Local Government Funding

Debate between Siobhain McDonagh and Bill Esterson

Monday 6th December 2010 Commons Chamber

[Siobhain McDonagh]

Perhaps now I should take the opportunity to explain to the House and the hon. Gentleman just why I am not sure that my local residents will feel exactly the same way. Most Members will not have heard of my local council—Merton. It is a quiet, low-profile London borough. It is not the poorest or the most exciting. It generally gets on with it, whether it is Labour or Conservative-run. It is a council that likes to sweep the streets, collect the rubbish and look after people as best it can. Its services are not perfect and could improve, but most of the time it does its best. I suggest that the same applies to most of the councils represented by hon. Members.

Merton council needs time to change and to get about sharing services, but that time does not exist if those spending figures are to be released next week. Next week, we will learn the figures and by 5 March my council has to say what its budget is for next year. If I know anything about local government, it is that huge reforms are not brought about in three months.

Merton council will have to make cuts of £24 million this year—that is for the cuts it anticipates and those it will have to make because of an expanding need for services, such as school places and care for the elderly. That is £24 million out of a budget of £150 million. The people on that council are not people who squeal and they are at a meeting tonight just trying to get on with it, but how will they do this? They have already identified £10 million of cuts this year, which is the largest figure ever at this point in a financial year for the next. They hope to get to a figure of £14 million by January, but the following £10 million will be really hard to find.

[Bill Esterson]

rose—

[Siobhain McDonagh]

I cannot give way, because I do not wish to take up too much time—I hope that is okay. The people on the council are finding that task hard, not because they do not want to do it and not because they do not want to bring about shared services, but because they cannot do it in the time available. As they seek to cut that last £10 million, the only opportunities left for them are to go for public services, for the voluntary sector, for the youth service—even though they do not want to do so—for personal care for elderly and disabled people and for the costs of special needs transport. That is because those areas are traditionally where councils have gone when they need to make cuts quickly. Those cuts will be devastating and what we are doing should not be about that.

I hope that the Minister will have taken that on board in any work he has been doing behind the scenes over the past few months with his fellow Ministers and will give councils such as mine time to bring about changes in their services. There is this idea that, somehow, boroughs all over the place will want to work with Merton council. I do not think it is Merton council’s fault, but not too many want to come in for conversations about that. This year, the council will be combining with another council and one big department to save £2.5 million. We want to do more of that, rather than the terrible things that I have just suggested, but we do not have the time and the ability to do so. Councils simply do not have the capacity not only to run services but to do the sort of consultation and detailed legal work that is needed. Their only other recourse is to go out to private consultants and the cost of that is wrong and prohibitive at a time when every pound matters.

This year, Merton will share a head of legal and civic services with Richmond upon Thames council. I hope that that will be the stepping stone to more joint working over the coming years, but in an effort to make the cuts this year all our councillors will do things that we would rather they did not. Our constituents will ask us to defend them at the same time as our Labour groups and our Conservative groups will say to us, “Don’t have a go at us. It’s you lot who decided this.”

We are going through a very difficult time and I plead with the Minister to give councils as much time as possible to reform their services, to consider how they can do things and to consider being ingenious. The idea that many of them have been doing nothing year in, year out and that they have not been making cuts already is completely not the case.

Let us consider adult social care. I do not know how other hon. Members feel, but I rage when I hear about the £2 billion fund because personal care is the biggest budget, outside the schools budget, that local authorities have to cut. That £2 billion is available because councils will be doing some pretty awful things, such as considering older people’s eligibility for domiciliary care or to go into homes. That is what we are facing. If we have the opportunity, we need to stand back and give councils more time to reform and to do things differently. Otherwise, the choices are particularly painful—not for us, but for some of our most vulnerable constituents.