Local Government Funding

Debate between Preet Kaur Gill and Catherine West

Tuesday 15th January 2019 Westminster Hall

[Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co-op)]

I beg to move,

That this House has considered local government funding.

It is a pleasure to serve under your chairmanship, Mr Walker. I declare an interest as a vice-president of the Local Government Association, a superb organisation that fights for the interests of local government on many levels, delivering services, empowering communities and investing in our future.

The Government’s obsession with austerity has targeted many areas of people’s lives in the UK, but the largest proportion of cuts has fallen on local government. I applied for this debate in order to ask the Government to recognise the folly of that approach and truly end austerity. As a councillor and council cabinet member, I have experienced the cuts at first hand. I have taken part in extremely difficult budget discussions and decisions in the face of increasing demand, which itself has been brought about by other Government policies that have made life harder for my constituents. I have also worked with local communities to try to offset and alleviate the most damaging impacts of Government policies.

To achieve real co-operative change in transport, housing and economic growth, however, councils and local communities need to be given sufficient resources and power. Under this Government, the opposite has happened: local authorities have had to cut staff levels, scale back many non-statutory services and try to save money in other ways. After nine years of cuts, first from the coalition Government and then from the Conservative Government, I am glad to see that the Government have now managed to find more money: an extra £1.6 billion has been found for 2019-20 in comparison with the initial funding plans set in 2016.

[Catherine West (Hornsey and Wood Green) (Lab)]

I congratulate my hon. Friend on securing this debate. Does she agree that on a day on which the House is debating Brexit, it is particularly galling that £4 billion is going into some sort of no-deal black hole while our children’s centres, libraries and important council services are all desperately at risk?

[Preet Kaur Gill]

My hon. Friend is absolutely right. The Government can do it when they try—instead of wasting that money, which is the kind of money that local government absolutely needs right now.

I am sure the Minister will tell us that the extra £1.6 billion is a great success that shows that the Government are listening, but can he tell us why has it taken them so long to acknowledge the failure of their own funding plans? Before he says that everything is going to be okay, let us look at some of the facts: 361 of Birmingham’s 364 schools are facing cuts, almost a quarter of West Midlands police funding has been cut and, as a result of scything cuts since 2010, Birmingham City Council has lost £642 million from its annual budget and is expected to be forced to make further savings of £123 million per annum.

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[Preet Kaur Gill]

My hon. Friend raises an important point. The NHS spends only about 5% of its funding on preventive measures. That just cannot be right. As she rightly says, social care costs will soar, and that makes no sense at all.

The Government have announced that they will phase out the public health grant after 2020-21. Instead, they expect business rates retention to entirely fund public health spending. Health inequalities will increase. While they have proposed some kind of top-up system, as with many areas concerning local government, it is unclear how that would work and to what extent that top-up would support the local authorities that need it.

[Catherine West]

Does my hon. Friend agree that one area of particular concern is sexual health services, which are being particularly hard hit?

[Preet Kaur Gill]

My hon. Friend makes a really important point. We need to invest more money in public health and not siphon it away from councils, for issues such as sexual health, drug and alcohol strategies, mental health—there are a number of issues, and I could go on.

Does the Minister agree that preventive services and approaches are the most efficient and effective way to improve outcomes for our residents and tackle many of the issues that they face? If so, does he agree that local government needs appropriate and sufficient funding to achieve that goal by providing frontline services and working with civil society to develop and sustain multi-organisation and agency approaches? If he agrees on those two points, does he believe that, as things stand, our local authorities have the resources necessary to deliver those services and approaches now and in the future?

I thank all Members who have attended this debate and who are waiting to contribute. The turnout reveals the depth and strength of feeling about this important issue. We all work with our local councils and know the vital services they provide and the work they put into care for our multitude of residents and citizens, particularly support for families, protection of children and care for older and disabled people. We all know that the Government’s current attitude and approach are not sustainable, and we need this Administration to wake up to that fact and address it properly.

I have waited until now to mention Brexit, which we must discuss and examine, if only briefly. The Government have committed billions to many Departments in preparing for Brexit. With the Treasury giving the Department only £35 million for preparations, will the Minister allay the fears of councils around the country by promising that any additional financial commitments and burdens that are placed on councils as a result of Brexit are fully funded by central Government? We need fully funded local government to drive many of the things that make Britain a great country in which to live and work. With councils already facing a funding gap of £7.8 billion by 2025, the Government must take the opportunity of the final settlement and the 2019 spending review to deliver truly sustainable funding to local government. Are they up to the challenge?