Oral Answers to Questions

Rishi Sunak Excerpts

Monday 5th November 2018 Commons Chamber

[Rebecca Pow (Taunton Deane) (Con)]

3. What recent assessment he has made of the effectiveness of his Department’s support for local government.

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

Councils will receive a real-terms increase in financial resources both this year and next. Furthermore, the Department funds the Local Government Association to provide support for local authorities to build leadership capacity, conduct peer reviews and facilitate efficiency initiatives.

[Rebecca Pow]

I thank the Minister for that. What help is being provided specifically for Somerset County Council to cope with the escalating demands of adult social care and children’s services? Will he bear in mind that Somerset County Council desperately needs £80 million from the housing infrastructure fund in order to cope with providing much-needed future infrastructure?

[Rishi Sunak]

My hon. Friend is tireless in pressing Somerset’s case. We listened carefully to her and others, and the Budget confirmed an additional £650 million for social care next year, and indeed an additional £500 million for the housing infrastructure fund. I am sure that the Minister for Housing will have heard her submission, but given what I have said, and the LGA’s specific support for Somerset with its children’s services, I hope she feels that we are responding to Somerset’s concerns and hers.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I do not know whether the Minister has ever heard the song “Streets of London” by Ralph McTell, but it is worth listening to just to be reminded of what the streets of every town in this country are like: how run down they are; how many rough sleepers there are; how much deterioration there is; how much graffiti there is; and how many broken pavements there are. That is what my constituents see in my town, and it is happening up and down this country because this Government have starved our country’s local government service.

[Rishi Sunak]

The hon. Gentleman may want to talk this country down, but Conservative Members have enormous faith in towns and communities up and down this country, which was why in the Budget we backed Britain’s high streets with a £675 million fund. We did that because we believe in local communities taking control of their high streets and developing vibrant communities that we will enjoy for years to come.

[Andrew Bridgen (North West Leicestershire) (Con)]

What steps is the Minister taking to ensure that local authorities in rural areas can deliver public services effectively?

[Rishi Sunak]

My hon. Friend has met me and others to discuss the cost of delivering services in rural areas, particularly in Leicestershire. His local county council has been a vocal proponent of a new fair funding formula, and I am pleased to tell him that we are engaged with his council and others to take into account those concerns, and we will shortly be issuing the latest round of consultation on those proposals.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

When one of the councils serving my constituency still faces £43 million of cuts over the next four years—more than the combined total it currently spends on recycling, parks, libraries, children’s centres, roads and pavements, and community safety—does the Secretary of State agree with the Prime Minister that austerity is over, or does he share the incredulity of so many of my constituents who wonder how she could possibly be so out of touch?

[Rishi Sunak]

This Government believe in backing local authorities to build strong communities. The hon. Lady mentioned parks and roads. Perhaps she heard in the Budget about £420 million for our councils to fix potholes this winter. My right hon. Friend the Secretary of State recently announced another round of our hugely successful pocket parks programme, and I encourage her local authority to bid as well.

[Mr Peter Bone (Wellingborough) (Con)]

In Northampton- shire, the borough councils, the district councils and the county council are all working together to set up two new unitary authorities. Is the excellent Minister able to say when he is going to consult on that? Secondly, is he able to say when he will make a decision on whether next year’s borough and district council elections need to go ahead?

[Rishi Sunak]

May I join my hon. Friend in paying tribute to all the local councillors in Northamptonshire, who are working very constructively together through a difficult situation to ensure that their residents benefit at the end of the process? I can tell him that reasonably shortly we will be issuing details about the next step of that process. As he rightly points out, as part of that the Government may have the ability to delay the elections next year, should that be requested by the authorities and make sense in the context of the new unitisation proposals.

[Andrew Gwynne (Denton and Reddish) (Lab)]

This Government’s record on local government is clear: since 2010, the Department’s budget has fallen by at least £13 billion; and, by 2020, the revenue support grant will be cut by 80%—£8 billion—putting more pressure on to council tax, which is an unequal levy. Northamptonshire has, in effect, gone bust, with the media reporting that Surrey, East Sussex and Lancashire are next in line. Services are under pressure—cut, slashed or stopped altogether—and councils are at breaking point. The Public Accounts Committee asked Ministers to publish a definition of “financial sustainability” for councils, methodology for assessing authorities at financial risk, and projections for spending and demand in service areas, so why have they refused? This is common sense; what has the Minister got to hide?

[Rishi Sunak]

The hon. Gentleman has a job to do, and I appreciate that—it is his job to put pressure on us—but I would have thought that this week, after all the question sessions we have had, he would have joined me in welcoming last week’s Budget, which includes £1 billion extra for local government across two years.

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[Robert Courts (Witney) (Con)]

7. What steps his Department is taking to ensure the equitable allocation of funding to local authorities.

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

We are undertaking a fair funding review of local authorities’ relative needs and resources to address concerns about the fairness of the current system. This will determine the new funding allocations for local authorities through a more up-to-date and fairer funding formula.

[Robert Courts]

Rural areas are historically underfunded and in West Oxfordshire we need more funding for road repairs, upgrades to the A40 and adult social care. How is fairer funding progressing and will this be addressed in the spending review?

[Rishi Sunak]

I am pleased to say that we are making very good progress and are considering many of the topics raised by hon. Members, including rapidly changing demographics affecting social care and the cost of delivering services in rural areas. I look forward to collaborating closely with the sector and with my hon. Friend’s county as we look to introduce a simple, accurate and transparent new funding formula.

