Oral Answers to Questions Debate
Full Debate: Read Full DebateRishi Sunak
Main Page: Rishi Sunak (Conservative - Richmond and Northallerton)Department Debates - View all Rishi Sunak's debates with the Ministry of Housing, Communities and Local Government
(5 years, 6 months ago)
Commons ChamberWe are undertaking a review of local authorities’ relative needs and resources to develop a new, more transparent funding formula that will be fit for the future. We are making good progress in collaboration with the sector and recently launched a consultation that will close on 21 February.
This financial year the Government have granted Crawley Borough Council more than £700,000 for homelessness reduction, and this coming financial year it will be more than £800,000. However, the leadership of the council are complaining about a lack of capital funding for a homeless shelter when it has reserves of more than £21 million. Can I have an assurance from the Department that local authorities will be asked to properly deploy their resources to help the most vulnerable?
The people of Crawley are lucky to be represented by someone who had a very successful career in local government. My hon. Friend is excellently well placed to know that any council should look at using its excess reserves first, rather than refusing to invest in local services or unduly increasing the burden on hard-working taxpayers.
The hon. Member for Crawley (Henry Smith) has just been on the receiving end of a charm offensive, in case he had not noticed.
Does the Minister agree that funding is often better distributed through town councils? Will he condemn Sefton Labour councillors who voted against Southport having its own town council?
This Government support communities that wish to take greater ownership of local decision making. I encourage my hon. Friend and Southport residents to formally petition the council to undertake a community governance review. That will ensure they have the opportunity for their views to be properly considered.
Getting back to helping the most vulnerable, in the consultation document, the Secretary of State proposed to remove deprivation completely as a means of allocating resources from the foundation element of the formula, the non-care element, and rely totally on per capita allocation. Does the Minister not accept that people in the most deprived communities are more likely to use public transport, more likely to need the help of a housing officer and more likely to use council leisure facilities because they cannot afford those in the private sector? If he will not reinstate deprivation as part of the formula, does he accept that the whole review will become known as the very unfair funding review?
This is a consultation, and I would be happy to receive informed opinion from the hon. Gentleman, the Chair of the Select Committee. I would point out, however, that the funding formula covers broadly universal services used by the majority, if not all, of a council’s residents. As we disclosed transparently in the consultation document, population is by far and away the most important factor driving the need for those services. Deprivation was shown to account for less than 4% of the variation in spend in the area.
South Cambridgeshire District Council, deprivation rank 316, has seen a spending power cut of just £21.85 per household this year compared to 2010. Knowsley Council, deprivation rank two, has seen a spending power cut of £1,057 per household, while Hackney, deprivation rank 11, has seen the largest cuts in spending power of £1,406 per household. How is that fair?
I have some figures, too. Perhaps the hon. Gentleman would like to take account of the fact that the spending power per household of the most deprived authorities is today 23% higher than those that are the least deprived.
There are lies, damned lies and statistics. The Minister cannot get away from the fact that poorer areas are poorer on his watch and that health inequalities are widening on his watch. The situation is set to get worse as he seeks to continue with his reverse redistribution, shifting funds from the poorest communities to some of the wealthiest. Will he now agree, in the interests of transparency, to Labour’s call for the National Audit Office to independently scrutinise the fairness of his so-called fair funding review before it is implemented?
I do not think that I heard a rebuttal of the statistics I outlined. It is clear that the Government are supporting people in every part of the country. We are providing £1 billion of extra funding to deliver social services and a real-terms increase in funding for local government in the next coming year.
Local authorities have been given access to more than £46 billion for the forthcoming year. That funding is largely unring-fenced, so councils can spend it on children’s services as they see fit. I am pleased that the number of local authorities whose children’s services are ranked good or outstanding is continuing to increase.
More than 50,000 British-born children with parents legally in the UK are denied access to central Government support under pernicious Home Office rules. Councils are then forced to step in to provide emergency support through children’s social services. London councils spend £53 million on that, and there is no recourse to public funds. Last year, my council spent £6.5 million. When will Ministers end their wilful blindness to the penury that the policy causes and stand up for councils in the face of this blatant Home Office cost-shunt?
I thank the hon. Gentleman for his question. We engage with the Home Office regularly to deal with the funds for unaccompanied asylum seekers and other such people. I am happy to realise that issue in the next of my regular meetings with the Immigration Minister.
Permitted development rights have been a disaster for my consistency of Harlow, as London councils have socially cleansed their residents and sent 400 troubled families to our constituency. We do not have the resources to look after them in the way they should be. Will my hon. Friend look at permitted development rights, undertake a review and ensure Harlow Council has the resources it needs to look after those 400 extra troubled families?
