Covid-19: Funding for Local Authorities
Navendu Mishra Excerpts(5 years, 8 months ago)
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Navendu Mishra (Stockport) (Lab)
It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank my hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali) for securing this important debate.
As far back as May, I wrote to the Secretary of State for Housing, Communities and Local Government asking for a cast-iron guarantee that the Government would deliver on their promise to cover the costs of local authorities’ response to the pandemic. At the time, Stockport Metropolitan Borough Council in my constituency was facing a shortfall of £41 million, like other councils, and that shortfall has now increased considerably. Six months on, we are still awaiting an assurance from the Government, while local authorities continue to be pushed into the red as they struggle to stump up funds to safeguard the lives of their citizens during the latest wave. Faced with economic ruin, the council was pushed into the dark, as we saw most recently when the London Borough of Croydon was forced to file for bankruptcy after being unable to address a £66 million black hole.
Our councils continue to do the job of ensuring that everyone receives the support they need during this incredibly troubling period. I have enormous respect for them and am incredibly grateful for the work that they have continued to do in challenging circumstances. The deputy leader of my council in Stockport, Councillor Tom McGee, is a fine public servant and I thank him for ensuring that our local public office holders are updated at every stage of the pandemic and are aware of the challenges faced by our local administration.
Nobody expects the Government to have foreseen a global pandemic, but it is clear that a decade of austerity—an ideological choice, not an economic necessity—has ravaged local authority finances and left them weakened, forcing councils to delve into their reserves to redress the central Government shortfall. To put that in context, Stockport council went into the crisis with over £100 million already slashed from the town hall budget since 2010. The council has now been forced to step in to compensate for the Government’s insufficient funding, and local authority budgets are stretched even further. During the first wave alone, the funding black hole for Stockport council was £25 million. Failure to underwrite council expenditure will have dire consequences for my council and leave it with little alternative but to consider dramatic measures such as issuing section 114 notices to curtail all but essential spending, leading to wholesale reductions in services for all those living and working in Stockport.
The Government must urgently intervene to ensure that all councils are in a position to protect their citizens and prevent other services from going to the wall, including libraries, parks, museums and leisure services. Adult social care is one area that cannot be overlooked, and it is already under enormous pressure, as was mentioned by my hon. Friend the Member for Bethnal Green and Bow. The Government need to resolve the funding crisis in the adult social care sector. The Local Government Association recently estimated that social care services face an additional cost of over £6.5 billion to cover costs. The main three areas are PPE, increased staff costs, and increased cleaning and overheads.
In addition to the vast expenditure that local authorities are forced to cover during this period, many have seen their incomes cut dramatically. Every council in Greater Manchester, for example, has been hit by the drop in the dividends from Manchester airport on which it relies. For Stockport council, that means that more than £6 million has been lost, placing further strain on services and jobs—and that is even before we factor in the significant number of jobs lost in the aviation sector more widely, where many of my constituents work in the UK’s third-largest airport.
CCRC Decision on 44 Post Office Prosecutions
Navendu Mishra Excerpts(5 years, 9 months ago)
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Paul Scully
Yes—one of the reasons for making it a non-statutory inquiry is so that we can get the answers quickly, study them, put things in place, and ensure that the Post Office has put the structures in place to ensure that it never happens again. We can keep its feet to the fire to make that work.
Navendu Mishra (Stockport) (Lab)
The Communication Workers Union has been campaigning on this issue for a long time. I join others in paying tribute to the right hon. Member for North Durham (Mr Jones) for getting this urgent question. The inquiry that the Minister has set up seems to lack statutory powers. Will he comment on that? I know that he has made other comments on that matter. Also, how much taxpayers’ money was spent opposing appeals on the sub-postmaster scandal?
Paul Scully
On a statutory inquiry, as I have said in a number of answers, I want to ensure that we can get the answers quickly, rather than having people, as I described in a previous answer, lawyering up, which adds expense and time for the postmasters who have been through so much. I deal with the CWU on a regular basis. In terms of taxpayers’ money, the Post Office has funded the prosecutions through its own profits.
Westferry Printworks Development
Navendu Mishra Excerpts(6 years, 1 month ago)
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Navendu Mishra (Stockport) (Lab)
Westferry has all the hallmarks of some of the murkiest cash-for-favours scandals we have sadly borne witness to over the years. Despite the Secretary of State’s denials, the facts remain that he approved the Westferry printworks scheme just 12 days before the developer donated £12,000 to the Conservative party, and the approval came just two weeks after the Secretary of State sat next to Mr Desmond at a party fundraiser at which—the developer subsequently admitted—he had raised the scheme with the Secretary of State.
Navendu Mishra
In a moment, perhaps.
There then followed a private screening of a promotional video for the development—that completely undermines the Secretary of State’s claim that he and Mr Desmond did not discuss the screening prior to his decision. The favours do not stop there.
As we know, the decision was made just 24 hours before the new community infrastructure levy came into force, saving Mr Desmond’s Northern & Shell company up to £50 million. All of that was compounded by the Secretary of State overruling his advisers—including his own Department’s planning inspector, who recommended that permission be refused in what was reported at the time as a “damning” 141-page report—to reduce the amount of affordable housing required in the development, saving Mr Desmond a further £106 million.
It is not the first time that Mr Desmond has had the development approved. My hon. Friend the Member for Croydon North (Steve Reed) made reference to how in the final days in office of the then Mayor of London, now Prime Minister, the then Mayor approved a 30-storey scheme on the same site, despite objections from the local council and just months after sharing drinks with Mr Desmond in a five-star hotel. Sadly, it all has a very familiar ring to it.
Given that the Prime Minister pushed the original scheme for the same developer when he was Mayor of London, did No. 10 have any involvement in the events or conversation leading to the Secretary of State’s unlawful decision to grant approval? It is completely immoral and, furthermore, illegal for a Government Minister to show such bias on such a matter. In this instance, it appears that the Secretary of State’s price was a £12,000 donation to the Conservative party just weeks after the decision was made.
On 14 June, The Mail on Sunday reported strong links between lobbyists for the development, Thorncliffe Communications, and the Secretary of State, whom it described as a “great friend of Thorncliffe”. The Secretary of State even spoke at a private briefing on Government policy for Thorncliffe and its client on 29 January. The Labour party has written twice to the Cabinet Secretary calling for an investigation into whether the ministerial code has been broken, but without reply.
A lack of affordable housing remains a significant challenge in Greater Manchester. To overcome the situation, the planning system needs a complete overhaul, and that starts with ensuring that developers meet the needs of their communities, not the Government meeting the needs of developers.