[Nic Dakin (Scunthorpe) (Lab)]

If funding is so equitable, why is North Lincolnshire Council giving people on the lowest incomes such a low level of support with their council tax, at only 50%? Why is the council sending nearly all its discretionary housing payments back to the Government?

[Rishi Sunak]

Decisions about local council tax support are rightly for individual local authorities to make themselves; it would not be appropriate for me to dictate to them. The fairer funding formula is designed to determine the equitable nature of funding distributed to all local authorities. The hon. Gentleman will know that the current system dates back to 2013-14, and indeed many elements date back decades before that. We are determined to fix it and bring it up to date.

[Steve Double (St Austell and Newquay) (Con)]

I thank the Minister for supporting the measures in the Budget exempting public toilets from business rates and providing a commitment to take action regarding second home owners who are avoiding business rates. I very much welcome his words on a fair funding formula, but when the fair funding formula was previously introduced, it was dampened away. Will he make a commitment that rural councils really will see the benefit of a new fairer formula this time?

[Rishi Sunak]

I pay tribute to my hon. Friend and, indeed, to my hon. Friend the Member for North Cornwall (Scott Mann) for successfully placing in the Budget measures on public toilet relief and second homes. With regard to my hon. Friend’s second point, I am determined to ensure that the new formula is transparent and that all local authorities—not just those in rural areas—have a clearer idea about their allocation under the new formula, and transition to those new allocations in a relatively short timeframe.

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

A recent report by the New Policy Institute shows that the majority of local government cuts have fallen on the 10 most deprived councils, despite the fact that they have higher numbers of looked-after children and adults needing social care and other council services. Will the Minister now commit to funding councils properly and according to levels of need, rather than political colour, as the Government appear to be doing at the moment?

[Rishi Sunak]

It is simply not the case that that is how funding is determined. Although out of date, the current funding formulas do contain deprivation measures and funding is distributed on the basis of need. That is also how the new funding for adult social care, announced just last week, will be distributed—according to the relative needs formula.

[Lilian Greenwood (Nottingham South) (Lab)]

8. What recent assessment he has made of the adequacy of Government funding for local authorities in England.

[Stephen Timms (East Ham) (Lab)]

10. What recent assessment he has made of the adequacy of Government funding for local authorities in England.

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

The Government have listened and responded to the pressures faced by local authorities. The autumn Budget helped to support financial sustainability of local authorities and provided more than £1 billion of additional funding across this year and next year for local authorities to deliver local services, support vulnerable residents and build vibrant communities.

[Lilian Greenwood]

I welcome the short-term support for adult social care promised in last week’s Budget, but it is a sticking plaster at best. In Nottingham, it costs an average of £450 a week to care for someone at home, compared to £2,500 in hospital. Our NHS trusts are already raising concerns about winter pressures. Inadequate social care provision adds to those pressures and will inevitably cost the Government more in the long term. I know that the Minister understands the importance and efficacy of early intervention and prevention, so can he provide any assurances that he understands the need to fund adult social care sustainably and tell us what support will be provided from 2020 onwards?

[Rishi Sunak]

The hon. Lady is absolutely right to mention the importance of prevention, and of the interaction between the NHS and social care. Later this year, we will see the publication of the Government’s Green Paper with a long-term sustainable settlement for social care. That will answer her question as to the settlement for social care beyond next year in the spending review.

[Stephen Timms]

My hon. Friend the Member for City of Durham (Dr Blackman-Woods) just mentioned Cambridge University research published last month showing that local authority spending cuts have been concentrated on the poorest areas, making disparities with better-off areas much worse. Phasing out central Government grants, as Ministers are proposing, will make that even worse. Are Ministers happy just to let the disparities between different areas rocket?

[Rishi Sunak]

It may be worth pointing out to the right hon. Gentleman that core spending power per household in the most deprived local authority areas in the country is 23% higher than that in the least deprived. This Government support all communities with the resources that they need.

[Ian Austin (Dudley North) (Lab)]

9. What assessment he has made of trends in the level of new homes provided for social rent since 2010.

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[Kevin Foster (Torbay) (Con)]

T3. Like the Minister, I welcome the Budget’s announcements of £650 million extra for social care and £84 million for children’s social care programmes over five years. Will he confirm when local authorities, including Torbay Council, will be told what their share of this new money will be?

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

I can tell my hon. Friend that £240 million of the £650 million will distributed in the same way as the budget for the current year and he should have received those figures already. We will shortly write to local authorities and colleagues about the distribution of the second tranche of £410 million.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

T2. Last week, Southern Landlords Association filed for judicial review—[Interruption.]

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[Mr Marcus Jones (Nuneaton) (Con)]

The Labour cabinet in Nuneaton and Bedworth is imposing a £40 garden tax on green waste collection, despite pledging not to do so in May’s local election. Does my hon. Friend agree that such a fundamental change to how people’s waste is collected should not be made without full and proper consultation with the public and buy-in from local people?

[Rishi Sunak]

My predecessor in this job well knows that such decisions are rightly for local areas to make themselves, but I would say that local authorities should look to tighten their own belts and curb any wasteful spending before increasing the bills of hard-working taxpayers.

[Mr Dennis Skinner (Bolsover) (Lab)]

Further to the Secretary of State’s answer to my hon. Friend the Member for High Peak (Ruth George) about Derbyshire County Council’s cuts, the cuts in question are worth more than £200 million, and they were made not by the Labour Government, as he stated, but by the Tory Government in alliance with the Liberal Democrats. To refresh his memory further, I should remind him that we also trebled the amount of money going into the hospital. Now a Tory county council at Matlock has decided to close 20 libraries in the county. That’s politics.