East Midlands Economy

Toby Perkins Excerpts

Tuesday 7th September 2021 Westminster Hall

[Ben Bradley (Mansfield) (Con)]

I beg to move,

That this House has considered the future of the East Midlands economy. 

It is a pleasure to serve under your chairmanship, Sir David, to be just on time and to bring this important debate to the House about the economy of the east midlands, which follows on from the Adjournment debate I held in July about devolution for our area. It has been a busy summer and lots of progress has been made on the proposals and on wider developments and major projects that I hope to put across to the Minister this morning.

It is clear that the east midlands has huge untapped potential and must be at the heart of the Government’s levelling-up plans in the spending review and the levelling-up White Paper this autumn. I hope to take the Minister through some of those developments this morning. As Members might imagine, as a Notts MP and the Nottinghamshire County Council leader, I will have more to say on Nottinghamshire, but I trust and hope that colleagues will chip in about the proposals and opportunities across their constituencies.

For context, the east midlands is home to over 5 million people and over 175,000 businesses. We have a diverse mix of counties and cities, with market towns, countryside, and distinct cultures and communities. It contains world-class business, innovation and manufacturing excellence, and the region’s economy of £99 billion has untapped potential for growth. Despite that critical mass and potential, the east midlands has received some of the lowest levels of Government investment and private investment over many years compared with other parts of the country.

Back in July, I met the Prime Minister and laid out four huge opportunities for the east midlands that can create jobs, unlock housing and growth, and get the region up to a level of support and investment that is in line with other parts of the country. Those major interventions are all coming together this autumn, with a number of key decisions on which the Government need to come down on the side of investment and development in our region.

First, the East Midlands Development Corporation—the devco—represents a major opportunity to regenerate and to create jobs and homes on key sites. It gives us the opportunity to masterplan our area to ensure that we are bringing forward the very best employment opportunities; that we are leading the way on green growth and environmental policy; and that we are offering investors a very attractive opportunity to simplify the planning process to get things done at pace. It currently sits over three sites, but in the future, with the right democratic oversight, it could be used to bring forward further sites across our region.

This development vehicle could be a major weapon in our armoury, with the right Government backing. If we can utilise it effectively into the future rather than continuing to adopt a piecemeal approach, with all sorts of different vehicles and delivery mechanisms popping up all over the place, we can take a long-term strategic approach to our region’s growth. Therefore, key decision No. 1 is to back the development corporation in the planning legislation this autumn, and give it the powers and guarantees it needs.

Secondly, there is the east midlands freeport. Colleagues lobbied hard last year to secure the east midlands as one of the key sites for a freeport to take advantage of our post-Brexit trading opportunities and to boost business and jobs in our region with a unique proposition: the only inland freeport in the UK, built around an airport rather than on the coast. This has the potential to act as a hub and as the heart of the wider freeport network, as well as the logistical centre of the UK, with its key geographical location and proximity to major road, rail and air connections.

The outline business case will be submitted this week. Once again, I and MPs across the region call on the Government to back us to help deliver this freeport, along with the council and business partners; to support our vision to level up the east midlands; to create jobs and opportunities for people in our region; and to maximise the potential of this package of projects I am going through today. The whole will be bigger than the sum of the parts if these actions can be taken in unison.

[Mr Toby Perkins (Chesterfield) (Lab)]

I congratulate the hon. Gentleman on securing the debate. He is making a powerful case about the need for investment, but that case is fundamentally undermined by the Government’s constant dithering on the eastern leg of HS2. I have never known a Government to spend so much money on a project so unenthusiastically. Over the summer, we have again seen the suggestion that the eastern leg will be cancelled. Does the fact that the Government will not once and for all commit to the eastern leg of HS2 not fundamentally undermine the case he is making?

[Ben Bradley]

I thank the hon. Gentleman for his intervention; he has neatly predicted my next paragraph, which is about the integrated rail plan and Toton. All sorts of rumours have gone around over the summer. As the chair of the east midlands HS2 delivery board, I have had a lot of conversations with Ministers and officials about this matter and have pushed for the certainty that he asks for. HS2 is a major opportunity for the east midlands. I recognise that it is not universally popular, so I am not going to go on about the benefits of the eastern leg in full or the wider project, but this is a debate on the east midlands, so I will focus on the local part.

The key, for us, is that Toton is a major centre for our future growth. It is a site where we have invested almost a decade of work and planning, and tens of millions in infrastructure and preparation, including direct tram connections to Nottingham city, where there is huge interest in investing in skills, research and innovation, as well as in commercial and residential development. Success for Toton could unlock plans to the north, around Chesterfield and Bolsover, for a major engineering centre built around HS2, which has the potential to create 2,500 jobs in an area of north Nottinghamshire and north Derbyshire that should be at the heart of the levelling-up agenda. Those are former coalfield, post-industrial towns—the epitome of the kind of red wall areas that need support and to which we made big promises of support at the last election.

--- Later in debate ---

[Mr Toby Perkins (Chesterfield) (Lab)]

I congratulate the hon. Member for Mansfield (Ben Bradley) for securing the debate because it is an incredibly important one. I enjoyed the case he made for the need for investment and focusing that on Toton. However, there was an elephant in the room during his speech and that is HS2. I do not believe that the plans he outlined are credible without HS2. He seemed to be making the case that the infrastructure can happen with or without HS2, and I simply do not buy it. HS2 is fundamental to that investment in our region and to the interconnectivity that he and my hon. Friend the Member for Nottingham South (Lilian Greenwood) spoke about.

I came into this place in 2010 and I have been through four elections in which the Conservative party has spoken about their commitment to HS2 and the midland main line infrastructure and electrification. Throughout those four elections, the consistency of the Government’s message on investment in the east midlands has been matched only by the consistency of their failure to deliver that spending. I have been an MP for 11 years and in every term of those four Tory Governments, we have had big promises, let-downs, dither and delay.

When the Minister gets to his feet, he has an opportunity to tell us finally that the promises made in 2010, 2015, 2017 and three months after the 2019 election that the eastern leg of HS2 would be delivered is not—as the Government are constantly briefing—about to be pulled from under our feet, but that there is actually that commitment. When people look back on this era of politics, they will find it incredible that for 11 years a Government had its biggest infrastructure project yet looked so unenthusiastic about it. I cannot think of any other Government policy in history that has been supported more by the Opposition than the Government themselves. That is the reality with HS2.

It is true that our region is taken for granted and ignored. My hon. Friend the Member for Nottingham South referred to the difference in transport spending between the east and west midlands. In the east midlands, the average transport spending per head is £287.32. Just across in the west midlands, it is £489.70 per head. Almost twice as much is spent on transport in the west midlands as in the east midlands. Why is that?

The reality is that I am a very unusual Member of Parliament. I am a Labour MP in the east midlands who is not from a city. There are 37 MPs in the east midlands who are not in Nottingham, Derby or Leicester, and 36 of them are Tories. This Government absolutely take the east midlands for granted, and why should they not when right across the east midlands they see Tory MPs elected while they fail to invest in our region? Of course they will think the voters of the east midlands will comfortably vote for them.

My party has a big responsibility to face our electoral failure over the last 11 years. I look across the hall to lots of colleagues whose constituencies were Labour for many years. They are in those seats now, and the voters of the east midlands and my party need to consider if we are going to get investment in the east midlands, it needs to be a more competitive area because this Government believe that they can take it for granted.

The hon. Member for North East Derbyshire (Lee Rowley) referred to the Staveley bypass. That is something that he and I are very committed to. I did a recent survey and know that there is huge support in my constituency for that bypass; it is something that has been spoken about over many years. Derbyshire county council needs to speed up the process of delivering the bypass, as many of the projects that were announced at the same time are now much further ahead. I would like the Minister to know that there is a real cross-party commitment to going ahead with the Staveley bypass, and I hope that we will soon have good news about it.

The east midlands region is crackling with innovation and with a desire to get on and deliver, but, as the hon. Member for Loughborough (Jane Hunt) said, it is being held back by a failure of investment in our region. We really need to see that turned around now.

[Ruth Edwards (Rushcliffe) (Con)]

It is a pleasure to serve under your chairmanship, Sir David, and I congratulate my hon. Friend the Member for Mansfield (Ben Bradley) on securing this debate.

