Covid-19: Funding for Local Authorities

Rachael Maskell Excerpts

Tuesday 24th November 2020 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali) on introducing this debate. I am increasingly concerned about the finances of City of York Council, in terms of both sufficiency and its investment choices.

Staff have been incredible in the way they have stepped up in this crisis, working in the most difficult circumstances and going above and beyond. Social care staff have put themselves at risk to meet demand. Social workers have found new ways to safeguard children. Refuse staff have continued to keep our streets clean and bins emptied. There are so many more I want to thank today. The increased demand on them must be recognised. More than claps and kind words, they must receive a proper pay rise this year. If the Chancellor reneges on that, it will never be forgotten.

In York, due to the high rateable values, need has not been met by grants. As offshore landlords have pocketed the benefits of these grants in their tax havens, businesses are vanishing from our high street. Labour wants councils to be able to support the local economy. In York, where 30,000 people work in hospitality, retail and tourism, we have the worst-hit high streets in the country and are one of the worst affected places in general. The 8 million visitors who normally come to our city just are not there.

I want to point to a few specific areas. We know there has been increased demand in domiciliary care, because families are not placing people in care homes for fear that they will not be able to visit and because of the risk of infection. The costs have increased significantly over the last few months and must be met. The same is true of charities. When it comes to the end of the financial year, many are fearful that they will not see their contracts renewed. Already £10 billion in debt, they need security in order to safeguard their futures. As the sector says, charities have never been needed more, but we must also recognise that they have never been more in need themselves.

On public health, it has been an incredible story in York. As we were heading into tier 3, we were able to turn the ship around, bucking national trends and reducing infection rates considerably. Contact tracing has been at the heart of that, yet we need more funding to do more to ensure that we lock down this virus in future, not people or the economy. I trust that the Minister will look at the resourcing of public health to ensure that it can do its job with sufficiency.

On the investments of City of York Council, at the heart of my constituency is York Central, the largest brownfield site in the country—I know that the Minister and I are going to discuss this. City of York Council has invested £35 million, which will turn out to be about £57 million. The other delivery partners, Network Rail and Homes England, will get their costs back plus 20% profit from the development, but City of York Council will not see such a return.

That needs scrutiny, not least in the light of the current situation, and because of its other poor investment choices, such as paying out £500,000 to a former chief executive, which the auditors are, rightly, not happy to sign off. There is something that needs investigation, and I trust that my discussions with the Minister will get to the bottom of those issues so that we can spend our money wisely in our city.