I will be delighted to meet my hon. Friend to discuss that issue. Of course, vulnerable children must be housed appropriately and looked after, but we should ensure that that is done as closely as possible to where it makes sense for their communities.
Thank you, Mr Speaker. I was frantically trying to think of a question when you called me just now. I refer Members to my entry in the Register of Members’ Financial Interests.
The number of children in need is up, the number of looked-after children is up and the numbers of child protection plans and child conferences are up, yet the Government grant has gone down. This year, children’s services face a £1 billion funding gap—£3 billion by 2024-25—and the Local Government Association, the Children’s Commissioner, Action for Children and our councils have all warned that children will be at risk. So where’s the money?
The hon. Gentleman should know that last year £1 billion more was spent on children’s services than when we came into office and that the recent Budget announced an extra £420 million that could be spent on children’s services. Government Members are, however, concerned with outcomes, not just the amount of money we plough into things, which is why the Department for Education is working closely with the best-performing areas to spread best practice across the country.
The Government fully support the Parking (Code of Practice) Bill of my right hon. Friend the Member for East Yorkshire (Sir Greg Knight). It will create an independent code of practice for private parking companies and deliver robust accountability, providing a much better deal for motorists.
I was pleased to support and sit on the Committee for the Parking (Code of Practice) Bill, which my right hon. Friend the Member for East Yorkshire so expertly steered through Parliament, but parking scams have been operating in Clacton for many years and it is literally driving my constituents around the bend; they want a solution. When this Bill completes its journey and receives Royal Assent, how quickly can it be implemented?
I thank my hon. Friend for his work on the Committee and for highlighting his constituents’ problems. I am pleased to tell him that I have already placed a draft outline of the code in the House of Commons Library and as soon as Royal Assent is achieved a full code will be issued for formal statutory consultation.
The current system is one of self-regulation and, sadly, the behaviour of some rogue operators using questionable or intimidating practices means that change is required and we must act. The new code will mean consistency and higher standards for parkers and will ensure that rogue operators are driven out of business.
My constituents—particularly disabled constituents and those, for example, attending hospital appointments—also suffer from punitive cowboy parking operators. What efforts can be made in the code to give special protection to them?
These are exactly the kinds of things that the code of practice will cover, and I will be delighted to receive representations from the hon. Lady as the code is developed.
The Government regularly publish analysis of the impact of changes in funding on households of different income. Next year’s local government settlement sees a real-terms increase in funding and beyond that there is a range of council tax support schemes to assist those with low incomes.
Up until now, Ealing Council has ring-fenced child and youth services, but seven of its 13 libraries and 11 children’s centres are on a hit list for community management, which many see as the slippery slope to closure. The council says that it has been forced to do that because it only has 36p in every pound that it used to have. Will the Minister help to match up social enterprise buyers with these services, which help so many low-income families? Better still, when will the Government properly fund local authorities, as the age of austerity is meant to be over?
Not to rehash the fact that local government will receive a real-terms increase in funding next year, it did not escape my attention that at Ealing there are non-ring-fenced reserves sitting at the council of more than £100 million.
Having campaigned for it, I am delighted that the Secretary of State has approved a new business rates retention pilot from Northamptonshire that is anticipated to lever in an additional £17 million for local services. What difference does he believe this will make for frontline services in the county?
I am delighted that Northamptonshire will benefit from the new business rate pilot. Of course, that money can be used by the councils, working together to invest in the future prosperity of their communities. Beyond that, it promotes cultural change to ensure that all local areas have a stake in the economic future of their community.
I welcome the cross-Government work on this issue. As the House knows, a couple of years ago the Government announced the £15 million annual tampon tax fund to support women’s charities. There are no current plans to provide extra money to local authorities, but of course the Government keep that under review.
I share the hon. Gentleman’s passion for ensuring that councils have adequate early intervention services. I have been championing the troubled families programme since I arrived in this job, and I would be delighted to hear from him and others about how best to ensure that a successor programme is available to councils.
It was a pleasure to meet the hon. Gentleman and his constituent, who made a powerful and compelling case for Government action. I am pleased to tell him and all campaigners that we will outline the consultation before the Easter recess to take this important measure forward, and I look forward to his contribution.
Today, it has been revealed that Barnsley is the local authority hardest hit by Government funding cuts. Can the Minister really justify targeting cuts on the poorest in society?
This Government are committed to ensuring that every resident in this country gets the funding they need to have the services they deserve. The upcoming fair funding review is based on transparent, simple analytics and I am happy to hear from any colleagues if they disagree with the numbers.
Residents across my constituency and beyond are extremely concerned about the Rivenhall incinerator development, which was originally approved by the last Labour Government. With revised planning applications being considered, will the Secretary of State listen to my constituents and act by calling this application in?