I think those of us here in this room are all incredibly lucky because we represent a vibrant, dynamic and creative region. As other Members have said, we are the heart of the UK’s logistics and manufacturing industries; the right hon. Member for Derby South (Margaret Beckett) talked about the industrial jaws of the United Kingdom. I was fortunate to be able to visit JCB in the constituency of my hon. Friend the Member for South Derbyshire (Mrs Wheeler), and see the amazing innovation that has been taking place at its Foston plant, where it has invented the world’s first hydrogen-fuelled combustion engine.

We are leaders in food and drink; we have some fantastic companies in my constituency of Rushcliffe—perhaps too fantastic, as I do not think they did wonders for my figure over lockdown. We have fantastic stilton producers at Cropwell Bishop and Colston Bassett that, contrary to counter claims made by my hon. Friend the Member for Rutland and Melton (Alicia Kearns), produce the best stilton in the world—whatever she may say. We also have wonderful wine producers such as Hanwell wine estate and Eglantine vineyard; we have a thriving farming sector across the region; and we are leaders in so many different types of green technology. I have mentioned hydrogen at JCB, but we also have the GeoPura headquarters in my constituency, whose hydrogen generators are powering everything from festivals to film sets. We are leaders in biodiversity restoration; we have BeadaMoss in East Leake, Rushcliffe, micro-propagating sphagnum moss to be used to restore peatlands and to create new growing mediums that will replace peat in several years. The statistics back up what I am saying. We have fantastic innovators across the region; 90% of manufacturers have innovated in the last two years; 96% plan to do so again in the next two years.

We do have our problems, and they have been set out very clearly by Members on both sides of the room today. Our productivity is below the national average; we have a polarised workforce with a lot of people in very highly skilled jobs—based around our universities and our tech companies—but we also have many people in much lower paid jobs. The average income in the east midlands is £70 a week below the national level. We also suffer from low public sector investment; we have the lowest levels of public expenditure and transport spending per head.

We have also suffered, perhaps, from a lower profile than other areas of the country. The west midlands, for example, has one focal point provided by the city of Birmingham and its Mayor. Its share of funding has reached parity with the average amongst English regions in the last few years; we in the east midlands still have only 75%. We hear a lot about levelling up and we see a lot of Government Ministers going to Teesside and the west midlands; we see their Departments following them there. If levelling up is going to spread opportunity over the whole country then it is going to have to involve more places than just Teesside and the west midlands—however wonderful they may be. One of the places that really needs that focus and support from Government is the east midlands.

[Mr Perkins]

I totally agree with what the hon. Lady is saying. Is not the point I just made the reality? Areas such as the west midlands and the north-east are politically competitive. Here, the Tory party is able to take for granted that it is going to get Tory MPs elected and that is why we have failed to get the investments of some of those other regions. Is not electing more Labour MPs the answer?

[Ruth Edwards]

No, I do not agree with that. We are in a debate today that has been called by a Conservative Member and is attended by lots more Conservative than Labour Members, so I do not agree with the hon. Gentleman.

[Mr Perkins]

We haven’t got many—that is the point.

[Ruth Edwards]

Maybe that says something about how voters in the east midlands feel the hon. Gentleman’s party has taken them for granted. As a result, they have returned Conservative colleagues, who are here today fighting for more investment in the east midlands.

If everybody in every community having a fair chance at life is what levelling up is about, if it is about people being able to benefit from strong public services such as a great education and having the opportunity for a great career, wherever they live in the country, we have to focus on areas such as the east midlands that have, historically, been underfunded and have not had the Government focus that they should.

We have some great tangible opportunities right now in the east midlands to reverse that. The one I have been most closely involved in is the east midlands freeport, which would cover three sites: one in Leicestershire, one in Derbyshire and one in Nottinghamshire in my constituency of Rushcliffe, based at the Ratcliffe-on-Soar power station site, which is being decommissioned in a few years’ time. The east midlands freeport would create more than 58,000 jobs and would see investment in skills, research and development. It would see Ratcliffe-on-Soar transformed into a centre for new energy technologies and a zero carbon academy, creating those high-skilled jobs and fantastic careers that we have been discussing this morning. It will also enhance and build on existing partnerships between academia and business across the region, which we need to capitalise on. It will be the best connected freeport in the country: it will connect East Midlands airport to global markets and, in doing so, will connect the companies at the heart of our manufacturing and logistics industries to it too. It will also connect the east midlands via road and rail to the wider network of freeports across the country and, in that way, offer us a national as well as a regional opportunity.

The second opportunity is HS2. I appreciate that it is not the responsibility of the Minister’s Department, but I hope he takes away the message of frustration from colleagues on both sides of the House at the length of time it is taking to get a decision about the eastern leg. We have seen a vaccine created and rolled out across the United Kingdom in less time than it has taken to make a decision about the form in which HS2 is going to come to the east midlands, if it comes at all. I hope the rumours that it is going to be axed are not true.

HS2 has great potential. It would add £28 billion to the region’s economy every year. It would increase east-west—a well as north-south—connectivity, which is vital. Today, we talked about how connectivity and trains are important, but it is about more than trains. It is about massive redevelopment at Toton. It is about improving local transport connectivity across the region. It would send a clear signal from Government that we are investing in the east midlands, that the east midlands is not the poor cousin of the west midlands, that it will not be left behind and that we are committed to making sure that the east midlands shares in the levelling-up agenda. I hope the Minister can give us some assurance that that will be the case. I certainly hope that he will take the message back from the debate to his colleagues in the Department for Transport and I also hope that we can hear something about his support for the east midlands freeport, which is something that he knows Members on both sides have been working hard to support. We have an excellent bid now—one that capitalises on our net zero potential, our connectivity and creating highly skilled jobs and training across the region, which is much needed.

--- Later in debate ---

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

It is a pleasure to see you in the Chair, Sir David, and I thank you for the opportunity to reply to the debate on behalf of the Opposition. I congratulate the hon. Member for Mansfield (Ben Bradley) on securing the debate. I agree with him that the Government need to come down on the side of investment and innovation in the region.

I also thank the other speakers, who made important contributions. My right hon. Friend the Member for Derby South (Margaret Beckett) gave us an important reality check on the Government’s actions and made the vital point that, in order for the economy to flourish, work needs to be properly paid. We need stability and skills, without which businesses and the economy cannot thrive. My hon. Friend the Member for Nottingham South (Lilian Greenwood) made an important point about the cut to universal credit, which is taking money out of local economies. She also exposed the lack of transport investment in the region over a long period of time.

My hon. Friend the Member for Chesterfield (Mr Perkins) talked about the importance of HS2 and focused on the inequality of transport spending in the region—not just on rail, but on things such as the Staveley bypass. Road transport is important as well. My hon. Friend the Member for Nottingham East (Nadia Whittome) talked about the impact of Government policy and cuts, the vital importance for the future of green jobs, and transparent devolution deals.

We have heard lots of good words about the future of the east midlands economy. The east midlands does not operate as a single entity, with a regional centre, like my own in Greater Manchester, which is why so many Members from different parties have spoken about how vital transport links are, which I will return to shortly. It is instructive to compare the east midlands with other regions. Compared with the rest of the country, east midlands GVA growth figures are lower and there are lower levels of investment, especially Government investment. Productivity is lower, more people than average are in insecure work, a higher number on zero-hours contracts and median gross pay is lower. Of the 446,000 key workers across the east midlands, 40% are paid less than £10 an hour. There is work to do to fulfil the great potential of the region.

People in the east midlands are significantly more likely to be employed in manufacturing than in the rest of the UK. That is a distinctive, important and good feature of the region, although a number of those jobs are in lower-value manufacturing, which is more susceptible to economic shocks. With traditional manufacturing in decline, it is important to consider alternative options for the future. We have heard from several Members about good work already underway, seeking to boost jobs and prosperity in the east midlands, and release the potential of the region that we have heard about so often.

The importance of East Midlands airport, along with the rail freight terminal, is key. A number of Members talked about that and the work of the East Midlands Development Corporation in aiming to link the HS2 station at Toton with the airport. We also heard about the development at the Ratcliffe-on-Soar power station site, which is another important growth opportunity for the region. There is good partnership work going on, driven by groups such as the midlands engine partnership and Midlands Connect. We also heard about the plans for the east midlands freeport. Many might question the overall strategy of freeports creating growth across the country, but it is undoubtedly a good opportunity with potential for the east midlands region.

We have not focused so much today on the hard work carried out by local authorities, which have been at the frontline fighting the covid pandemic, and will now play a crucial role in their communities’ recovery. They need to be funded properly, so that they can play their full role as place-makers, driving growth for the region. Having imposed £15 billion cuts on local authorities over the past 10 years, unfortunately the Government recently broke their promise to compensate local authorities fully for their costs in tackling covid-19, leaving some of them with very big funding gaps and putting local services at risk.

