Covid-19: Funding for Local Authorities

Debate between Philip Hollobone and Rushanara Ali

Tuesday 24th November 2020 Westminster Hall

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

I beg to move,

That this House has considered the adequacy of funding for local authorities during the covid-19 outbreak.

It is a pleasure to serve under your chairmanship, Mr Hollobone. One day, there will be a public inquiry into the conduct of the Government during this pandemic and the decisions they have taken, particularly on the provision of finance to different parts of the country, and we will be able to learn what went well and what did not over the past few months. I hope that we will all support such an inquiry, so that further errors are not made in future.

Even before the pandemic, it would have been hard to argue that national Government were friends of local government and local services. Since the 2010 general election, the Government have reduced funding for local authorities by some £15 billion. The National Audit Office has found that Government funding for local authorities has fallen by 49% in real terms from 2010-11 to 2017-18, and that this equates to a 28.6% real-terms reduction. To put that in context, councils have lost 60p out of every pound they had a decade ago. The Institute for Fiscal Studies concurs, saying that local government spending has “fallen significantly”.

Let us never forget that this is not by accident: it was a decision made by Conservative Ministers and their Liberal Democrat coalition partners in the 2010-15 Government. National Government grants were gradually scaled back, so that poorer areas with great need were not provided with the additional funding they needed alongside local income generation. The cuts made in the name of austerity did not fall equally on the shoulders of people and local authorities: they hurt the poorest and most disadvantaged areas significantly, including areas such as Tower Hamlets, where my constituency is. The IFS says that deprived communities—those communities most reliant on public services—such as those in my constituency saw the greatest reduction in national Government funding.

There is another unfairness to the way in which funding was allocated, particularly Government grants, which have pretty much disappeared. That has made it very difficult for local authorities to deal with child poverty. Unfortunately, my borough, which includes two constituencies—Poplar and Limehouse and Bethnal Green and Bow—has the highest child poverty rate in the country. It is vital that the allocation of funding is fair and addresses the actual needs of communities. According to the Local Government Association, between March and June this year, councils have faced a bill of £4.8 billion because of extra costs and lower incomes due to the coronavirus pandemic. It estimates that the cost of the increased pressures on adult social care alone will be £533 million, and that the figure for public health will be £148 million. Future non-tax income losses due to covid will be about £634 million.

In summary, in terms of funding, the coronavirus pandemic has added even greater challenges to already pressurised local authorities up and down the country. And, of course, the worst challenges have been in poorer areas. I know that many other Members will want to speak of how their own councils have struggled with all those challenges while having to provide much-needed services during the pandemic.

In addition, local authorities have had to rise to the challenge of making up for the fact that the Test and Trace system has been inadequate. It is funded by the £12 billion provided to Serco and other private contractors, but local authorities have had to step in to serve their communities and make it work. They are taking on additional responsibilities because of the pandemic but not getting the necessary funding. The Government promised to provide that funding and it is falling short.

Although I welcome the £3.2 billion of emergency funding and the £300 million of funding for clinical commissioning groups, that still leaves a shortfall of billions of pounds, which is putting local authorities between a rock and a hard place. Labour, Lib Dem and even Conservative-run councils are struggling to balance the books. Some are going bankrupt or have declared bankruptcy. That is a big worry for communities, given that local authorities are on the frontline, cleaning the streets, looking after those who are vulnerable, dealing with the pandemic and providing support, including to the police service, which has experienced cuts, with 20,000 officers taken out of the system over the last decade. In reality, this means that communities such as mine in Tower Hamlets have faced £200 million of cuts over the last 10 years.

The extra costs of covid mean that a further £30 million will have to be found; otherwise services will have to undergo dramatic changes, which will have a damaging effect on people by 2024. At the same time, demand for services has grown. At the height of covid, my area also experienced the fourth highest age-standardised death rate in the country. The health inequalities and other factors that make people vulnerable mean that our local authority has to work closely with other agencies and their resources to protect people. Their actions have saved lives. There would have been an even greater number of deaths if local authorities and partners had not done that work, but they cannot continue to do it without support from national Government.

On education, schools are suffering and need support. Local authorities have worked closely with them to provide that support, but they need funding, as we saw in this summer’s debates about holiday hunger and child poverty. My local authority stepped in a long time ago to help keep children fed, but the food bank queues are astonishing. I would welcome the Minister visiting some of the food banks in my constituency. I joined others in visiting Bow food bank recently. The number of people using it has increased dramatically. They are not the usual suspects who need help because they are extremely vulnerable; middle-income families are also struggling because of covid, employment issues and lack of support. The need is greater, but the funding and resources are not there.

Other services under threat—and not just in my constituency but up and down the country—include those for young people with special educational needs and disabilities and those for young vulnerable children. It cannot be right that, in addition to the double whammy of the coronavirus pandemic and long-term funding cuts, the future life chances of the most vulnerable are being further damaged. We need the Government to act and use tomorrow’s spending review announcement to make sure that local authorities get the support they need to protect our communities.

I am sure that the Minister will say that there are limited resources. Of course there are, but the question is how the money is being used. We have to ask this. Is it right that, for instance, the towns fund—the NAO and others have pointed this out—which is more than £3 billion, is allocated in the way it has been rather than by focusing on indicators of need? That cannot be right. That kind of favouritism is what breeds distrust. It smacks of pork barrel politics and is absolutely unacceptable. How money is allocated and spent is crucial. Of course, there have also been scandals about personal protective equipment and other scandals.

