Local Government Finance

Debate between Rushanara Ali and David Simmonds

Wednesday 5th February 2025 Commons Chamber

[Rushanara Ali]

Perhaps the hon. Gentleman will listen. The Minister tried to respond to his comments but he was not interested in the answers, so he will sit down and listen to my closing remarks. I want to respond to hon. Members across the House who have taken these issues very seriously.

This Government have already invested £3.7 billion in social care. We have recognised the need for investment in response to the rise in national insurance contributions —up by £515 million, as my hon. Friend the Minister pointed out. We have invested £1 billion in SEND and £600 million in the recovery fund. That is a snapshot of the investment that we are putting in. Local government and local services were starved of much-needed support under the last Government. That is what we are trying to correct.

[David Simmonds]

Will the Minister give way?

[Rushanara Ali]

The shadow Minister has had his chance to make his points. It is my turn to sum up, and I want to address the points that have been made.

--- Later in debate ---

[Rushanara Ali]

No.

We are very serious about working with colleagues both in Parliament and in local areas to tackle these very serious challenges, which local authorities need us to address after 14 years of under-investment.

[David Simmonds]

rose—

[Rushanara Ali]

I am concluding my speech. The shadow Minister has had his chance.

--- Later in debate ---

[Rushanara Ali]

An exemplar contribution. The hon. Gentleman is absolutely right about ensuring that local authorities receive expertise and support, which is why the local audit office is so important. I know my hon. Friend the Minister for Local Government and English Devolution will work with him and his Committee to ensure we get it right, so that local authorities get the right support to ensure their finances are carefully managed.

I thank hon. Members once again for their valuable contributions. As I hope has been clear throughout the course of the debate, the Government are under no illusion about the scale of the challenges before us. There is no silver bullet to solve them. After 14 years, the idea that within the space of seven months all the underlying issues can be resolved is for the birds. I hope hon. Members, including the shadow Minister, recognise that we have to take the issues seriously. Just turning up and scoring points will not do the job. We have to recognise that there are serious issues and challenges. Where we can work together, we must.

I am conscious that I did not give way to the shadow Minister. If he wants to work with us, I am very happy to give way.

[David Simmonds]

I am grateful to the Minister. I think most of us, certainly on the Conservative Benches—this was acknowledged with gentle humour by a number of colleagues—are determined to work together in a constructive way, because we recognise that this issue has a huge impact, but I have to ask the Minister a question. She referred to an “investment” of £538 million in respect of national insurance contributions. Does she really argue that it is an investment to raise taxes on one group of people to provide a grant to our local authorities to pay another government tax? Would it not surely be better to go for a lower tax, higher growth agenda, rather than seek to tax our way into prosperity, which does not have the best track record in economic history?

[Rushanara Ali]

Perhaps the shadow Minister did not hear the opening remarks of my hon. Friend the Minister for Local Government and English Devolution, or my remarks, about what the Government have already invested in local government—billions. Does he want me to go over it again? There is not much time, Madam Deputy Speaker, but I suggest that he goes back and listens to the speech and those announcements. He knows that, in a very challenging set of circumstances, we have invested an additional £5 billion in local government. I hope very much that we can work on areas in which we can agree, but where we cannot, let us agree to disagree.

As I have said, there is no silver bullet that will solve the difficulties that we have to address, many of which we have inherited. Today is the start, not the end, of the process of reform and renewal, but with this settlement we have begun the task of putting councils on a sounder financial footing, fixing the foundations, and strengthening the sector for the long term. This will give councils the certainty and stability that they need in order to plan, move from crisis management to prevention, and deliver the change that the country needs: higher growth, higher living standards, more jobs, more homes and more opportunities as we rebuild as part of our plan for change. We are putting more money into people’s pockets, and putting stability, investment and reform first to deliver national renewal. We are putting Government back in the service of working people. I commend this settlement to the House.

Question put and agreed to.

Resolved,

That the Local Government Finance Report (England) 2025–26 (HC 623), which was laid before this House on 3 February, be approved.

Resolved,

That the Referendums Relating to Council Tax Increases (Principles) (England) Report 2025–26 (HC 624), which was laid before this House on 3 February, be approved.—(Jim McMahon.)

Oral Answers to Questions

Debate between Rushanara Ali and David Simmonds

Monday 20th January 2025 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

St Mungo’s has reported a 27% rise in rough sleeping in London under this Government compared with the same period under the last Government. Will this Government commit to removing the ringfences that they have introduced around the homelessness prevention grant, heeding councils’ calls to give them back the flexibility they need to get rough sleepers and homeless households into accommodation and avoid the cost shunts they impose on council tax payers?

[Rushanara Ali]

I thank the shadow Minister for his question. The fact is that this Government are investing record amounts of funding to tackle the root causes. That requires action on prevention, and we are working with councils to ensure that we address those underlying causes. We have inherited a mess—record levels of homelessness and rough sleeping—and we are determined to get a grip on it. That means action on prevention as well as addressing the impact of homelessness and rough sleeping, and that is what we are determined to do.

[David Simmonds]

One strategy that councils use to address homelessness is to move homeless households elsewhere in the country. That can be an appropriate response, but it needs to be done in consultation with the receiving authority. Does the Minister share my concern that Labour-led Rushmoor council is using the standards procedure to attack its own members for bringing this legitimate matter of concern to public attention?

[Rushanara Ali]

The shadow Minister will be aware that the shortage of housing is driving out-of-area placements. I am very happy to come back to him on his specific example, but the Deputy Prime Minister has written to councils setting out their responsibilities and that out-of-area placements should be a last resort. We will continue to work with councils to support them as they deal with the challenge of the underlying problem, which is the housing shortage and the crisis that has been left behind. We are determined to ensure that we get a grip by providing the support they need with funding, as well as the 1.5 million homes that this Government are determined to build.