The piecemeal funding pots that we have heard about, such as the levelling-up fund, which pit regions and nations against each other for vital funding, do not make up for a decade of cuts to local communities. We need support for people who live in the region, as we heard from my hon. Friend the Member for Nottingham East. The universal credit change will hit almost 390,000 families in the east midlands, pushing many into hardship. Cutting the budgets of those families who need it most is not only wrong, but bad economics. That £1,000 a year is money that could be spent on local high streets in the east midlands. Instead, it will be taken out of the economy just as we are trying to recover.

It is clear that East Midlands airport is key for jobs in the region and future economic ambitions but, like other regional airports, it has suffered through the lack of an adequate sectoral support package from the Government. The Labour party has advocated a sectoral deal for aviation that protects jobs and the wider supply chain, safeguards the environment, and ensures that companies benefitting from the aviation sector rebase their tax affairs in the UK. If regional airports such as East Midlands airport are not given adequate help through the challenges of covid, the local economies that depend on them will be undermined.

We have heard a number of times that a key priority for the region should be improving connectivity. The eastern leg of HS2 is vital for economic growth in the east midlands. The potential indefinite postponement would be a massive blow to the economies of the cities and counties of the region. I look forward to assurances from the Minister that the leg will go ahead as promised, as requested by many Members this morning. If this is another broken promise from the Government, it will be a betrayal of the communities in the east midlands.

[Mr Perkins]

My hon. Friend is right about the uniformity of view that the east midlands has had a poor deal from this Government. We expect, during such debates, for Labour MPs to be critical of the Government; that is the role of the Opposition. However, were we to put together a Facebook video of the criticism of the Government in the debate, it would include excellent speeches from the hon. Members for Loughborough (Jane Hunt), for Rushcliffe (Ruth Edwards) and for Broxtowe (Darren Henry) about the east midlands being left behind under a Conservative Government. Those, too, would be compelling pieces of evidence.

[Jeff Smith]

My hon. Friend makes an important point. I hope that the Minister is listening to his own side, not just to Labour. We have been making this case for a long time, but it has been made strongly, as my hon. Friend says, on both sides of the Chamber.

There is a strong view that the biggest single thing that the Government could do for the east midlands economy would be to improve transport and connectivity, including the full electrification of the midland main line—a continuation through Leicester up to Sheffield. Apart from the environmental benefits, that would reduce journey times north and south. There is the Robin Hood line and the restoration of direct trains from Leicester to Coventry: the only significant cities anywhere in the UK that do not have a direct rail connection. A Government commitment to those kinds of transport investment would be real evidence of levelling up for the east midlands, which has, as we have heard a number of times, the lowest transport investment in the UK.

The final issue that I will mention, though certainly not the least of them, is the emergence of new green industries, which has, again, been mentioned by those on both sides of the Chamber. Labour believes that it should be a priority of the Government to bring forward a green new deal and an ambitious package. We are proposing £30 billion of capital investment to support the creation of up to 400,000 new low-carbon jobs. There is engineering and manufacturing expertise in the east midlands that should be well placed to make the most of those new opportunities, and the east midlands should get its share of the jobs of the future.

Labour wants to see the east midlands thrive, along with our regions up and down the country. We need to address regional imbalance. The UK economy was already highly regionally imbalanced—perhaps the most regionally imbalanced major economy in Europe—well before covid hit. The pandemic restrictions have made existing inequalities worse. The uneven impact of lockdown on different sectors means that some areas have been much more affected than others, and the Government’s ill-defined levelling-up concept needs to address those inequalities. It must mean good-quality, secure work and job creation that helps us meet our climate ambitions. It has to mean a fair social security system for anyone who cannot work, whether due to economic shocks or illness.

Future economic success must mean the Government giving local areas the investment that they need to recover from the covid pandemic and rebuild strongly, with opportunities on everybody’s doorstep. We cannot afford any more broken promises from this Government. That is our challenge to the Minister.

Greensill Capital

Toby Perkins Excerpts

Tuesday 13th April 2021 Commons Chamber

[Paul Scully]

The review specifically looks at supply chain finance and the discussions with Greensill. As I say, Nigel Boardman will do his work and report back at the end of June.

[Mr Toby Perkins (Chesterfield) (Lab)]

I have written to Ministers on behalf of businesses in Chesterfield—many other MPs have written too—and have waited months for a reply while a business was on the brink, yet Greensill gets 10 meetings in three months with Treasury officials, and the junior Minister has the audacity to stand there and say that this is a system working well. When David Cameron was the Prime Minister, he said corporate lobbying was

“money buying power, power fishing for money and a cosy club at the top making decisions in their own interest.”

He could not describe this grubby, shabby Government any better, could he?

[Paul Scully]

Treasury Ministers, like other Ministers, have had a number of meetings with lenders of all sorts, because as we heard earlier it is so important to have a diversity of lenders involved to create an understanding of their model and what support they can give. The accreditation itself was determined independently by the British Business Bank.

Levelling Up

Toby Perkins Excerpts

Tuesday 16th March 2021 Commons Chamber

[Eddie Hughes]

I can absolutely offer my hon. Friend that assurance, but I urge him to work with the local council to identify a priority bid for his area and assess that against deliverability, strategic fit and value for money to ensure he is supporting the bid in his area that is most likely to succeed.

[Mr Toby Perkins (Chesterfield) (Lab) [V]]

The cat is out of the bag. I am amazed that the Minister is being quite as brazen as he is. A moment ago, my hon. Friend the Member for Sheffield South East (Mr Betts) asked the Minister how we will know whether levelling up has been a success. The Minister’s response—I am paraphrasing—was, “Well, we’ll see if the Conservative Government get re-elected.” It is absolutely shameless. There is no attempt to pretend that this is a genuine process that has been properly worked through. It is purely about getting re-elected.

We in Chesterfield were recently successful in the town deals fund and I know how important it is for councils to put in quality bids for support. Can the Minister assure us that anyone who wants to make a bid will get support from consultants to ensure that they can get a bid in front of the Minister?

[Eddie Hughes]

Who ultimately decides whether we continue to sit here? I thought we were beholden to the public. I thought it was our job to serve them. The hon. Gentleman seems a bit confused as to whose job it is to serve who. I am very clear, and this Conservative Government are very clear, that it is our job to serve the British public and we are doing that. They will determine whether our decisions and priorities for funding or policy development have been a success, and they will determine who forms the next Government on that basis.

Rough Sleeping

Toby Perkins Excerpts

Thursday 25th February 2021 Commons Chamber

[Robert Jenrick]

I would be delighted to extend my praise to John Conway and his officers at the council. The statistics that my hon. Friend has just read out are a real tribute to the hard work that they have put in over the course of the year, in very difficult circumstances during the pandemic. To see Kettering Borough Council having a count of only one individual sleeping rough is an enormous tribute to what they have achieved.

[Mr Toby Perkins (Chesterfield) (Lab) [V]]

The Secretary of State was right to praise councils for their role. Here in Chesterfield, we have seen a big reduction in the amount of rough sleeping during the pandemic as the council has utilised the money provided by Government well. I agree with many of the issues that he raised about the causes of rough sleeping and homelessness, but I was alarmed that the role of welfare policy was missing from that list. I am concerned that in Chesterfield many of the rough sleepers I have spoken to tell me that, while they are aware that council flats are available for them, the amount of benefit they receive means that the rent would be unaffordable and they would end up being evicted again. I fear that once the eviction ban ends, we will see a big increase in the number of rough sleepers again. Can the Secretary of State say a little bit about the role of welfare policy and whether, by looking at issues such as the bedroom tax and the levels of rent being paid, we can take steps to ensure that this welcome progress is not lost when the eviction ban is ended?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. We must have brief questions if I am to get everybody in, because we have two big debates and a Select Committee statement after this. So, brief questions and fairly succinct answers please.

Coronavirus: Supporting Businesses and Individuals

Toby Perkins Excerpts

Tuesday 23rd February 2021 Commons Chamber

[Mr Toby Perkins (Chesterfield) (Lab) [V]]

Thank you very much, Madam Deputy Speaker. You will be pleased to see that I have all my clothes on.

This is an important debate as we head towards the Budget. As somebody who was formerly self-employed, I think it is incredibly important to recognise not only the importance of the self-employment scheme, but all the people who have been excluded from it. We need to recognise that people do not go into self-employment expecting to rely on the Government for help; they do it because they are willing to focus on their own abilities and to bring about the best outcomes for themselves. When self-employed people are left having to rely on Government, it comes very unnaturally to them.

