent years much more effectively than Northamptonshire County Council has? It would also be wrong to suggest that Members of Parliament and members of the Government have not tried to do our bit to help with those challenges, but being able to help relies upon the frank exchange of information and an honest dialogue. What has happened suggests that that has not been the case. At every opportunity, we have tried to help.

I welcome the commitment to a fairer funding review. It is a little rich for Opposition Members to talk down a fairer funding review, because we did not have one in 13 years of Labour government. Actually, Northamptonshire has been chronically underfunded, in local government terms, under Governments from both sides; we do not do well out of funding formulas relative to more metropolitan areas. I hope that the local government finance review will help address some of those anomalies.

I have talked regularly in the House about the cost pressures created for Northamptonshire County Council by unaccompanied asylum-seeking children. I welcome the Secretary of State’s announcement in December of an additional £18 million to tackle those cost pressures, and I hope that the county council will bid for some of the money; it will be entitled to some of it, because the cost pressures are acute.

It is also vital to note that the core spending power in the period up to 2020 is up by 7.6%, which is worth £31.1 million more. Members of Parliament have raised concerns, but the Government have also taken steps to help tackle directly some of the challenges. It is clear to me, as night follows day, that a fairer funding review in itself will not solve Northamptonshire County Council’s problems. I take absolutely no pleasure in saying any of this, but I will not moderate my remarks for party political convenience, because my primary concern in all this is continuity of service for the most vulnerable of my constituents.

Where do we go from here? We obviously need to wait for the inspector’s findings. I would like to see an interim report as soon as possible, because we need that certainty. I suspect that commissioners may well need to be appointed, because the failures are systemic and need to be dealt with robustly. We need to have a serious conversation in the county about the future structure of local government. To me, it seems clear that a two-tier model just is not financially viable in the current climate.