Local Government Funding

Rishi Sunak Excerpts

Wednesday 28th March 2018 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

May I start by echoing the sentiments of the Secretary of State and hon. Members on both sides of the House? Within the short space of time that I have served as Local Government Minister, I have seen countless examples of the lengths to which councils go to serve their communities. It is a privilege to represent them in the Government, and I commend the hard-working staff and councillors delivering the services on which our communities depend.

I am proud that this Government are listening to those councils, recognising the pressures they face and responding to their concerns. That is why local government is seeing a real-terms increase in financial resources over the next two years. That is why local government is benefiting from an extra £2 billion in social care funding, and that is why local government is keeping billions more of its own money through business rates retention.

[Maria Eagle]

The Minister has just asserted that local government will have a real-terms increase. Does he accept that, as the National Audit Office has said, a 49.1% real-terms reduction in that funding has occurred in the past seven or eight years since the Conservative party has been in power?

[Rishi Sunak]

As the National Audit Office pointed out, this Government were alert to the requirements of adult social care building as a pressure. This Government responded by delivering extra money for adult social care.

In general, what this Government are doing is working. In adult social care, we have seen delayed transfers of care fall by 34% in the past year. In housing, we are seeing record levels of new home building and infrastructure investment, and from Teesside to the west country, we are seeing areas seize the opportunity to shape their own future. My hon. Friend the Member for Sutton and Cheam (Paul Scully) was absolutely right when he said that other people may paint a gloomy, downbeat picture, but there are examples of councils delivering for their constituents across the country, and as he pointed out, Kingston is doing a fantastic job.

Indeed, according to the LGA, over 80% of people are satisfied with their local area as a place to live, and satisfaction with local council services has remained entirely stable. To ensure that that continues, it is right that we update and modernise our current funding formulas. In the short term, I want to reassure the hon. Member for Garston and Halewood (Maria Eagle) that the Government are not clawing back section 31 grants, as she suggested might be the case. My right hon. Friend the Secretary of State confirmed that last week.

My hon. Friends the Members for Christchurch (Sir Christopher Chope) and for North East Hampshire (Mr Jayawardena) rightly asked about negative RSG. The Government are aware of the strength of feeling on that issue. We are planning to look at fair and affordable options for addressing that problem and will consult on it shortly after the local elections.

My hon. Friends the Members for St Austell and Newquay (Steve Double) and for Lewes (Maria Caulfield) spoke passionately about the rural areas they represent. They highlighted the historical unfairness in funding that their councils have suffered and why they think that should be addressed. I can confirm to them that understanding the particular costs of delivering services in rural areas and analysing the relative resources they have will absolutely be considered as part of our fair funding review.

My hon. Friend the Member for Bexhill and Battle (Huw Merriman) spoke about the importance of getting population growth right. Areas such as his have seen increases in the number of those of a particular age, which puts costs on to certain service areas. He is right to highlight that the new funding formula should use up-to-date population information and that it should be dynamic and respond to what is happening on the ground.

We have heard about children’s services, and it is absolutely right that we focus attention on vulnerable young people who are denied the stability that many of us sitting in the Chamber have enjoyed. It is a privilege for me to be the Minister responsible for the troubled families programme. Delivered in partnership with local authorities, the programme will invest £1 billion to help the most vulnerable in our society. I spent a morning last week in Liverpool hearing at first hand from the families themselves about the difference that this programme is making to their lives. Conservatives like to measure success by the outcomes we achieve, not just the amount of other people’s money that we spend, and the results are hugely encouraging.

[Alex Cunningham]

Does the Minister recognise the very specific link between deprivation and the number of children taken into care by our local authorities, and what is he going to do about it?

[Rishi Sunak]

What the Government are already doing about exactly that is working with the Department for Education on the most thorough and extensive piece of work ever undertaken to understand precisely the drivers of the need for children’s services, which of course includes deprivation. The report will conclude later this year or early next year, and I am sure the hon. Gentleman is looking forward to reading the results.

Beyond that, the troubled families programme is driving innovation on the ground, changing the way that local authorities work and bringing previously disparate providers of care together to help those who need it most. Other people may like to talk of compassion, but we in the Government are delivering it.

We have heard a lot about spending, but curiously rather less from the Labour party about who is paying for it all. We in the Government know who ends up footing the bill—ordinary hard-working tax payers. Over the past few months, the Labour party’s plans have become abundantly clear. We have heard about a radical change to council tax, a new local income tax, the abolition of the referendum tax limit and, as if that was not enough, a garden tax. Under the previous Labour Government, council tax doubled, and we all know that history tends to repeat itself. I can tell the House that this Government will always be on the side of hard-working tax payers. My hon. Friend the Member for Filton and Bradley Stoke (Jack Lopresti) was absolutely right to say that we should be getting them value for money and keeping their bills low.

[Maria Caulfield]

Will my hon. Friend confirm that, under the Labour party’s garden tax plan, 10 million families would have to find £4,000 a year more?

--- Later in debate ---

[Rishi Sunak]

My hon. Friend is absolutely right to highlight the thousands of pounds that will be loaded on to the bills of ordinary working families. [Interruption.] Labour Members do not like it, but it is true.

We now know that council tax is lower in real terms than when we came into office, service delivery is high and innovation is thriving. This Conservative Government are strengthening our communities, and Conservative councils are keeping their taxes low. To conclude, it could not be clearer what happens when people vote Conservative—local government costs them less and delivers them more.

Question put.