Local Government Funding

Naz Shah Excerpts

Wednesday 28th March 2018 Commons Chamber

[Sajid Javid]

Yes, I would certainly encourage all those councils that are creative and innovative, and that want to support local businesses and to look at new ways of funding and delivering services, to bid when we open up opportunities for new pilots.

[Naz Shah (Bradford West) (Lab)]

Like businesses, councils need stability, particularly with Brexit happening. Will the Secretary of State inform the House why his Department has not bid for any of the Government’s pot of funding to prepare for Brexit, to help councils?

[Sajid Javid]

My Department is very much involved in the preparations for Brexit. We have attended several recent EU exit committee meetings and we are involved. The hon. Lady should wait and see what happens. In due course, she will learn more about my Department’s approach.

In expanding the pilots, we have responded to what councils have told us, and we are doing the same in other areas. For example, the housing infrastructure fund recognises the crucial role that councils play in helping to deliver the homes that our country desperately needs, by providing billions in additional finance to support new development. We all know that we cannot achieve the new housing we need without having in place the right infrastructure, including schools, healthcare facilities, transport links and other essential types of infrastructure. We have received a staggering 430 bids, worth almost £14 billion, to deliver 1.5 million homes. That demonstrates the incredible ambition out there to tackle the housing crisis—an ambition that we are keen to get fully behind; hence our move to more than double the housing infrastructure fund at the autumn Budget, in which we dedicated an additional £2.7 billion, bringing the total to £5 billion. I was delighted recently to announce the first funding allocation of £866 million for 133 projects that will help to unlock some 200,000 additional homes. The work under way with a total of 45 local areas to deliver major infrastructure projects worth £4.1 billion could potentially deliver an additional 400,000 homes.

In his remarks earlier, the shadow Secretary of State talked about house building having fallen to its lowest levels since the 1920s—I think that is what he said. He is right about it having fallen to its lowest level since the 1920s, but he is wrong about when it happened. It happened in the last year of the previous Labour Government, when the current shadow housing Minister, the right hon. Member for Wentworth and Dearne (John Healey), was the actual housing Minister. Since then, it is up by more than 50%.

I recently announced almost £300 million of funding for housing deals in Greater Manchester, the west of England and Oxfordshire, and a housing deal for the West Midlands. The West Midlands deal backs the mayor’s ambitions to build some 215,000 homes by 2030-31. Isn’t Andy Street doing a fantastic job, Madam Deputy Speaker? You do not have to answer that. Those deals represent another important step towards meeting one of the defining challenges of our time, as do the measures we are taking on social care.

--- Later in debate ---

[Naz Shah (Bradford West) (Lab)]

I feel like this is one of those debates where there may be less disagreement than usual, given the appalling cuts that almost all our councils have faced over the last seven years. Let us be clear that council budgets are at breaking point. There are very few places left to cut. We are talking about our councils struggling to stay financially viable. There is little to nothing known about their sustainability from 2020 onwards, and there is real fear in our communities as we begin to lose services that are essential to people’s wellbeing. The truth is that the Government have put so much pressure on councils that statutory services have never been on a more insecure footing. They have put ever-increasing pressure on councils such as mine in Bradford and in other areas that sadly face the reality of deprivation.

In February in this Chamber, the Secretary of State for Housing, Communities and Local Government said that

“local government delivers vital services for the communities they serve—services that many of us take for granted, provided by dedicated, often unsung councillors and officers in places that we are all proud to call home. As such, as I have said before, local government is the frontline of our democracy and deserves the resources it needs to do its job,”

which is to

“deliver truly world-class services.”—[Official Report, 7 February 2018; Vol. 635, c. 1561.]

So the question is: why do the Government treat our tremendous councils, councillors and officers with such contempt, expecting them to provide world-class services that people desperately need with crumbs from the table?

Bradford will have seen a near 30% reduction in its funding by 2020. It will have lost in real terms nearly £65 million from its budgets, and all the Government can do is tell it to manage and keep providing essential services. The difficulty—this has been true of many councils for a long time—is that there is no room left to cut. We are at breaking point, with councils having to lose frontline services at a rate of change that leaves some of the most vulnerable in our communities at risk. In Bradford alone, we face some of the most difficult decisions yet, and that is before we need to find another nearly £30 million in savings in the next year.

A local group, Bradford Families Against Children’s Services Cuts, is fighting to try and save the special educational needs and disability and children’s services provision in the city. These real families are directly affected by the cuts, but the council is in an impossible position: instead of the expected £15 million funding from central Government, it will receive only £7.5 million. Let me be clear: this is at the Government’s door—they are deciding that these services are not worth protecting. The same is true for our early years children’s services, where, because of the extreme savings required by the Government, we are likely to have to lose nearly 200 members of staff. This is the grim reality for councils up and down the country while they strive to provide the most important services with less and less money.

This is not sustainable, and as the National Audit Office report on the financial sustainability of local authorities highlighted in no uncertain terms, as pressures grow, there are real and immediate risks to statutory services. Sadly, the Government seem content to keep dividing people. The chair of Solace and chief executive of Doncaster council wrote in The Guardian that councils can take no

“more shocks to what is already a shocked system.”

They are being thrown over a cliff edge, and Northamptonshire Council is one of those examples. The Government can wrap it up how they want, but the fact is that the situation is due to their cuts and their austerity policies. They really need to take stock and change those policies.