It is right to say that the Government need to refocus their resources in a way that is fair and appropriate, because many local authorities and not just mine—Sunderland, Knowsley, Sheffield, Gateshead, South Tyneside, Oldham and many others—desperately need additional funding but are not getting it. I could go on, and I am sure other hon. Members will, about the number of local authorities that need support but are not getting it.

We need the Government to think quickly and act quickly to ensure that local authorities get the support that they need. If they do not, we will face, in the middle of a second wave of coronavirus—in the middle of a crisis like no other—more lives being put at risk not only by of the pandemic but by the failure to address the secondary effects of extreme vulnerability through local action and support, because local authorities will not have the capacity and resources to act.

I hope that the Minister will take on board my concerns and those of others about children and young people, adult social care and the wider issues of the underfunding and neglect of local government, which is at the frontline of delivering services and does not get the recognition and credit it deserves for the work it does. These are decent public servants who work very hard to deliver for our constituents. We need to back them up and support them, because if we are to fight and win the battle against the coronavirus pandemic, we are going to need them even more than ever before. We are also going to need a collaborative effort from the private and the public sphere to deliver implementation of the vaccine, as well as to improve testing and tracing, on top of all that they already do.

I hope that in today’s debate we can build consensus among Members of all parties to make the case for local government, because it is absolutely at the heart of addressing not only the challenges we face with the pandemic, but the long-term challenges of tackling inequality and genuinely fighting to level up. If the Government genuinely meant what they said in the election about levelling up, they need to put their money where their mouth is and deliver. I hope that the Minister will make that case later today to the Chancellor of the Exchequer, ahead of his statement.

[Mr Philip Hollobone (in the Chair)]

The debate can last until 4 pm. I am obliged to start calling the Front Benchers no later than 3.37 pm. The guideline limits are 10 minutes for Her Majesty’s Opposition and 10 minutes for the Minister, and then Rushanara Ali will have two or three minutes to sum up the debate at the end. There is a stellar cast of Back-Bench talent. Sixteen Back Benchers are seeking to contribute until 3.37, so if we have a time limit of three minutes, everybody should be able to contribute.

Face Coverings (Prohibition) Bill

Debate between Philip Hollobone and Rushanara Ali

Friday 28th February 2014 Commons Chamber

[Mr Hollobone]

I am sure that the right hon. Gentleman’s parents would be extremely proud of their son being a distinguished parliamentarian, but I am pretty sure that his mother was not veiled. The purpose of my Bill is to talk about covering one’s face and not about restricting people because they do not speak English. My intentions in putting forward this Bill are 100% honourable, because I am standing up and speaking out for the many hundreds of thousands of people in this country who are concerned about the increasing number of people covering their faces in public and who, frankly, feel that that is alien to the British way of life.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Will the hon. Gentleman give way?

[Mr Hollobone]

I am happy to give way to the hon. Lady and I welcome what she has to say. I want to respond to all the interventions that I have taken, but I am happy to give way to her at this point.

[Rushanara Ali]

The hon. Gentleman talks about the British way. As someone of Muslim background, I believe passionately in the right of any minority group, including Muslim women, to choose how they dress, and the best of British is our diversity and our inclusiveness. His choice of this Bill and his comment about what the British way is does a great disservice to our country by representing it in such a narrow-minded and intolerant way.

[Mr Hollobone]

The hon. Lady will not be surprised that I disagree with those remarks. She will know, because I informed her at the time, that a couple of years ago I visited her constituency as part of a TV programme. We did our best to speak with veiled women in her high street and I have to say that it was not an easy thing to do. It further drew my attention to the difficulties that veiled women have in undertaking normal everyday human interaction with people who are not veiled, because part of the traditional British way of life is that when somebody passes somebody else in the street whom they recognise, or half-recognise, they smile, perhaps wave and say hello; it is called neighbourliness. It is difficult for somebody to do that if their face is covered and it is also difficult for somebody else to do it to them, because there is no reaction.

Frankly, I do not want to live in a country where people—whether they are men or women—are increasingly going around with their faces covered, because it will lead to a deterioration in the quality of life. It also means that those ethnic minority women, largely from Muslim backgrounds, who do not speak English will find it much more difficult to learn to speak English, and they will remain at a disadvantage when it comes to accessing public services and interacting with the normal way of life if they cannot speak English properly.

--- Later in debate ---

[Mr Hollobone]

We are parliamentarians standing up for and speaking on behalf our constituents, who are concerned about these things. I do not think it helps the integration of communities in a multicultural British society when an increasingly large number of people, mainly women, go around covering their faces. That cannot promote community cohesion on any level. Do we really want to live in a Britain where a growing number of people are going around with their identities obscured? I do not, and I know that the majority of my constituents do not.

[Rushanara Ali]

rose—

[Mr Hollobone]

I fear I have provoked the hon. Member for Bethnal Green and Bow (Rushanara Ali) into intervening as well.

[Rushanara Ali]

Has the hon. Gentleman considered how many people could become criminalised and end up in the criminal justice system if they choose to follow their belief—not to follow his interpretation of Islam but their own? There are many interpretations. Some choose the interpretation that they do not have to do this, and others choose to do it. Is it right, and is it good for cohesion, if women find themselves criminalised and in prison thanks to his Bill? Perhaps he should also consider the impact on the prison population.

[Mr Hollobone]

One thing we can all agree on is that women who wear full-face veils are entirely lawful people who would want to stick to the law. I have no indication that were my Bill to become an Act those women would seek to break the law. I do not believe that they would be of criminal intent at all. In other countries where such legislation has been introduced, there have been only a very small number of infringements. In France, for example, Islamic clerics have urged Muslim women to comply with the law of the land, and there have been very few instances of women who have gone out of their way to break the law.