Local Government Funding: North-East

Phil Wilson Excerpts

Tuesday 1st March 2016 Westminster Hall

[Jenny Chapman]

My hon. Friend has just encapsulated my argument, neatly making the point that I am sure all Labour Members present will be making to the Minister. We feel strongly that we could, with the right support and the right collaboration with the Government and our local authorities, make a real difference to those numbers. Things were going in the right direction—that is what we are trying to get across—but we cannot do it on our own. We know that all Governments fiddle with the formulae to suit their political ends—I am not naive about that. We called for the debate because this Government are doing that in such a blatant manner.

In my home town of Darlington, residents are united in their disgust at what the Government are doing to our town. In a borough of some 100,000 people, almost 9,000 have already signed a petition initiated by my trusty local newspaper, The Northern Echo. The petition reads:

“The Northern Echo is calling on the Government to reconsider its funding formula which has led Darlington Borough Council to implement savage spending cuts that threaten the fabric of the town. These cuts affect not only the most vulnerable but will impact on every corner of the borough.”

It is unusual to find a local paper quite so squarely in support of the local council, and how right The Northern Echo is. I am so proud that that historic campaigning title is based in my constituency and is campaigning for fair funding for the north-east. It used to give the Labour Government a hard time, too, but it is completely clear that the decisions that this Government have made are disproportionately and unjustifiably harming the people of the north.

[Phil Wilson (Sedgefield) (Lab)]

I congratulate my hon. Friend on securing this debate. I represent part of the rural area of Darlington borough. Will she explain how unsubtle the funding formula for local government has become? Surrey has received £24 million of the £300 million transitional grant, but Darlington Borough Council is facing cuts of £20 million to £22 million.

[Jenny Chapman]

It is extraordinary, and the debate on the funding settlement that we had in the main Chamber brought it home to anyone who still thought that the Government were acting fairly. Government Back Benchers were saying, “I was going to vote against this, but now we have got our transitional funding I think I will go through the Lobby with the Minister.” It was completely bare-faced. One might have thought that the Government would be more subtle.

[Jenny Chapman]

It cannot. The northern powerhouse as a concept is being roundly rubbished across the region. The Minister might like to take that back to his colleague. It is becoming a joke, and it is not a joke that I take any pride in. I want there to be a northern powerhouse. I am proud of my region, and I see its potential. I want a Government who are genuinely prepared to support it, and the northern powerhouse is nothing but a slogan. It is nonsense; it does not mean anything; it is hollow. He needs to take that back to his colleague and come back with a real strategy that works with local people, looks at skills and transport infrastructure, and works properly with combined authorities, rather than just handing them some delegated responsibility without any resources to do anything meaningful that will transform anyone’s life. People are losing faith and what little confidence they ever had in the Government’s intentions to do anything of any purpose in our region.

[Phil Wilson]

My hon. Friend mentioned transport infrastructure, and she will be aware just as much as I am of the effect that the public transport cuts have had in Darlington borough. Some communities that I represent in the borough, such as Brafferton and Sadberge, no longer have public transport, which is affecting places such as Hurworth, Heighington, Middleton St George and Piercebridge. That just goes to prove that to energise a local community, public transport is necessary for those who cannot afford a car to get to work.

[Jenny Chapman]

I completely agree. I am aware that while we are meeting here, the High Speed Rail (London – West Midlands) Bill Committee is also meeting. If the Minister takes one thing away from this debate, I would like him to take this point about buses. The number of people in the north-east who rely on bus services far outweighs those who need a train to commute to work. Their services are being decimated. Councils are no longer in a position to financially subsidise bus routes. The bus companies are under no obligation to provide the services that we so desperately need and communities are being cut off. That is already happening—it has already happened to areas of my borough.

--- Later in debate ---

[Jenny Chapman]

It is indefensible, as my hon. Friend says. The Minister really needs to reflect on the decisions he has made. While those councils and the residents in those areas will benefit from the additional money, it is the looked-after children and the older people—the people who rely on council services in our region—who pay the price, and that is wrong.

[Phil Wilson]

I do not know whether my hon. Friend is aware, but revenue spending per household in Darlington from 2011-12 to 2019-20 will be reduced by £1,642. In Durham the figure is £1,600 and in Gateshead it is nearly £2,000. Does that not prove how brutal and unsubtle the cuts are for the north-east of England, when we compare them with what is happening in the south?

[Jenny Chapman]

Absolutely it does—I have the same numbers here, which I am happy to give to the Minister.

In a previous debate, the Minister tried to imply that Darlington was getting £2,000 a year extra. If he makes that same claim again, he is completely wrong. I have checked, double-checked and triple-checked with my director of finance, and the Minister is completely wrong. I advise him not to say that again and to ask his officials to get back to the local authorities and find out what the actual numbers are.