Birmingham City Council

Rachel Hopkins Excerpts

Tuesday 19th September 2023 Commons Chamber

[Michael Gove]

I am grateful to the hon. Lady for that and I had the great privilege of visiting Bath recently to look at a housing development. Just as some Labour councils are good, I believe there are one or two Liberal Democrat councils that are good, although I certainly shall not be naming them at this Dispatch Box now. More broadly, we are taking steps to deal with the audit situation she mentions and my hon. Friend the local government Minister can brief her in detail, should she wish, about that situation.

[Rachel Hopkins (Luton South) (Lab)]

The Secretary of State mentioned core spending power, so it is important to reflect on the first 10 years of this Conservative Government, when 60p in every pound was stripped away from local authorities. The Government then forced councils to rely on council tax as central Government funding was reduced. Places such as Birmingham and Luton can raise much less from council tax, because of their smaller housing stock, than wealthier areas, which have bigger houses in higher council tax bands. Places such as Birmingham and Luton therefore lose out every year. Was his policy just a result of incompetence or is it part of the Prime Minister’s stated aim to take funding from deprived urban areas and give it to wealthier towns?

[Michael Gove]

I do not know how it is possible to sustain an argument that we are taking funding from deprived areas when one looks at the levelling-up partnerships we have in Hull, Sandwell, Blackpool, Blyth, Worksop—[Interruption.] A tiny amount? Tell that also to the people in Middlesbrough, Redcar and Cleveland, who have benefited from strong Conservative leadership and investment. Tell it to the people in Workington, Walsall and Willenhall. All of them have benefited directly from the levelling-up funding that this Government have secured. Were there tough times in the first couple of years after 2010? Yes. Why were there tough times? It was because Labour had left us in a situation where there was no money left. I am afraid that the lesson of Labour in central Government is that it always leaves office with unemployment higher than when it entered and with the public finances devastated.