We should remember that the majority of self-employed people were asked by the Government back in March to stay at home and not to go to work. They were told that there would be a self-employment scheme to support them. It has become transparently clear that so many of them have been missed out, while, simultaneously, other people who have continued to work have still been able to claim via the scheme. Just this week, I spoke to a constituent who has been excluded because, over the course of the three years, he has had periods when he has been employed; and he took a pension when he first became self-employed, to get him through. As a result he is unable to demonstrate, according to the Chancellor’s very arbitrary 50% of income rules, that he is self-employed. He has had almost 11 months during the vast majority of which he has been unable to work and unable to be supported by the scheme. At the same time, he has been working on building sites for people who have worked all the way through—have hardly missed a day—and have said, “This is wonderful: the Government are giving me money, even though I am carrying on.” We have schemes that have not worked as they should.

Directors of small businesses who have paid themselves through dividends have been excluded, and I am afraid that throughout the life of the scheme, too many people have been missed out. That was understandable back in March, as the scheme was being put together in a rush, but there really has been enough time to sort this out now, and the Government should get to getting it sorted out.

[Madam Deputy Speaker (Dame Eleanor Laing)]

We are now going back to Stoke-on-Trent, where I observe that the hon. Member for Stoke-on-Trent North (Jonathan Gullis) is now properly dressed. Lest anyone should be confused, when people are participating virtually they are appearing in this Chamber, the Chamber of the House of Commons, and therefore it is absolutely imperative that everybody taking part in these debates should be dressed in the way that they would be in the House of Commons.

Westferry Printworks Development

Toby Perkins Excerpts

Wednesday 24th June 2020 Commons Chamber

[Steve Reed]

The issue in question is not that the Secretary of State called the planning decision in; it is what he did after he had called it in—[Interruption.] The Secretary of State will have a chance to respond. It is what happened when he took the determination, not the fact that he was taking it.

[Mr Toby Perkins (Chesterfield) (Lab)]

I understand that the Secretary of State has acknowledged the appearance of bias. My hon. Friend is making a compelling case. If, in fact, the Secretary of State is entirely innocent of everything that has been suggested, there is a simple way for this to be resolved, which is for him to provide complete transparency. If only he showed the documents, he could prove his own innocence, and we could all get on to other matters.

[Steve Reed]

I could not agree more with my hon. Friend. There is, of course, a very simple way for the Secretary of State to show that he did absolutely nothing wrong—it really could not be more straightforward. Officials in his Department will have kept meticulous records of the entire process: how and when he notified them about his dinner with Mr Desmond, and whether he told them that he had viewed the video; whether they advised him to recuse himself, and whether he overruled them; why he needed to take the decision in a way that helped Mr Desmond cut his tax bill; and what advice he received about the viability of the scheme with a higher level of affordable housing. It is all there. If he has nothing to hide, he has nothing to fear. He can just publish it, and I urge him to do that.

--- Later in debate ---

[Robert Jenrick]

I will give way in a moment to the hon. Gentleman, but he could let me even begin my remarks, if he is truly interested in what I have to say. I will write to the Chair of the Select Committee outlining the timeline of events and the rationale for my decision making pertaining to the Westferry Printworks planning decision. Alongside this letter, and after a comprehensive review of what documents might be in scope of this motion and of the letter he sent me on behalf of his Select Committee, I will be releasing, later today, all relevant information relating to this planning matter, using the Freedom of Information Act as a benchmark. I recognise that there are higher standards of transparency expected in the quasi-judicial planning process, which is why I will also release discussions and correspondence that the Government would not normally release.

These documents show that, contrary to the wild accusations and baseless innuendo propagated by the hon. Member for Croydon North (Steve Reed) and restated today in a series of totally inaccurate statements and comments, this decision was taken with an open mind, on the merits of the case, after a thorough decision-making process. It was rooted in my long-standing and well documented view that we have a generational challenge as a country, which we need to meet and not shirk, to build more houses in all parts of this country and that whoever holds this office, whether it is me, another Member from my party or the hon. Gentleman, must make those tough decisions in order to build the homes that this country needs and to build a better future for the next generation.

[Mr Perkins]

The Secretary of State says that he is pleased to have this debate and started his speech by saying that he is going to release all of these documents. Why is he doing that today? He is releasing them because he has been forced to come here by my hon. Friend the Member for Croydon North. If the Secretary of State wanted some transparency, instead of having to have this dragged out of him, he would have done this weeks ago.

[Robert Jenrick]

The hon Gentleman is completely incorrect in that respect. First, a lot of documents are already in the public domain, and I will come on to discuss that. The reasons for my decision are set out clearly in the decision letter. From the comments that we have heard from the hon. Member for Croydon North, I suspect he has not taken the trouble to read it. The inspector’s report is already in the public domain, with the representations made by the parties. Since my receipt of the letter from the Chair of the Select Committee, we have undertaken the process I have just described, which, as Members can imagine, is not one that one does in a day or two. It has taken us time. As Members will see when I publish the documents later today, and in the letter I have written to the Chair of the Select Committee, we have taken that process very seriously, because transparency matters, openness matters and settling this matter matters, because I certainly do not want to be the subject of the innuendo and false accusations that the Opposition are choosing to peddle.

Oral Answers to Questions

Toby Perkins Excerpts

Monday 24th February 2020 Commons Chamber

[Robert Jenrick]

I would be very happy to hear more about the specific cases that the hon. Lady raises. We have a strategy; we are investing more than ever before—we spent 30% more than we did in the previous financial year—and the initiatives that we are funding are working. I am pleased to say that we are seeing the first falls in rough sleeping for many years, but we are not complacent. We believe that this is an important challenge and it is one that the Prime Minister and I are committed to. We hope that when the statistics for the November count are published on Thursday, we will see a further fall and a further move in the right direction on this issue.

[Mr Toby Perkins (Chesterfield) (Lab)]

In Chesterfield, we have one-bedroom flats available, yet we also have people sleeping rough on the streets. The reason is that the benefits they receive do not cover the rent that they would have to pay for a one-bedroom council flat, so they are unable to take them up. I agree entirely with what the Secretary of State says about the value of hostels, but we could do away with the need for a lot of those if we had a welfare policy that supported people to live in the houses that already exist.

[Robert Jenrick]

The hon. Gentleman is right that this is a multifaceted issue. We have ended the freeze on the local housing allowance, so that will rise in the next financial year with the consumer prices index. That will help to make it more affordable for individuals on the lowest incomes to get into homes in the private rented sector, but we will bring together all parts of Government with renewed vigour—whether that is the Department for Work and Pensions, the Home Office or the Department of Health and Social Care—to ensure that we tackle this issue as never before.

Homelessness

Toby Perkins Excerpts

Wednesday 29th January 2020 Commons Chamber

[John Healey (Wentworth and Dearne) (Lab)]

I beg to move,

That this House notes with concern that the number of people sleeping rough on the streets of England has more than doubled since 2010 and that the number of homeless children in temporary accommodation has risen to 127,000; further notes that the number of people dying homeless in England and Wales has risen to 726 people a year; recognises that by contrast there was an unprecedented fall in homelessness under a Labour Government by 2010; and calls on the Government to take action to end rough sleeping and tackle the root causes of rising homelessness starting by making 8,000 homes available for those with a history of rough sleeping, restoring funding for local housing allowance, and re-investing in local homelessness services, including £100m a year for emergency accommodation to save lives this winter.

This is our first Opposition day of the new Parliament, and it is fitting that we are debating the country’s homelessness crisis. It is fitting, too, that so many Members from all parties and all parts of the country want to speak. The measure of any country is the way it treats its most vulnerable citizens. We are proud of Britain, but it shames us all that tonight people will be sleeping rough on the streets in almost every town and city. Any patriot knows that the social contract at the heart of our country means that we can never accept people wanting for something as basic as a permanent roof over their head.

Last year, 726 people died homeless in a country as decent and well-off as ours; in Britain in the 21st century. That does indeed shame us all, but most of all it shames Conservative Ministers over the past 10 years. This is a Government who are failing on homelessness. This is a Government in denial about the root causes of homelessness. This is a Government with no proper plan to fix the crisis that they themselves have caused.

