Local Government Funding

Baroness Winterton of Doncaster Excerpts

Wednesday 28th March 2018 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The hon. Gentleman will give way if he wishes to, but we must hear his speech.

[Andrew Gwynne]

Thank you, Madam Deputy Speaker. Metropolitan district councils have seen a reduction in spending power of 33.9% in real terms from 2010 to 2017-18. Over the same period, county councils’ spending power has fallen by 22.1%, but spending power masks the true scale of the cuts to Government grants. This is having a drastic impact on council services. Youth centres, museums and libraries are having to close. Our social care system is in crisis. Compared with 2010, there are now 455 fewer libraries, 1,240 fewer Sure Start centres and 600 fewer youth centres.

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[Wera Hobhouse (Bath) (LD)]

I thank the hon. Gentleman for giving way, because this is an important debate. Yes, the Liberal Democrats are now on the Opposition side—[Interruption.] Listen! We were on the Government Benches to say that we needed to tighten our belts, but for a long time now we have said that enough is enough. We are seeing the impact on our local services. We cannot stand by any longer. You all must have constituents coming—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The Speaker referred to this the other day: we really must not use the word “you.” Hon. Members have to address one another through the Chair. There is a reason for that, so I urge the hon. Lady and all hon. and right hon. Members to ensure that that convention stands.

[Wera Hobhouse]

I apologise, Madam Deputy Speaker. Those on the Government Benches should understand what we are doing to our local services. They must have constituents coming to their surgeries—

[James Cartlidge (South Suffolk) (Con)]

rose—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. That is a very long intervention. I call Andrew Gwynne.

[Andrew Gwynne]

Thank you, Madam Deputy Speaker. The hon. Member for Bath (Wera Hobhouse) is right that these cuts have gone far too far. Many of my constituents, though, will not forgive the Liberal Democrats for the part they played in pushing through the deepest austerity in the coalition Government. Many of those hard choices have resulted in some of the increases in demand that we are now seeing, particularly in children’s services and adult social care.

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[Gareth Thomas]

On a point of order, Madam Deputy Speaker. The hon. Member for Sutton and Cheam (Paul Scully) referred to my local authority and omitted to mention that Hillingdon Borough Council gets double the funding of Harrow Borough Council. How can I get that appropriately reflected in the record?

[Madam Deputy Speaker (Dame Rosie Winterton)]

That is not a point of order but a point of debate. A lot of people want to speak in this debate, so Members should not raise spurious points of order. If the hon. Gentleman wants to intervene on the Secretary of State, he can do so.

Interventions should be short from now on, because there is a lot of pressure on time.

[Sajid Javid]

We recognise that our support to councils means nothing without the right funding and resources. To that end, we published the final settlement for funding local authorities in England a month ago. The settlement equates to a real-terms increase in resources to local government over the next two years—once again, it is worth reminding the House that it was a real-terms increase that the Labour party voted against. This settlement forms part of a four-year settlement that gives English councils access to more than £200 billion in funding in the five years to 2020. That gives councils greater freedom and flexibility over the money they raise, in recognition of the fact that no one knows their local areas—the opportunities, challenges and pressures there—better. This settlement strikes a balance between relieving growing pressure on local government and ensuring that hard-pressed taxpayers do not face ever-increasing bills.

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[Ruth Cadbury]

Does the right hon. Gentleman not recognise that the net loss of social rented housing was because of right to buy? I do not have a problem with the scheme in itself, but had the councils been able to replace the homes that had been sold under right to buy, there would have been no net loss of social rented housing in this country. Will he also answer the question that I just asked?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. May I say again that interventions need to be very short? I am sure that the Secretary of State will want to bring his remarks to a close soon without too many more interventions. If Members want to speak in this debate, they must bear in mind that we need to move on.

[Sajid Javid]

I suggest kindly to the hon. Lady that she reflects on the fact that more council houses have been built in the past seven years than were built in the previous 13 years of a Labour Government.

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[Sajid Javid]

Another important issue is, of course, children’s social care. Although some £250 million of funding has been dedicated to that sector since 2014 to help with innovation and to deliver better quality services, the recent local government financial settlement, which will lead to a real-terms increase over the next two years, will also help. None the less, I do recognise that there are longer-term challenges, and that is something that my right hon. Friend the Education Secretary is taking very seriously.

Undoubtedly, these have been very challenging times for local government, but we know what Labour’s response to that would be: it would be throwing more money at the challenge without a second thought. Never mind the working people who actually foot the bill for raising that extra money through more and more taxes. Instead, we ask councils to raise their game as we strive to rebuild the economy after the disaster that we inherited in 2010, and we back those councils not just with funding, but with greater freedom, flexibility and certainty so that they can harness their invaluable local knowledge and transform services. Many have done just this—driving efficiencies and innovating while continuing to provide a world-class service, and delivering lower taxes in real terms since 2010. Services have not just been protected; in many cases they are improving. Communities are being empowered through billions of pounds of local growth funding and devolution deals. These councils are doing an excellent job, and the people they serve deserve no less.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the Scottish National party spokesperson, let me again say that there is huge pressure on time in this debate. Therefore, after the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) has spoken, I will impose a six-minute time limit to start with. I urge colleagues to bear that in mind.