Local Government Finance

Debate between Ruth George and Andrew Gwynne

Tuesday 5th February 2019 Commons Chamber

[Andrew Gwynne]

I am afraid that the hon. Gentleman has fallen into the trap that has been set by his own Ministers. We should not be talking about urban versus rural, or cities versus towns and villages. What is important is not how we cut an ever-diminishing cake differently, which is the approach of Ministers; we need to grow the cake. Politics is a question of priorities and Labour has set out very clearly how we would put more money into local public services, meaning more money for the hon. Gentleman’s council as well as more money for mine.

[Ruth George (High Peak) (Lab)]

I thank my hon. Friend for making the excellent point that this is not a dichotomy between rural areas, such as that which I represent, and urban areas. We cannot be robbing one area to give to another. The fact that this Government have cut and cut and cut means that costs are increasing in counties such as my county of Derbyshire. Local authorities have overspends on adult care purchased services and on children’s services because they have been cutting social services and early help. That is why councils are struggling all over the country.

[Andrew Gwynne]

My hon. Friend is absolutely right, and she is also right that it should not be about urban versus rural, but that is what the Government have made the situation with their approach to local government finance over the last nine years—this perverse reverse redistribution. The facts speak for themselves, and they should shame each and every one of us in this House.

We have seen a shift away from spending based on need and deprivation. The Secretary of State can shake his head, but nine out of the 10 areas seeing the biggest cuts to spending power per household, in pounds sterling, are all Labour controlled. Between 2010 and 2019, Hackney has seen a spending power cut of £1,406 per household, Newham a cut of £1,302 per household, Tower Hamlets a cut of £1,264 per household, and Knowsley a cut of £1,057.06 per household. It is worth noting that Knowsley is the second most deprived area in the country and has received the fourth biggest cut of any council. Nine of the 10 most deprived councils in the country have seen cuts of almost three times the national average. Blackpool, the most deprived area in England, has seen a spending power cut of £680 per household. Then there is Knowsley, followed by Hull, with a cut of £710; Liverpool, with a cut of £924; and Manchester, the fifth most deprived area, with a cut of £902 per household.

Budget Resolutions

Debate between Ruth George and Andrew Gwynne

1st reading: House of Commons
Thursday 1st November 2018 Commons Chamber

[Andrew Gwynne]

No, I am going to make some progress.

After all, by cutting funding to councils, Ministers have shifted the blame on to councillors, including Conservative councillors. Councils of all political persuasions and none are now at breaking point. The effects of that on our communities are plain to see across the country. More than 500 children’s centres have shut down and 475 libraries have closed. Support for disabled children has been stripped away—for example, the transport that helped them to get to school to learn like their friends. Support for older people has been slashed, with 1.4 million older people now not getting the necessary help with essential tasks such as washing and dressing. Bus routes have been cut. Our roads are in disrepair, and before the Government laud the £420 million for potholes, I must point out the £1 billion backlog created by this Government’s cuts. Swimming pools, leisure centres and community spaces have closed. Bin collections have been reduced. Youth clubs have closed. Planning departments have been stripped out. Trading standards offices have been slashed, leaving more people at risk of fraud or dodgy goods. Streetlights have been turned off to save money.

[Ruth George (High Peak) (Lab)]

We see the impact of all those cuts in Derbyshire, where elderly people are not receiving care packages, early help for children is being cut and libraries are threatened. Does my hon. Friend agree that the cuts are actually contributing to long-term growth in the numbers of older people in hospital and children being taken into care? The cuts are not only cruel, but a false economy.

[Andrew Gwynne]

My hon. Friend is absolutely right, because all this does is shunt costs on to other parts of the public sector. That is not a sustainable way of continuing. Sadly, I could give many more examples, yet the Government’s answer to these problems is not to drop the £1.3 billion cut to funding next year, nor to properly address the crises in social care and children’s services, but to offer mere crumbs from the table, which will do little to fix the problem that has been created.