[Mr Toby Perkins (Chesterfield) (Lab)]

I thank my right hon. Friend for bringing this incredibly important debate to the House and for referring to the number of people who died while homeless. David Fuller died sleeping rough in Chesterfield at Christmas in 2017. Is it not the case that every single death of that sort is not only a tragedy but a travesty, and an avoidable travesty if only the Government would take the actions they need to take in building the number of houses we need and having a welfare policy that does not punish the most vulnerable people in our country?

[John Healey]

My hon. Friend is right. I believe that Members on both sides of the House will tell this afternoon of some of the local and individual tragedies behind the national statistics. He is quite right that every one is a tragedy and every one is a travesty. Many are preventable. It cannot be acceptable for any of us in this House, in this day and age, that over 700 people died homeless in our country.

--- Later in debate ---

[The Secretary of State for Housing, Communities and Local Government (Robert Jenrick)]

I beg to move an amendment, line 1, to leave out from “House” to end and add:

“notes the Government’s commitment to ending rough-sleeping in this Parliament; further notes that the latest annual figures showed a fall in rough sleeping numbers; notes the steps already taken by the Government including implementing the Homelessness Reduction Act 2017 and delivering successful programmes like the Rough Sleeping Initiative and Housing First pilots; welcomes the Government’s commitment of £1.2 billion to tackle homelessness and rough sleeping; notes the Secretary of State’s announcement this week of an extra £112 million for the Government’s Rough Sleeping Initiative, taking the total sum being invested over the next year to £437 million; notes this House’s concern that more is done to tackle homelessness and rough sleeping so that everyone has access to accommodation when they need it most; and notes the clear steps this Government is taking to achieve this.”

We are fortunate to live in a country that is widely and rightly regarded as one of the most fair, prosperous and advanced in the world. It is, therefore, a serious moral failure that we still have people sleeping on our streets and struggling to secure something so basic as a roof over their heads. That feels especially poignant at this time of year, when most of us take for granted a warm bed on a cold night. The deaths of people sleeping rough right here on the doorsteps of Parliament in recent years have been a sobering reminder of the challenges we face. That was brought home to me powerfully when I volunteered at a homeless shelter in Birmingham on Christmas day, and when I had the privilege of meeting a lady called Claire in Walsall just before Christmas, who is one of over 200 people to have been helped off the streets by the Housing First pilots. Initiatives such as Housing First give us all some hope.

[Mr Perkins]

Will the Secretary of State give way?

[Robert Jenrick]

I will come to the hon. Gentleman in a moment.

The figures showing that rough sleeping fell last year, for the first time in several years, give us evidence that these policies are working, but there is clearly a lot more to be done. Everything begins with a stable home and somewhere to put down roots, which is why the Government have made it their overriding priority to reduce all forms of homelessness and to end rough sleeping during this Parliament.

[Mr Perkins]

I am grateful to the right hon. Gentleman for giving way. I appreciate the tone of his rhetoric, but it bears no relation to the performance of the Government’s policies over the past nine and a half years. He talks about homelessness as though it remained a problem, but it is an escalating problem. It is a problem that is running out of control on this Government’s watch. When he comes back to the Dispatch Box, will he not talk about homelessness as though what we are seeing is a continuation of a longstanding problem? What we are seeing under his Government is as a result of his policies. The situation is getting—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Let us make this clear from the start: we cannot have long interventions. If Members make long interventions at the beginning of the debate, those sitting here hoping to speak at the end will get only two minutes, and that is really not fair. We must have short interventions.

--- Later in debate ---

[Mr Toby Perkins (Chesterfield) (Lab)]

I am glad that my right hon. and hon. Friends tabled this motion, because I believe that homelessness is one of the most significant issues facing our country. I do not doubt the Secretary of State’s sincerity. He addressed many of the relevant issues, and I think we began to sense that the Government’s position was moving towards a recognition that this is not purely a question of housing, but a much broader question. However, I think we need to go much further, and recognise the extent and significance of the impact of welfare policy on the level of homelessness. While I welcomed the Secretary of State’s tone to some degree, the test will be whether the means of putting a stop to this catastrophe are willed as well as the end, and whether the Government can ultimately accept the reasons for the current level of homelessness.

My right hon. Friend the Member for Wentworth and Dearne (John Healey) was right to refer to the amazing reduction in homelessness that occurred under a Labour Government. A couple of people have said that the issue should not be politicised, but I am afraid that it is a political issue. Housing supply is a political question, as are welfare policy and the often catastrophic impact that sanctions have had on people, the reduction in the number of hostels for the homeless, the reduction in local government funding, and the fact that people who are incredibly vulnerable feel that they are not being supported. In fact, it often seems to be the Government’s policy to be tough on benefits because they think that there are votes in that toughness, which, ultimately, has led to the homelessness that we are now seeing.

Homelessness used to be a city issue. Back in the days of the last Tory Government, we were used to the appalling level of homelessness in London, but we did not have it in Chesterfield. We do now, and that is why there is such a drive throughout our communities to get something done about it.

I hope that the Minister who responds to the debate will answer our questions about the Government’s housing policy. It is dreadfully disappointing that only 6,000 new social homes were built last year, a reduction from 40,000 in the year in which Labour lost power. I also hope it will be recognised that this is a health issue, an alcohol and drug support issue, and a welfare policy issue. If the Government adopt a collective approach, they will certainly have my support for their efforts to tackle the problem.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I begin by congratulating my hon. Friends the Members for Erith and Thamesmead (Abena Oppong-Asare) and for Birkenhead (Mick Whitley) on their excellent maiden speeches. I was particularly pleased to hear from my hon. Friend the Member for Birkenhead, who in his previous life did an awful lot to help working people in my constituency and throughout the north-west. If he shows the same passion and determination to fight for justice here, he will serve his constituents proudly.

During the four years I have been here, I have noticed—as I am sure other Members have—a significant increase in the number of people sleeping in doorways on my walk into work. This morning, as on most mornings, there was clear evidence in many of the streets that people had been sleeping there the night before, and this morning, as on most mornings recently, there were people sheltering in the subways outside this place. I feel ashamed that people are sleeping rough outside the corridors of power in one of the richest countries in the world. We must do better. We also know that rough sleeping is only the most visible form of homelessness, and that there are many people whose homelessness is less visible.

[Mr Perkins]

My hon. Friend is right to speak of the sense of shame that I think we all feel when we see people sleeping outside Westminster tube station, but they are not just sleeping there. Someone actually died outside Westminster tube station. How much should that shame all of us?

[Justin Madders]

It is a complete shame. I am going to talk about the number of deaths in a minute or two.

I want to say a bit more about the invisible homelessness: those living in temporary accommodation or relying on families and friends and sleeping on sofas. Many, including in my local authority, are in temporary accommodation far away from their families, their work or their school. Children are sometimes missing out on their education because they cannot get to school from where they have been placed. That accommodation is better than nothing, but this shows just how much pressure there is on the system.

It has not always been this way. In 2010, the end of rough sleeping appeared to be in sight. It is not inevitable; it can be prevented. Indeed, the Government seem to accept that rough sleeping can be prevented by setting a target to eradicate it by 2027, but even one night out in the cold is one too many, and seven years is a very long time for those currently experiencing homelessness. The Government have said that that is also the year by which this country will have full 5G coverage. I know which one I would like to see delivered sooner.

As my hon. Friend the Member for Chesterfield (Mr Perkins) said, the number of people who have died while sleeping rough or in emergency accommodation is a terrible, damning statistic. It is up by 51% in the last five years, rising to 726 people in 2018. That is the equivalent of two people dying almost every night. That is more homeless people dead in one year than there would be Members in this Chamber if it were full. Yet, according to the Government, ending rough sleeping is as much of a priority as dealing with 5G. These are real men and women, who are on average younger than me. Their deaths are premature and entirely preventable, and it is a stain on this country that we do not do more to stop this happening every night of the year.

If the Government are to reach their target of halving rough sleeping by 2022 and ending it by 2027, they must address the key drivers behind homelessness, including spiralling housing costs, lack of social housing, insecurity for private renters and cuts to homelessness services—all the things we have touched on in the debate. Let us not forget that we have had a net loss of 60,000 social homes through sales and demolitions in the last few years, despite the totally hollow pledge from David Cameron for the one-for-one replacement of houses lost through the right to buy. That has been one of the failures of this Government, and it has to change.

Shelter tells us that the leading cause of homelessness is the loss of a private rented home, and I have concerns about the way that people in that situation are not given much help. They are given no special priority and they have to wait until an eviction order is granted by the court, which puts more costs, pressure and stress on them. We also know that those extra costs make it even harder for them to get a new home of their own. We absolutely need to do more, and I am glad we have debated this subject today.

