Oral Answers to Questions

Simon Clarke Excerpts

Monday 15th June 2020 Commons Chamber

[Kate Osamor (Edmonton) (Lab/Co-op)]

What recent discussions he has had with Cabinet colleagues on the adequacy of funding for local authorities during the covid-19 outbreak.

[The Minister of State, Ministry of Housing, Communities and Local Government (Mr Simon Clarke)]

We have paid an unprecedented £3.2 billion to local authorities to address the pressures that they are facing in response to the pandemic, including £17.9 million to the hon. Lady’s own council, on top of an increase of £13.5 million in its core spending power this year. We have introduced measures worth more than £5 billion to help to ease councils’ immediate financial pressures. My right hon. Friend the Secretary of State and I are currently working closely with Cabinet colleagues on a comprehensive plan to ensure councils’ financial sustainability over the financial year ahead.

[Kate Osamor [V]]

I thank the Minister for his response, but the financial cost of covid-19 to Enfield council is expected to be more than £68 million and the Government have so far funded only a fraction of that burgeoning cost. The Minister is fully aware of local authorities’ statutory duty to provide a range of services to their communities. In the absence of fair funding, should local authorities begin making plans for more austerity to fill the funding gap by cutting vital services such as libraries, waste collection or adult social care?

[Mr Clarke]

The answer to that question is unequivocally no, they should not. As I set out in my previous answer, we are working closely with the Treasury on a comprehensive settlement for the sector, which we will bring forward in due course.

[Naz Shah (Bradford West) (Lab)]

The recent reports on disparity in the risk and outcomes of covid-19, published by Public Health England, confirmed that black and minority ethnic communities have been disproportionately affected by covid-19. What plans does the Minister have to ensure that areas that have been badly hit by covid-19, particularly those with large black and minority ethnic populations, receive the support necessary to recover from the social and economic effects of the outbreak?

[Mr Clarke]

The hon. Lady’s question is a good and important one. Obviously, that is something that the Government have published research on, and it is obviously a fast-evolving situation. We continue to work closely with councils that cover areas of high density of BAME population, including, for example, Bradford. We want to understand those pressures and as we do, then we will adjust our response accordingly.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op) [V]]

Hounslow Borough Council has identified spending pressures of around £15 million and income losses of £95 million due to covid-19, and the funding gap is rising. Our local authority is heavily dependent on aviation and my constituency has the fourth largest amount of furloughed employment. How do the Government plan to support partnerships between councils, industry, training providers and community organisations to ensure that our economic recovery and our community recovery go hand in hand?

[Mr Clarke]

The hon. Lady asks an excellent question. Clearly, it is important that local authorities and business work together. We have so far allocated a total of more than £103 million to Hounslow Borough Council precisely to help ensure that we support the whole community. That includes a generous settlement of grants for businesses as well as additional funding worth more than £14 million for the council. It is vital that any authority with particular issues—for example, links to aviation—that is struggling to make the books balance speaks to the Department and we will of course always be happy to offer detailed advice.

[Jeff Smith (Manchester, Withington) (Lab)]

What recent estimate he has made of the value of revenue lost by local authorities as a result of the covid-19 outbreak.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

What recent estimate he has made of the value of revenue lost by local authorities as a result of the covid-19 outbreak.

[The Minister of State, Ministry of Housing, Communities and Local Government (Mr Simon Clarke)]

We are working closely with the sector to develop a good understanding of the pressures that local authorities currently face. We have announced £3.2 billion of additional funding, councils will be able to defer £2.6 billion in business rates payment, and £850 million in social care grants were paid in April in a move aimed at helping to ease immediate pressures on local authority cash flows.

[Jeff Smith]

Manchester has lost £136 million in revenue this year alone. In Greater Manchester, the funding gap is £406 million. In the UK, it is £10 billion. The Minister just told us unequivocally that local authorities should not make plans for more austerity. Is he committing to fully fund those gaps?

[Mr Clarke]

As I explained in my previous answer, we will issue a comprehensive spending plan, which ensures that we do not leave local authorities facing unmanageable spending pressures in the year ahead. I point out that Greater Manchester councils have received £168 million of additional funding in response to the pandemic and their core spending power in this financial year increased by £150 million. I know that my right hon. Friend the Secretary of State has held detailed talks with Sir Richard Leese, and obviously an invitation to have further conversations as required always stands.

[Gerald Jones]

The financial position of Merthyr Tydfil and Caerphilly County Borough Councils, which cover my constituency, was difficult enough before the pandemic owing to years of UK Government austerity. Will the Minister commit to ensuring that the Welsh Government receive the funding they need for Welsh local authorities and the funding that the Prime Minister committed to Wales in February to tackle the effects of Storm Dennis? The impact of the floods and the pandemic have caused a hugely difficult situation for local authorities in my area and across Wales.

[Mr Clarke]

The winter storms have passed from memory, given everything that has happened subsequently, but they were terrible and had a significant impact on several communities, particularly on the west coast of the country. I am very conscious of that. We of course make a commitment that the funds that were promised will be paid. Local government is a devolved matter and therefore my Department does not engage directly with Welsh councils, but they can rest assured that they will receive their fair share according to the Barnett formula.

