Local Government Funding

Neil Coyle Excerpts

Wednesday 27th March 2019 Westminster Hall

[Thelma Walker]

I do agree. I hear the same thing from Unison members—that they have worked so hard and are so committed to delivering services, but they are now crossing red lines where it is not possible to continue.

It is because the work of local government is so widespread that the effects of the cuts have been so far-reaching. The impact has been seen across services and across our country. We know that deprived areas have been hit the hardest, and that Labour councils are due to see falls of 28% on average, compared with a 19% fall for Conservative local authorities. Nine of the 10 most deprived councils in the country have seen cuts of almost three times the national average of £255 per household. Too often, there is a blame game with local authorities, when it is central Government who have cut funding and shifted the burden on to local communities.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

Does my hon. Friend agree that it is not just cuts that are having a severe impact on local authorities, but the additional pressures and demand from all the disabled people who have lost access to benefits, from rising homelessness and from the shameful buck-passing of Home Office responsibilities? With no recourse to public funds, families—

--- Later in debate ---

[Mrs Anne Main (in the Chair)]

Order. Before we go any further, as you can see the Opposition side is very heavy with speakers. There is a list of speakers, and I wish to get everyone in.

[Neil Coyle]

They could have turned up!

[Mrs Anne Main (in the Chair)]

Please do not argue with the Chair; I am informing you how it is. This House normally has short interventions, and I want to ensure that speakers get in. I am sure the hon. Lady has got the point and would like to carry on with her speech.

--- Later in debate ---

[Neil Coyle]

In cash terms, Southwark has lost 50% of Government funding since 2010 and faces another £8.6 million funding cut this year. Does my hon. Friend agree that it is deceitful of the Prime Minister to claim that austerity is over?

[Dan Jarvis]

My hon. Friend raises an incredibly important point. Following eight years of austerity and some £7 billion of cuts, neither the autumn Budget nor the more recent spring statement offered any comfort to our local authorities. The Local Government Association has projected that local councils will face a funding gap of £7.8 billion by 2025, and they still face a cut of £1.3 billion next year. Last autumn’s Budget offer of £650 million for the coming year is nowhere near enough even to close the funding gap for social care, let alone to address the shortfall in other services. Such concerns cannot be addressed by the piecemeal redistribution of income that we have seen from the Government.

Central and local government need to work together on the fundamental reform of the funding of our community services, and I believe that devolution offers the opportunity to do that. When we get it right, it offers a fairer and more democratic means of governing and delivering, where working people have a greater say in the choices that affect their lives and a greater stake in the services on which they rely. We can seek radical, transformative change to our communities only if those communities can control their destinies themselves. That means that the Government need to listen to and invest in those communities and the leaders they have elected to represent them.

We need to abandon an economic and political model in which the only hope is that wealth will trickle down and prosperity will ripple out. We must replace it with a fully empowered three-tier system of government—local, regional and national—giving each tier the powers and resources that it needs to make a difference in the communities for which it is responsible. Only if we do that correctly will we put the right people at the heart of decision making, end the status quo in which so many people have become disenfranchised, and allow communities to overcome the challenges they face, and thrive. Greater funding and stronger powers for local authorities should be the first step of that journey.