Local Authority Financial Sustainability: NAO Report Debate

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Department: Department for Levelling Up, Housing & Communities

Local Authority Financial Sustainability: NAO Report

Thelma Walker Excerpts
Tuesday 20th March 2018

(6 years, 1 month ago)

Westminster Hall
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Mike Amesbury Portrait Mike Amesbury
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I agree. It took the Conservative leader of Surrey County Council to threaten a referendum on a 15% council tax rise to get any response at all from the Government. Even then, they just placed further accountability on local taxpayers. I am surely not the only person who was a little concerned that a financial crisis so grave that it required a 15% council tax rise in one of the wealthiest areas of the country appeared to go unnoticed for so long by so many local MPs. It is all the more worrying that those MPs include the Minister of State for Housing, Communities and Local Government, Ministers of State for Education, the Secretary of State for Health and Social Care, and the Chancellor of the Exchequer. Is it any wonder that Ministers do not appear to realise that we have a cash crisis in councils, schools and the NHS?

Thelma Walker Portrait Thelma Walker (Colne Valley) (Lab)
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The NAO report shows that the number of looked-after children has increased by 10.9% since 2010, but the Chancellor failed to offer local authorities any additional support to address that in the Budget or the spring statement. Does my hon. Friend agree that the Government must act to provide more funding to support looked-after children?

Mike Amesbury Portrait Mike Amesbury
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Certainly. In fact, there will be a £2 billion shortfall by 2022, so there is a real crisis in children’s services.

One of the other Surrey MPs happens to be the Environment Secretary. Given his experience of dealing with the outcomes of difficult referendums, I cannot imagine why he was not keen to support that one.

Many colleagues in the Chamber and beyond will know that although cuts have hit the poorest areas hardest, the damage is not limited to them, as the Local Government Association rightly points out. Rising pressures on social care, transport and other services cut across borough and political boundaries. As such, I wish the Defence Secretary all the best with his petition to save bus services in Staffordshire—I hope he gets a sympathetic ear from the council. Many in the Chamber might have been a little surprised that he addressed his concern locally rather than nationally, where the real fault lies, but raising it nationally might have resulted in the Chancellor informing him to shut up and go away—a statement that the Defence Secretary is all too familiar with.

--- Later in debate ---
Heather Wheeler Portrait Mrs Wheeler
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Much as I would love to do that, I think the safest thing I can do is refer the hon. Lady to the new funding for schools. Every single school has not had a reduction under the new fairer funding; every single school has had an increase of at least 1%.

Thelma Walker Portrait Thelma Walker
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rose

Emma Hardy Portrait Emma Hardy
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Will the Minister give way?