Local Government Funding

Ruth Cadbury Excerpts

Wednesday 28th March 2018 Commons Chamber

[Andrew Gwynne]

Of course, the hon. Gentleman did not want to tell me where the £1.7 billion for the shortfall in children’s services was coming from. I know that in Cumbria there is a shortfall in funding for children’s services, as there is in every other county council in England. Every metropolitan district council in England and unitary councils across England are all saying the same thing. Perhaps he ought to speak up for Cumbria and get the extra money for Cumbria’s children’s services.

The result of the cuts has been appallingly clear. Cuts to early years intervention have meant a record number of children, some 72,000—let us stop and think about that—taken into care last year. The number of serious child protection cases has doubled in the last seven years, with 500 new cases launched every day. More than 170,000 children were subject to child protection plans last year—double the number seven years ago.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Like my hon. Friend, I too was a councillor—for 25 years. Does he agree that the removal and slow cutting of early intervention services, specialist family services and support and grants for charities that support people and families in the community over the past seven or eight years is part of the reason why too many children are coming into children’s services, too late and with too many serious problems?

[Andrew Gwynne]

My hon. Friend is absolutely right. We had numerous debates in the Parliament from 2010 to 2015 about children’s services and in particular the cuts to Sure Start. I think Sure Start had the basis for being one of the previous Labour Government’s greatest achievements, had it been allowed to remain in place, fully funded in the way that Labour intended. What used to gall me the most was Member upon Member on the Government Benches saying that Sure Start was a waste of money and did not work. Sure Start was never intended to be a quick fix. Government Members can tell me in 20 years’ time, when the children and parents who went through Sure Start are parents and grandparents themselves, whether Sure Start worked or not. I believe that one of the biggest tragedies of the David Cameron era of Government was the slash-and-burn approach to early years.

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[Sajid Javid]

I gently say to the hon. Gentleman that he is demonstrating his ignorance of how Government financing works. If he really thinks that that is issue, perhaps he can explain why that figure includes £65 million for affordable housing returned by the Mayor of London? Has he asked his colleague that question? Perhaps he can also explain why in Labour’s last full year in office, when the current shadow Housing Minister, the right hon. Member for Wentworth and Dearne (John Healey), was the Housing Minister, £240 million of housing and regeneration funding was returned?

[Ruth Cadbury]

The right hon. Gentleman lists several initiatives by several councils, but how many of those initiatives will make up the £6.8 billion by which the cross-party LGA estimates that councils will be in deficit? His Government have kindly offered £1.3 billion, so how will all those initiatives make up that enormous gap? I do not believe that it is possible. Finally, what has he done to ensure that his Department is no longer the worst funded of all Departments? It is facing the greatest cuts, and the greatest number of services across the pitch are being affected.

[Sajid Javid]

I will come on to the local government financial settlement shortly, but if the hon. Lady is so concerned about the resources that local government receives, why did she vote against a real-terms increase for the next two years for local authorities? She can perhaps reflect on that while she waits.

Returning to the reforms that councils are making, some authorities are opting for unitarisation. In Dorset, for example, the nine existing councils will be abolished to create two new unitary councils, generating annual savings of approximately £28 million. I have announced that I am minded to replace the existing five councils in Buckinghamshire with a single council for the area, which could generate savings of £18 million.

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[Sajid Javid]

My Department is very much involved in the preparations for Brexit. We have attended several recent EU exit committee meetings and we are involved. The hon. Lady should wait and see what happens. In due course, she will learn more about my Department’s approach.

In expanding the pilots, we have responded to what councils have told us, and we are doing the same in other areas. For example, the housing infrastructure fund recognises the crucial role that councils play in helping to deliver the homes that our country desperately needs, by providing billions in additional finance to support new development. We all know that we cannot achieve the new housing we need without having in place the right infrastructure, including schools, healthcare facilities, transport links and other essential types of infrastructure. We have received a staggering 430 bids, worth almost £14 billion, to deliver 1.5 million homes. That demonstrates the incredible ambition out there to tackle the housing crisis—an ambition that we are keen to get fully behind; hence our move to more than double the housing infrastructure fund at the autumn Budget, in which we dedicated an additional £2.7 billion, bringing the total to £5 billion. I was delighted recently to announce the first funding allocation of £866 million for 133 projects that will help to unlock some 200,000 additional homes. The work under way with a total of 45 local areas to deliver major infrastructure projects worth £4.1 billion could potentially deliver an additional 400,000 homes.

In his remarks earlier, the shadow Secretary of State talked about house building having fallen to its lowest levels since the 1920s—I think that is what he said. He is right about it having fallen to its lowest level since the 1920s, but he is wrong about when it happened. It happened in the last year of the previous Labour Government, when the current shadow housing Minister, the right hon. Member for Wentworth and Dearne (John Healey), was the actual housing Minister. Since then, it is up by more than 50%.

I recently announced almost £300 million of funding for housing deals in Greater Manchester, the west of England and Oxfordshire, and a housing deal for the West Midlands. The West Midlands deal backs the mayor’s ambitions to build some 215,000 homes by 2030-31. Isn’t Andy Street doing a fantastic job, Madam Deputy Speaker? You do not have to answer that. Those deals represent another important step towards meeting one of the defining challenges of our time, as do the measures we are taking on social care.

[Ruth Cadbury]

In the last year of the Labour Government, there were 40,000 social housing starts. How many were there in the outgoing financial year?

[Sajid Javid]

Since 2010—since the change in Government—more than 300,000 affordable homes have been built. The hon. Lady mentioned the previous Labour Government and social housing. Interestingly, she did not point out that under the previous Labour Government, who were in power for 13 years, the number of social housing units for rent fell by 421,000. If she was really interested in this, she would stand up again and apologise—

[Ruth Cadbury]

rose—

[Sajid Javid]

If the hon. Lady is going to apologise, I will take her intervention.

[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.