[Mr Speaker]

Off to lovely Lancashire with shadow Minister Kate Hollern.

[Kate Hollern (Blackburn) (Lab) [V]]

Thank you, Mr Speaker, but it is not so sunny today I am afraid.

The Government made a promise to councils that they would provide full support so that councils could do whatever it takes to get through the coronavirus crisis. According to Local Government Association figures released on 29 May, councils needed as much as £6 billion to cover the cost of coping with the ongoing pandemic. If things returned to normal, that was the Government’s promise. However, we all know it is obvious that things will not to return to normal in July. Will the Minister speak to his Treasury colleagues and keep his promise to cover the deficit faced by councils and prevent them from going over the cliff edge? I acknowledge the Minister’s earlier responses, but he has yet to give a complete commitment to funding councils’ deficit.

[Mr Clarke]

We are obviously very conscious of £9.3 million that we have given to Blackburn with Darwen Borough Council. It is crucial that we deliver a suitable funding settlement for local authorities. We are working hard with Treasury colleagues to do that. The hon. Lady can rest assured that we will bring further details to the House as soon as we are ready.

--- Later in debate ---

[Jane Hunt (Loughborough) (Con)]

What steps he is taking to support the renewal of local economies as covid-19 restrictions are eased.

[The Minister of State, Ministry of Housing, Communities and Local Government (Mr Simon Clarke)]

Obviously I very much welcome the fact that today is a big moment for all our local economies as shops reopen, which is really positive news. We have given councils, businesses and communities over £27 billion thus far to support them as we move to recovery from this pandemic. That includes almost £13 billion in business grants, which has so far supported 832,000 businesses, and the £50 million reopening high streets safely fund, which the Secretary of State referred to. Today we are also publishing the guidance on the £3.6 billion towns fund, which will enable 100 places across England to make further progress with their town deals.

[Jane Hunt]

I refer Members to my entry in the Register of Members’ Financial Interests. I have welcomed the super announcements to help business improvement districts with various funds, to support local economies through the uncertainty of the covid-19 pandemic. This has been a vital lifeline for Love Loughborough, the BID in my constituency. Given the need to ensure that our town centres have the resources they need to get back on their feet, what further steps are being taken to support BIDs as the lockdown restrictions are eased?

[Mr Clarke]

BIDs have a significant part to play in our high street regeneration programme, and they will be even more important given the setback we have all experienced during the first half of this year. That is why we have legislated to allow BIDs that were due to re-ballot this year to continue until March 2021 and have announced £6.1 million in emergency support funding for BIDs. I am pleased that the Love Loughborough BID—not one to be said unless you have a taste for tongue-twisters—will receive £12,747 from this additional fund.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

What criteria his Department uses to determine eligibility for the new building safety fund.

--- Later in debate ---

[Rob Butler (Aylesbury) (Con)]

What plans he has to support the regeneration of towns.

[The Minister of State, Ministry of Housing, Communities and Local Government (Mr Simon Clarke)]

Our £3.6 billion towns fund will create jobs and drive economic growth in towns across England, and the new high streets task force, along with our £50 million reopening high streets safely fund, will help local areas to kick-start the safe reopening of their town centres.

[Rob Butler]

The new unitary Buckinghamshire Council has ambitious regeneration plans for Aylesbury, which has garden town status, with an excellent masterplan already prepared. Will my hon. Friend confirm that funding will still be available from central Government for the imaginative and innovative garden town project, which will make Aylesbury a place where people will want to live, work, visit and invest, long after the coronavirus crisis?

[Mr Clarke]

Yes, I can. Well planned, well designed, locally led garden communities play a vital role in helping to meet this country’s housing need well into the future. As we announced at Budget 2020, the Government have demonstrated their support for the Aylesbury garden town through a £170 million housing infrastructure fund award, which should help to unlock its full potential.

[Rob Roberts (Delyn) (Con)]

What plans he has to help support people to buy their own home.

--- Later in debate ---

[Dr Luke Evans (Bosworth) (Con) [V]]

Hinckley business improvement district has worked over the past decade to increase footfall and reduce shop vacancies. In answer to my hon. Friend the Member for Loughborough (Jane Hunt), the Secretary of State talked about the vision that may well be in place. Will he expand on where he thinks BIDs should be in the future of driving forward such places as Hinckley post-covid-19?

[The Minister of State, Ministry of Housing, Communities and Local Government (Mr Simon Clarke)]

I thank my hon. Friend for his question, which is a very good one. As he rightly says, BIDs have a very important role to play in this regeneration. We see them at the heart of the process of making sure that the high street comes back stronger from this pandemic and that we make good progress in making sure that the high street is genuinely fit for the future. That means meeting the needs of modern consumer habits.

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

On the Westferry development, the Secretary of State has just told the House that the Department was advised of the conversation with Richard Desmond at the fundraising dinner before he overruled his own planning inspector to approve the Westferry development, but a whistleblower in the Department says that there is no record of the dinner appearing in official documents. That is potentially a serious breach of the ministerial code, especially as the Secretary of State himself has just admitted that it is a highly contentious application. Will he now confirm when and how he advised the Department of the meeting, given the question of bias that this issue raises?