--- Later in debate ---

[Luke Hall]

I will not at the moment, but I will come back to some of the issues that have been raised in the debate.

A number of colleagues, including the hon. Member for Chesterfield (Mr Perkins), raised concerns about welfare and the local housing allowance. We have of course delivered on our commitment to end the benefit freeze, and the majority of people in receipt of housing support will see their support increase as a result.

[Mr Perkins]

Will the Minister give way?

[Luke Hall]

In a second.

We have also committed an additional £40 million in discretionary housing payments for 2021 to help those facing affordability challenges in the private sector. We understand the importance of this issue in tackling and meeting our ambitious target to end rough sleeping by the end of this Parliament, but we are always happy to come back to this matter.

We have talked a lot about substance misuse. My hon. Friend the Member for Gravesham (Adam Holloway) put on record his experience in this matter and talked about the importance of substance misuse needs. My hon. Friend the Member for Watford (Dean Russell) spoke eloquently about his experience of cuckooing. We know that many rough sleepers have substance misuse needs and can struggle to access the support they need to tackle substance dependency. Indeed, data collected in 2018-19 identified that the second most prevalent reported support need among people seen rough sleeping in London related to alcohol, at 42%, while 41% of rough sleepers were assessed as having a support need related to drugs. Through our rough sleeping strategy, we have made a number of commitments to address this issue, including new training for frontline workers to help them to support rough sleepers under the influence of new psychoactive substances such as Spice. We are also working with the Home Office on the development of the cross-Government job strategy, as well as working closely with Dame Carol Black’s team to provide evidence and data to support the forthcoming independent review of drugs policy.

Local Government and Social Care Funding

Toby Perkins Excerpts

Wednesday 24th April 2019 Commons Chamber

[Toby Perkins (Chesterfield) (Lab)]

Let me make a point that neatly sums up what my hon. Friend is talking about. In Chesterfield, we have had a reduction of 43.2%. I took the time to look at the reduction in the Minister’s constituency and it is only 12%. That is not a difference of just a couple of per cent. It is three and a half times more in my constituency.

[Andrew Gwynne]

As my hon. Friend will hear as I develop my argument, that is not just a one-off. It is happening across England and it is unfair. The Tories do not get that blatant unfairness, because they have not seen the same levels of cuts in many of their areas that we have seen, yet the impact that has had on the communities we represent cannot be expressed loudly enough.

--- Later in debate ---

[James Brokenshire]

I am working closely with the Secretary of State for Education as we look towards the next spending review. I will come on to the support that is being provided for adults’ and children’s social care, as well as how we are investing further on a number of other fronts. Therefore, we have recognised and reflected on a number of the pressures that we have seen. Clearly, in the further review of relative needs and resources, and as we look towards the next spending review, I will look at the data and the evidence very closely and carefully.

[Toby Perkins]

Will the Secretary of State give way?

[James Brokenshire]

I will give way one last time and then I will make some progress.

[Toby Perkins]

I am grateful. One thing that has been missing from the debate so far in terms of social care is that the vast majority of domestic visits are carried out by employees of private sector companies, as opposed to employees of local authorities, because most of these services have been outsourced. Huge numbers of those companies are going bust. It surely shows the Secretary of State that the system is unsustainable when 100 care homes have gone bust in the last couple of years.

[James Brokenshire]

The Minister for Care, who is sitting on the Bench next to me, says that the number of providers is going up. I can assure the hon. Gentleman about the steps that we are taking in conjunction with the Department of Health and Social Care; the assurances; the quality work that colleagues across Government support and strengthen; and the arrangements that we put in place to step in when there are failures in the market and a failure of supply in relation to a particular provider. When we look at a number of these examples, we can see the work that has gone in to make sure that they are dealt with effectively.

It is about the quality of service. When we look at the broader issues of social care, which many Members across the House have rightly touched on, the focus is on the delivery of care and the delivery of outcomes. Simply spending money is not the answer in terms of delivering the high-quality care and the outcomes that some of the most vulnerable in our society need.

--- Later in debate ---

[James Brokenshire]

The hon. Lady must equally reflect on the fact that the Labour Opposition voted against a real-terms increase in the core spending available to local authorities this year. That included the additional funding for health and for adult and children’s social care. We recognised the pressures and made the right judgments in respect of the pressures that councils explained to us. The Opposition may wax lyrical about funding pressures, but their own councils are not even helping themselves.

The Opposition have some front to claim to be the champions of local government and localism. I took the time to read the shadow Secretary of State’s recent speech to Labour’s local government conference this year, and it contained some big and bold claims. It is just a shame that they were not backed up by reality. He said that Labour was the party of devolution. I must congratulate him on his selective memory. If I remember correctly, it was his party that, after 13 years, left the UK one of the most centralised countries in Europe. It took the Conservatives in government to roll back the era of centrally imposed targets and the tick-box culture imposed by the Labour party, and it is this Government who have put the public finances back on track and cleared up the mess we inherited from Labour.

[Toby Perkins]

I am sure the Secretary of State would not want people watching this debate to be misled by what he has just said about police funding. He knows as well as all of us that the reason Labour voted against the spending plans for the police was that we were proposing far greater spending on the police. That is why Labour Members voted against what we saw as his derisory offer to our desperately under-resourced police services.

[James Brokenshire]

We have given significant investment to the police. Indeed, the Chancellor has made further commitments on some of the most acute pressures that we know are being experienced. I was actually talking about the local government settlement, rather than the police settlement, which was dealt with separately. However, we made a commitment to providing additional resources, and we are backing the police to deal with the issues of crime.

--- Later in debate ---

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

I wish to focus my contribution on the impact of local government cuts on tackling youth violence. We know that early intervention and prevention is key as is a public health approach, and I will come back to those points later on in my contribution.

[Toby Perkins]

On a point of order, Madam Deputy Speaker. I apologise for interrupting my hon. Friend, but I note that there is not a single Member of Parliament on the Government Benches. I just wondered whether the fire alarm had gone off and none of us on the Labour Benches had heard it.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I thank the hon. Gentleman for his point of order. Of course he knows that the occupation of the Benches is not a matter for the Chair. [Interruption.] Indeed, the hon. Member for Henley (John Howell), who is temporarily not in his place, is making it clear that he is in the Chamber. So, too, is the Minister, the Whip, the hon. Member for Dumfries and Galloway (Mr Jack), and the Financial Secretary to the Treasury. None the less, I take the hon. Gentleman’s point. I say to him and to the Chamber that I have been a little more lenient than normal this afternoon about people—on both sides of the Chamber—coming in and out of the Chamber and being absent for rather longer than I would normally find acceptable. This is a particularly busy week. There are many delegated legislation Committees and Select Committees sitting because the House did not sit on Easter Monday, so I have been a little more lenient than normal. That is one reason why there are fewer people in the Chamber than there might otherwise have been, but no one would like to give the impression to anybody watching that this has been anything other than a well-attended debate, with people making serious speeches. Every single speech that I have heard has been made by Members of this place who take their duties in their constituencies very seriously.

--- Later in debate ---

[Norman Lamb (North Norfolk) (LD)]

I will address most of my remarks to the issue of social care and the challenge we face, but first I want to highlight a real concern that other hon. Members have also expressed. The funding constraints on local government have had a very big impact on preventive services that are designed to stop extra costs being incurred at a later stage through a failure of the system.

I will give one or two examples. The Select Committee on Science and Technology recently conducted an inquiry into the impact of adversity in childhood, looking in particular at trauma, abuse or neglect in early years. We know that if we intervene early and follow the evidence of what is effective in stopping trauma becoming entrenched, we can not only transform lives but save a fortune further down the track.

The hon. Member for Sleaford and North Hykeham (Dr Johnson) said something about the Conservative party being the custodians of careful finance, but we are seeing significant reductions in investment in preventive services, which end up costing the state a fortune further down the line. Too often, children who experience trauma, abuse or neglect in early years and who do not get the support they need end up being excluded from school, and the track through to the criminal justice system is all too real. Educational attainment is, therefore, often lower than it should be, and worklessness often follows. The disinvestment over the past few years in those preventive early years services, supporting parents and so on, has been a very stupid thing to do, because it will cost the state far more in years to come.

When the Chancellor launched the Budget a few weeks ago, it was encouraging to hear him say that he was willing to invest in early intervention where there was evidence of its effectiveness. Well, there is evidence of its effectiveness, so the Chancellor needs to make that investment.

