Roberta Blackman-Woods
Main Page: Roberta Blackman-Woods (Labour - City of Durham)Local Government Financing
Roberta Blackman-Woods Excerpts
Grant Shapps
Which is new money and was announced last week. No doubt the hon. Lady in her next intervention will welcome that money, which would presumably go to areas such as that the one she describes.
Roberta Blackman-Woods (City of Durham) (Lab)
Will the right hon. Gentleman confirm that that £1 billion is additional funding—on top of the money that would already have been made available to RDAs and to local councils in order to support regeneration in their areas?
Grant Shapps
I may be living in a parallel universe, but I and Government Members were here last week for the Budget, when all that was described in a great deal of detail, including in the Red Book, which explains that the fund is new and comes out of the total spending envelope. It is fairly straightforward.
Let us make some progress. We will scrap Labour’s plans for new bin taxes, which meant even higher tax bills for local families and harmed the environment by encouraging more fly-tipping and more backyard burning. We need to go green, but we cannot have the bin bullies and the town hall Taliban who seemed to look after town halls before. Instead, we are going to embrace opt-in schemes, such as Windsor and Maidenhead’s recycle bank initiative, through which families are rewarded for recycling and doing the right thing. We will encourage people to do the right thing, rather than punish them when they do not.
Incentives can work for councils, too. Let us reward local authorities for driving economic performance in their area, and for building new homes. Incentives can work for councils in all sorts of ways.
Roberta Blackman-Woods (City of Durham) (Lab)
I am very pleased to contribute to the debate, because it is important to remind everyone of the key role that local government plays in the delivery of services to our communities. I am very grateful to my right hon. Friend the Member for Sheffield, Brightside and Hillsborough (Mr Blunkett), who is not in his place, for outlining the importance of council services to vulnerable people. That is why we need to take a detailed look at where the £6.2 billion of additional cuts are falling. I shall speak later about the huge impact that the £16.8 million of additional cuts, in-year, to Durham county council’s budget will have in Durham city.
Perhaps we should not be surprised by the coalition Government’s callous approach to local government and the communities it serves, because, although the coalition document says a lot about enabling communities to run services, there is not a single mention of how those services will be paid for. Neither is there a single mention of what will be lost by those communities in terms of services that they will no longer get from their local councils. I am surprised that our Liberal Democrats in Durham, who are normally very good at saying how they support localism, have been strangely quiet in the past few weeks. Not one of them has come forward to condemn the outrageous cuts being inflicted on north-east councils.
The Labour-led council in Durham has shown how dreadful the cuts will be for our local communities. The Department for Communities and Local Government has said that it will make a cut of £6.34 million, but it has announced only the cut to the area-based grant. There is, in fact, a cut of £16.8 million, because other cuts that have not been clearly identified have been passed on to local government in relation to transport capital, the housing and planning delivery grant, the local area agreement reward grant and many other areas. The cuts to Durham county council are savage already, even before the comprehensive spending review in October, which we know will go even further.
The two Government parties have to answer a number of questions. The headline percentage decrease reported by central Government has been calculated only against the area-based grant reduction. When other cuts are taken into consideration, the cut to Durham’s budget will not be the 1% presented by the Government, but 4%. Why is there this lack of clarity?
Analysis of the reductions in grants shows that northern authorities have received the largest decreases in funding, with 31 of the top 50 authorities being in the north. That will add to the problems that we have in trying to rebuild the economy after the recession and in trying to improve life chances in some of the most disadvantaged communities in the country. That is not fairness. Why are the Government taking that approach?
Perhaps more outrageous still, considering the size of the reductions being made, is how they relate to the index of multiple deprivation. There is a strong trend of the most deprived authorities receiving the largest budget cuts. It is simply wrong that the poorest authorities seem to be the least protected. Again, the Government must make it clear to the Chamber why they are attacking the most disadvantaged communities in the country the most.
We have to get past the idea that the cuts are simply cuts to waste, because they are cuts to real services. Durham is experiencing a cut to its extended schools start-up costs. Providing those services is not profligate; they help parents to go to work and they give vital support to children.
Chris Heaton-Harris (Daventry) (Con)
How much of the cuts, in percentage terms, does the hon. Lady think that the top officers in Durham have taken on board themselves and how much does she think is being passed down to front-line services?
Roberta Blackman-Woods
It is because the hon. Gentleman’s Government have cut the area-based grant and additional services that the cuts have to fall in the ways that I am describing. It would have been much more sensible not to have—[Interruption.] Is the hon. Gentleman going to listen to my answer or not? What I am saying to him is that if we did not have these additional cuts in-year and if there had been a proper programme of consultation, it might have been possible—[Interruption.] Will the hon. Gentleman let me finish? It might have been possible to identify other cuts that would not have had such a direct impact on front-line services. The way in which his Government have made these cuts has led to the attack on front-line services.
