Local Government Funding

Mike Amesbury Excerpts

Wednesday 28th March 2018 Commons Chamber

[Sajid Javid]

I am pleased that my hon. Friend has raised that point. A moment ago, I talked about how Labour had brought our country to the brink of bankruptcy and how, given the chance, it would do it all over again. She has just illustrated that point. All that Labour knows is borrow, borrow, borrow and spend, spend, spend, and it wants hard-pressed taxpayers to pick up the bill. She mentioned Labour’s garden tax. It is interesting that the shadow Secretary of State did not want to dwell on that, but it appeared in Labour’s 2017 manifesto, and it was calculated at the time that it could result in a charge of £3,700 a year for the average home, which is roughly £2,000 more than the current band D council tax. That reminds me that the hon. Member for Derby North (Chris Williamson) was recently sacked from the shadow Front Bench for exposing Labour’s plans to double council tax. So the facts are out there, and my hon. Friend is absolutely right to raise that point.

[Mike Amesbury (Weaver Vale) (Lab)]

Will the Minister give way?

[Sajid Javid]

I will give way in a moment.

It has taken titanic efforts to turn the situation round and rebuild our economy, with both central and local government having to find new ways of delivering essential services while delivering value for money. The country cannot afford a return to Labour’s ways of spend, borrow and bust.

--- Later in debate ---

[Sajid Javid]

The hon. Lady gives me the opportunity to highlight Labour’s tax plans once again. She says that Labour is not considering a land value tax, but perhaps she is not aware of what Councillor Sharon Taylor of the Local Government Association Labour group said just a few days ago, on 20 March. She said that she would like to see increased freedoms for councils from day one of Labour Government and that this should include

“the ability to look at local taxes such as land value tax”

and a tourism tax. Labour’s plans are all about tax, tax, tax. That is the only thing it knows.

There is no doubt that local authorities are stepping up to the challenges that they face and demonstrating real ambition and creativity to drive efficiencies at the same time as protecting frontline services. Let me share a few examples with the House. Suffolk County Council has used advanced technology to understand what is behind the service pressures generated by troubled families. Since that work began, the council has saved some £10 million and increased the capacity of its system to focus on priority cases. South Cambridgeshire has set up its own housing company to provide innovative solutions to meet local housing need. The company will expand its portfolio of properties, investing approximately £100 million over the next five years. This will generate an additional £600,000 per annum for the council.

Many councils have taken a more radical approach to restructuring to do better for their communities. The benefits can be enormous when local areas look beyond lines on a map and party differences and find new ways to work together. That is what Suffolk Coastal and Waveney district councils have done to create a new district council: East Suffolk. That culmination of years of collaboration is expected to yield annual savings of more than £2 million. There are also mergers of Forest Heath and St Edmundsbury to form West Suffolk, which is estimated to generate a saving of over £500,000 each year, and of West Somerset and Taunton Deane to form Somerset West and Taunton, which will lead to transformational change and annual savings of some £3 million.

[Mike Amesbury]

Will the Secretary of State clarify something? Given the pressures facing local government up and down the country, why has £817 million in underspend been given back to the Treasury?

[Sajid Javid]

I gently say to the hon. Gentleman that he is demonstrating his ignorance of how Government financing works. If he really thinks that that is issue, perhaps he can explain why that figure includes £65 million for affordable housing returned by the Mayor of London? Has he asked his colleague that question? Perhaps he can also explain why in Labour’s last full year in office, when the current shadow Housing Minister, the right hon. Member for Wentworth and Dearne (John Healey), was the Housing Minister, £240 million of housing and regeneration funding was returned?