[Toby Perkins]

I have huge respect for the right hon. Gentleman’s knowledge in this area, but he is talking about overall local government spending cuts and he was, of course, a part of the first five years of this Government. The greatest austerity and local government cuts were made under a Liberal Democrat and Tory coalition, so does he regret his part in the huge cuts made to local government between 2010 and 2015?

[Norman Lamb]

If we are honest, every Government have some responsibility. The reductions started before 2010. I absolutely accept—[Interruption.] Let me address this point; I am trying to be straight with the hon. Gentleman. I think mistakes were made by the coalition Government in terms of the hit local government took during that period. The contrast between the support for the NHS by increasing investment in real terms and the cut to social care does not make sense, but that is what happened. I recognise that. It was above my pay grade, but I do not think it was the right decision to make. I hope that that is of some help to the hon. Gentleman.

--- Later in debate ---

[Toby Perkins (Chesterfield) (Lab)]

It is a great pleasure to follow the right hon. Member for North Norfolk (Norman Lamb), who, as we all know, has great knowledge in this area. I am pleased he acknowledged in response to my intervention that the Government the Liberal Democrats were part of got the balance wrong in local government funding. I am very conscious of that fact, having spent a lot of time talking about local government elections in the last week or so back in Chesterfield, where it is hard to find a Liberal Democrat who will own up to the Government their party was a part of. They seem to have disowned their record entirely.

My hon. Friend the Member for Sheffield South East (Mr Betts) made the point that in this time of austerity the worst hit area of government has been local government. It has been utter cowardice for the Government to say, “There are going to be huge cuts, but we’re not going to decide where they’ll fall, because we’re going to pass on that decision to local authority leaders. It will be for them to decide whether to shut a library, close a park or stop investing in roads. We’re going to outsource the pain”. I think of the many people who first became councillors after the 2015 elections, or even the 2013 elections. They were so excited to be councillors, but at their very first council meeting they were faced with the decision of what to shut. That has been the reality for many local authorities.

It is absolutely right that the motion tabled by my hon. Friends should focus on that unfairness. I have referred previously to the fact that Chesterfield has had a 43.2% cut, whereas the Secretary of State’s local authority has had a cut of just 12%. The right hon. Member for Ludlow (Mr Dunne) spoke up for that, saying the problem with the Labour Government was that they sent all the money to the poor areas. I am proud that a Labour Government made those decisions and recognised the role that local authorities can play in supporting the most deprived in our society.

As I said, I have been in Chesterfield talking about the local elections. I am proud of the record of the local authority in Chesterfield. It has recognised that in a time of austerity and unfair cuts from central Government it has had to make innovative choices to enable us to provide better services that cost less. It invested in a new leisure centre and found that the amount by which it had to subsidise it fell from £1.5 million—the figure in every year under the Liberal Democrats—to only £300,000 a year, as more people were using it because it had better facilities. Similarly, the council invested in our cultural facilities, meaning the theatre and concert venue saw a 60% reduction in the amount by which it had to be subsidised, since it was getting more punters through the door because it had better facilities.

We have fewer empty shop units than most other local authority areas of a similar sort. The council has done very innovative things, such as bringing a big wheel into the centre of Chesterfield, which massively increased the number of people visiting the town centre, and it has an innovative record on tackling homelessness. There was an excellent remembrance display to commemorate the 100th anniversary of the 1914-18 conflict, featuring poppy cascades not just from the town hall but from a variety of retail units. The council has recognised that it is sometimes necessary for local authorities to invest in order to save money and to be innovative if people are to be proud of them, but at the same time it has managed to maintain the lowest level of council tax in Derbyshire.

We know that Labour councils cost you less. The average cost per household in Labour council areas is £351 less than the average in Tory areas. The authorities that have been most likely to go bust are Tory authorities in, for instance, Northamptonshire and Surrey. Not only does Labour run its councils better than the Tories, but its councils cost less and innovate more. I am very proud of the record that I will be going out to defend.

I want to say something about social care, because I know a great deal about it. I spent a very tough year of my career as care manager of a private provider of domiciliary care for Sheffield City Council. One aspect of social care that is missing from the whole debate is the fact that it is set up as an industry rather than a service. The vast majority of domestic care providers are private sector businesses, and the vast majority of care homes are run by the private sector. The No. 1 priority of the private sector is to make a profit, and we should not be surprised that if we involve private sector companies in care homes, they will try to make a profit out of them. That, ultimately, is what companies exist for.

Councils often involve the private sector because they are trying to save money, and they recognise that the terms and conditions on which local authority staff will work will be more generous than those in the private sector. That is one of the knock-on consequences of the overall spending pressure on councils. The relationship between councils and their providers is very important. Far too often, councils outsource responsibility for these services, signing up to contracts that anyone who studies them must know are unsustainable. They must have some responsibility for the decisions that they make.

As one who has worked with carers, I take my hat off to those who work in the care industry. I know that they are among the most dedicated and professional of people, often working in incredibly difficult circumstances for an absolute pittance. I know that whether they wear a uniform with a local authority badge on it or work for a private company, they have a real commitment to the people for whom they provide care. However, we are seeing an industry in crisis. More than 100 care homes have gone bust in the last two years or so, and dozens of domestic care providers are going bust as well. In 2018 Allied Healthcare, the company for which I used to work, was days away from bankruptcy. Every time a care home goes bust, the onus falls on the local authority again.

The Government need to understand that given the scale of cuts that we have seen over the last nine years, with a single year’s uplift and the ring-fencing of the small amount of £2.5 billion—it is not actually a small amount, but it is inadequate in comparison with the cuts of previous years—they cannot, as the Minister did earlier, wash their hands of the fact that the industry is in crisis and businesses are going bust. That means 15-minute appointments. It means dementia patients seeing a different carer every day, although consistency of care is so important. It means a decline in the service that they receive. It means families seeing that their relatives are deeply troubled by the inconsistency of the services that they are receiving. It means local authorities saying that they will not pay for travelling time, and that responsibility falling back on to the companies.

The courts have recently decided that those who provide sleepovers should be paid the national minimum wage. Many care companies did not previously pay it. I support that decision, but the corollary must be the Government’s recognition that while local authorities were previously tendering on the basis that those who slept on the job could be paid on a different basis, it has now been retrospectively decided that authorities must pay private providers. Money must now come from central Government to fund that, because businesses will continue to go bust and the services on which people rely will continue to be diminished.

All the cuts to care have consequences. When care services are not available, people turn up in A&E. Some 20% of the people in A&E should be in a hospital bed but cannot get admitted. At the same time, 20% of hospital beds are filled by people who cannot get out because there is no care package waiting for them. My hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) spoke about the impact of cuts to children’s social care falling on children with special needs and on schools. Things like the failure to diagnose autism have a knock-on impact right across the school and other areas. All these services are connected; we cannot look at social care and local government finances in isolation.

I met the managing director of One to One, a company in my constituency that provides excellent care services to many local authorities, who told me about the knock-on consequences and the impact that local authority funding cuts are having on its ability to get paid. The company is often owed tens of thousands of pounds by local authorities that are struggling to manage their administration.

The industry is in crisis and local government is in crisis. The Government have two choices: they either step up to the mark and convince us that they are serious about the social care funding crisis, or they continue in the way they are going, in which case everyone will realise that this is something that lands at their door.

Draft Dorset (Structural Changes) (Modification Of The Local Government And Public Involvement In Health Act 2007) Regulations 2018 Draft Bournemouth, Dorset And Poole (Structural Changes) Order 2018

Toby Perkins Excerpts

Wednesday 16th May 2018 General Committees

[Rishi Sunak]

My hon. Friend is absolutely right. In fact, my hon. Friend the Member for Nuneaton told the House that the Government’s intention was for those criteria to be assessed in the round and across the whole area subject to a reorganisation, and not to be considered individually by each existing council area.

Following on from that, on 7 November 2017 the then Secretary of State told the House in a written statement that he was “minded to” implement the proposal made by the Dorset councils. A period of representation followed, until 8 January this year, during which we received 210 representations. On the basis of the proposal, the representations and all other relevant information available, the Government are satisfied that all the criteria are met. On 26 February 2018 the Secretary of State announced his decision to implement the proposal, subject to parliamentary approval, and on 29 March laid the draft statutory instruments.

We believe that the proposed governance changes for which we are seeking parliamentary approval will benefit people across the whole of Dorset, in every district and borough. Our aim as a Government is to enable the people of Dorset to have as good a deal as possible on their local services. That is not the view of the Government alone; it is shared by 79% of all councillors across the whole of Dorset, and by other public service providers and businesses, including in particular those responsible for the provision of healthcare, and the police, fire and rescue, and rail services across Christchurch and the wider Dorset area.

