Local Government Finance

Roger Gale Excerpts

Wednesday 7th February 2024 Commons Chamber

[Chris Loder]

The reality is that the Liberal Democrats are not delivering on the Conservative legacy. That is clear for all to see, especially those who live in Yeovil and Taunton. It will hurt people financially, as they will see hundreds of pounds extra on their council tax because of having a Liberal Democrat administration rather than a Conservative one.

My constituency neighbour, my hon. Friend the Member for North Dorset, is saving the people of Somerset from a further 10% council tax hike that the Liberal Democrats want to pile on them. I am very grateful to him, as are a number of colleagues who are not able to be here, for saying that the Liberal Democrats have to be held accountable. They have to find solutions and carry through on what was a very good proposal several years ago. I hope that the people of Somerset will benefit from his good work and, in the mid to longer term, the people of Dorset will benefit, too.

[Mr Deputy Speaker (Sir Roger Gale)]

I call the Chairman of the Levelling Up, Housing and Communities Committee.

--- Later in debate ---

[Sarah Dyke]

Of course.

[Mr Deputy Speaker (Sir Roger Gale)]

Order. The hon. Member for Tiverton and Honiton (Richard Foord) has been in the Chamber for about five minutes. I do not expect hon. Members to walk into the Chamber and seek to support colleagues through an intervention.

[Sarah Dyke]

We need fundamental change to the way we fund local government. Across the country, we have an ageing population; in Somerset specifically, it is forecast that the 75-plus age group will double over the next 25 years. The demands of adult social care are becoming more complex and the costs are rising. We can no longer fund such an important and expensive service through council tax based on house prices from more than 30 years ago.

The issue is particularly difficult in Somerset. Historically low council tax rates and a damaging six-year freeze under the previous Conservative administration have left the band D rates in Somerset almost £260 lower than in its contiguous neighbour, Dorset. The rurality of Somerset also poses specific challenges because it costs more to provide services in rural areas. The council just cannot make enough money locally to fund adult social care. When I spoke recently to the leaders of Somerset Council, they described the situation as grim. They have to explain to residents why they will be paying more in council tax but receiving less, as cuts to discretionary services are being considered.

This is a nationwide issue that requires a nationwide solution. Nine councils have essentially gone bust since 2018, and the recent report by the Levelling Up, Housing and Communities Committee portrayed the critical situation facing local government. I am thankful to the Committee for its report, which recommended urgent reform to the funding of local authorities. I know that many of my colleagues in local government share those concerns. Some think it is now impossible to solve the crisis in local government through local funding.

I want to take this opportunity to highlight what our future could look like if we fail to reform local government, provide both statutory and discretionary services and look after the communities that we hold dear. Our communities will be left with high streets full of boarded-up businesses as the outdated business rates system puts pressure on entrepreneurs without adequately funding councils. Our fields will be littered with household waste from fly-tipping as councils shut down recycling centres, our streets overflowing with rubbish from uncollected bins. Our town centres will be bereft of quality libraries, and our roads full of even more potholes. As councils struggle more year on year to fund adult and children’s social care, SEND and housing, those services will undoubtedly deteriorate. Much of what I have mentioned is already a reality for millions around the country—it is simply terrifying to think how much worse it could get.

Council leaders have told me that we need a long-term solution, but politics is a short-term game. The Government have been reluctant to approach this issue seriously with a long-term plan, as evidenced by their unwillingness to follow the recommendations of the Levelling Up, Housing and Communities Committee and to publish a 10-year plan to tackle the long-term funding of adult social care.

I conclude by calling for cross-party unity to work together to solve this issue, which we must do for our communities. I know that councillors of all colours want to continue to provide the best level of services for their residents, and that councils of all colours are aware of the specific challenges they face. We must ensure that councils are adequately funded in the long term so that essential reforms are realised.

[Helen Morgan]

On a point of order, Mr Deputy Speaker. I believe my hon. Friend had finished her speech. She was not accepting an intervention.

[Mr Deputy Speaker (Sir Roger Gale)]

Are we saying that the hon. Lady had sat down?

[Sarah Dyke]

indicated assent.

[Mr Deputy Speaker]

In that case, you cannot possibly have an intervention. I call Peter Aldous.