Chris Heaton-Harris
Let us just say that a reasonable percentage of the cuts have been in the amount spent on the officers in Durham county council. Can the hon. Lady tell us how much the Labour county councillors on Durham county council have cut their allowances?
Roberta Blackman-Woods
Clearly, the hon. Gentleman did not listen to the answer that I gave him and does not understand the impact that a cut to area-based grant and other grants has. As I was saying, there will be cuts not only to extended schools start-up costs, but to the careers service and to the Supporting People budget, so they will affect both young and older people.
The cuts are not just to the public sector. The Government parties have demonstrated again today that they do not understand the links between the public and private sectors. On Friday, I visited one of the private nursing homes in my constituency to discuss the problems that it was experiencing with its budget. The entire business of that private sector delivery organisation is being affected by the requirement for the local authority to raise its residential allowances, which will lead to a loss of jobs in the private sector. It also makes no sense to cut the working neighbourhoods fund and the local enterprise growth initiative, especially in Durham, where the unemployment level is higher than the national average.
Do not get me wrong. The council and the regional development agency have worked hard in the last few years to try to ensure that unemployment remained at much lower levels than those experienced in the recessions of the 1980s and 1990s, and they were very successful in that regard. However, they need the working neighbourhoods fund and support for local business if they are to ensure that unemployment does not rise further. According to the council, it has received funds in the past for projects to help people into work, deal with worklessness and enhance job creation, but those are the funds that are being cut now. I consider that action to be disgraceful, short-term and short-sighted. It shows no understanding of the need for measures to encourage people to seek employment. Furthermore, the loss of funds from the Home Office will reduce the amount of resources for tackling antisocial behaviour.
I could go on and on with the list, but my main point is that if local people were asked where to make cuts, I very much doubt that they would prioritise cuts in services that seek to tackle antisocial behaviour or help people back into employment. We all know that cuts have to be made, but the top-down way in which these cuts are being inflicted means that local authorities cannot have full control over the areas that they would protect and those in which they would make cuts. It also means that they cannot consult local people. Such a degree of centralisation imposed by the Government parties, whose members say that they support localism and devolution, is breathtaking.
As well as not allowing local government time to produce a sensible framework for reducing the deficit, the Government have provided no clarification in respect of key programmes. In the case of Building Schools for the Future, that is leading to considerable uncertainty in our communities about whether new schools will go ahead. We need clarification as soon as possible. My local authority wants an open dialogue with the Government, and greater consultation within the sector on the timing, extent and detail of future reductions so that they can plan for them properly—and, critically, so that they can ensure that those who are most vulnerable are protected as far as possible from the impact of the cuts that must be made.
Why are the Government parties picking on existing policies—particularly those designed for the long term—that seek to reduce inequality? I have two examples in mind: free school meals and free swimming. The task of protecting and improving health must not depend entirely on the national health service; we also need local policies and services that help our young people to develop healthier lifestyles and a more sensible approach to their eating habits. The way in which the Government’s cuts are attacking free school meals will ensure that a central plank is removed from our plans for reducing inequality for the future, and I do not consider that acceptable.
Mr Mark Spencer (Sherwood) (Con)
I pay tribute to my hon. Friends the Members for Wolverhampton South West (Paul Uppal) and for Dudley South (Chris Kelly), who made their maiden speeches today—although they caused me a little pain by referring to the mighty rise of Wolverhampton Wanderers and West Bromwich Albion, as I recalled that Nottingham Forest’s efforts to achieve promotion this year ended in dust. Fortunately, I was able to console myself then with the knowledge that, come the summer, England would probably win the World cup.
I am becoming increasingly frustrated by the series of Opposition Members who say, “We would have kept this or that bureaucratic scheme that would have protected vulnerable people,” in the next breath say, “We would have made £40 million worth of cuts,” and in the next breath do not specify where they would have made those cuts.
Roberta Blackman-Woods
Perhaps the hon. Gentleman will tell us what is bureaucratic about free school meals, especially given the universal pilots in Durham and other areas.
Mr Spencer
A number of schemes have been tied up in bureaucratic nonsense, and local authorities have had to jump through a number of hoops to deliver centrally issued targets that create an enormous amount of bureaucracy for local authorities. I shall say more about that shortly.
It is little wonder that the country’s national finances were brought to the brink of an abyss, given the last Government’s lack of vision and basic financial understanding. We only just avoided the intervention of the IMF in our finances; we were very close to that, as has been widely recognised.