As has been mentioned, on 29 November a number of my right hon. and hon. Friends with constituencies in the area wrote to the then Secretary of State, my right hon. Friend the Member for Bromsgrove (Sajid Javid), urging him to support the proposal submitted by the Dorset councils as the option that commanded strong local support and that will do the job that needs to be done. They stated that

“the further savings required to be made, if our councils are to continue delivering quality public services, can only be done through a reorganisation of their structures”.

The representative household survey, commissioned by the nine Dorset councils, estimates that 65% of residents across the whole of Dorset support the proposal. Of the nine Dorset councils, eight support the proposed change and have formally consented to the necessary secondary legislation.

Regarding the one Dorset council that does not support the proposal—Christchurch Borough Council—a third of its elected councillors do support the proposal. Those councillors wrote to my right hon. Friend the then Secretary of State, stating:

“We are acutely aware of the constraints on local government funding and the financial pressure that upper tier services are facing. We therefore consider it our duty to respond to these challenges by supporting the restructuring of local government in Dorset.”

Finally, it might be helpful to say something about the statutory framework.

[Toby Perkins (Chesterfield) (Lab)]

We have heard from many local Members about their support for the proposal. I have a letter here from the leader of Christchurch Borough Council outlining its view that Bournemouth and Poole could go together but, because 84% of residents voted against it in a referendum, Christchurch should be allowed to stay independent. Could the Minister explain why he came to the conclusion that Christchurch should be forced into it when the people seem to be saying that they are against it?

[Rishi Sunak]

I thank the hon. Gentleman for that intervention. I think the poll he refers to was an open-ended one run by the borough of Christchurch, which accounts for only 6% of the population of the Dorset area. Secondly, it is not only Christchurch Borough Council that is responsible for the services provided to the residents of Christchurch. The county council provides about 80% of those services. Across the piece, in the representative household survey, which was designed to be statistically representative, there is strong support among more than 60% of Christchurch residents for this particular proposal.

--- Later in debate ---

[Toby Perkins]

If I have understood the hon. Gentleman correctly, he says that he is aware of what the policy of this council—which does not have any policies because it does not yet exist—will be on building on the green belt. I can only imagine that he says that because he knows what kind of people will stand for election for the Conservative party. If he suggested that people voted Labour at the next general election, there might be an Administration that was against building on the green belt, which might solve his problem.

[Sir Christopher Chope]

The hon. Gentleman talks about upcoming elections. I fear that if these proposals go ahead, it will be doomsday for a lot of Conservatives in Dorset. I see my hon. Friend the Member for Poole in his place. Poole Liberal Democrats and the Poole People party are dead against these proposals—they are as concerned about them as people from Christchurch. If this change is forced on the people of Christchurch, what hope will people standing in Christchurch as Conservative candidates have of getting elected?

Years ago, when the Conservative party brought in the right to buy, the Labour party lost its last representatives in Christchurch. The Christchurch Labour councillors at that time felt strongly that the right to buy was the correct policy and, because they did not like the way the Labour party opposed it, left the party. However, in so doing, they left a legacy of independents. They did not join the Conservative party; they became independents. If this shambles is allowed to develop in the way that the Government seem to want it to develop, it is likely that there will be a rise in independently minded people across the conurbation and a rise in support for the Labour party. To give the Labour party its due, it came a good second in Christchurch at the last general election. Okay, it was 25,000-plus votes behind me, but it nevertheless came a good second and made a big improvement on its previous performance.

[Toby Perkins]

Would it therefore be reasonable to say that it was a two-horse race?

[Sir Christopher Chope]

I will go along with that, yes. My hon. Friend the Member for Shipley, who is a betting man, knows exactly how to bet on two-horse races.

Let me return to the issue of consent. Neither my hon. Friend the Minister nor others drew the Committee’s attention to the 26th report of the House of Lords Secondary Legislation Scrutiny Committee, which was published in April. That Committee drew specific attention to these instruments—particularly the draft modification regulations, which we are discussing at the moment—and to the local advisory poll in December 2017,

“in which 84% (numbering 17,676 votes) of those taking part voted ‘no’ to the changes.”

It reports in its conclusions at paragraph 11:

“MHCLG has told us that Ministers have made clear that they will apply the criteria for local government restructuring ‘in the round’ for the area subject to reorganisation, rather than considering whether the criteria would be met in relation to each individual council area.”

It goes on:

“However, given the scale of opposition to the proposal expressed both by Christchurch BC and by its residents, we consider that these instruments give rise to issues of public policy likely to be of interest to the House.”

I hope that, in looking at this issue, hon. Members will indeed have regard to what that Committee said and to the appendix to its report.

That draws attention to the outcome of the poll. My hon. Friend the Minister said that some councillors from Christchurch had written to the Government saying that they rather fancied the idea of being councillors in a new unitary authority and thought it would be in the best interests of Christchurch residents that that should happen. When that was debated and voted on at the Christchurch Borough Council meeting in January, not a single councillor raised his hand to vote against what was proposed—in contrast to what happened a year previously. The reason was that they knew that if they did so, the electors in their wards would have been completely at a loss to understand how they could be insulted by their elected members.

Remember that at the borough council elections in Christchurch in 2015 there was no talk whatsoever of any structural change. Indeed, at that time there were plaudits all round for the savings, extending to several million pounds each year, being achieved as a result of Christchurch and East Dorset working together in partnership with one chief executive, one set of chief officers and one headquarters premises. As a consequence of what is proposed today, that partnership will be broken, with all the dis-economies of scale that will flow from that. That joint working will be undermined, and one part of the partnership will be set against the other. The Government have not faced up to that, which is another reason to be concerned about the proposals.

I would also bring the Committee’s attention to this point, which the Minister anticipated I would make. The background is that, under section 2 of the 2007 Act, the Government have the power to invite proposals for local government reorganisation from two tier to single tier. That is indeed what the Government recently did in Northamptonshire. The 2007 Act also gave the then Government the power to insist that proposals be brought forward, but that power was time-limited and has expired.

There was no power in that Act for councils to make their own proposals to the Government where there was not consent. That is where the regulations are problematic, because they say that the 2007 Act shall be changed retrospectively to operate in a way that allows councils to put submissions to the Secretary of State without their having invited such submissions. As the Minister said, the regulations being used to try to achieve that require the consent of at least one councillor in a particular category.

However, during the passage of the 2016 Act in December 2015, the Government said they would give a guarantee that powers to override the democratically expressed will of an individual council would not be used for that purpose. The background to that was a Back-Bench amendment to the Bill that was considered on Report, which is now reflected in section 15(5) to (8). I and my hon. Friend the Member for Gainsborough (Sir Edward Leigh), along with one or two others, expressed concern during the debate on that amendment that, if literally interpreted, the power it created could be used against a council against its will. I sought various undertakings in that debate, but the junior Minister was tied to his brief and unable to satisfy either me or my hon. Friend the Member for Gainsborough that the powers would not be used in the adverse way that we feared.

Then—this is relevant, because it is how this came about—my hon. Friend and I spoke to the then Secretary of State during another Division on Report and said that if he did not give a stronger undertaking on Third Reading, we would divide the House. The Secretary of State told us that he would give us the undertaking that we sought. It was on that basis that I asked the Secretary of State this specific question on Third Reading:

“Will my right hon. Friend give the House an assurance that amendment 56”—

the one that changed what is now section 15(5) to (8)—

“will not be used by the Government to force change on any local authority?”

The Secretary of State replied:

“I will indeed.”—[Official Report, 7 December 2015; Vol. 603, c. 822.]

My hon. Friend the Member for Gainsborough then pressed the point, citing his fear that the power would be used to impose changes in Lincolnshire that he and his people did not want. The Secretary of State went further and said that the powers were designed to bring councils together into discussion and not to impose the will of the Government on one council, as compared with another, against its consent.

I have since spoken to our former colleague, the junior Minister at the time, who told me of his horror when he heard what the Secretary of State said in response to the questions that I and my hon. Friend the Member for Gainsborough put to him on Third Reading. Our erstwhile hon. Friend, who sadly was defeated at the general election, took the view that what was being said was thoroughly misleading—that is what he says. What we have is a situation where I and my hon. Friend, and the House, were misled by the Government—I am not saying deliberately—and made to believe that the Government would not introduce changes against the will of elected councillors.