Local Government Funding

Tulip Siddiq Excerpts

Wednesday 3rd February 2016 Westminster Hall

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. I, too, congratulate my hon. Friend the Member for Leicester West (Liz Kendall) on securing a debate that is close to my heart. I was a councillor before I entered Parliament, and I saw at first hand the effects of the Government’s policies because I was in charge of a £22 million budget. The Chancellor will often talk about making tough decisions to secure economic stability, but when it comes to direct attacks, such as cuts to tax credits or police budgets, the Government make embarrassing U-turns. However, when it comes to cuts to local government, they persist, because they can shove the blame on to local councillors and local councils, who then have to face angry residents.

When I was on Camden Council, we were told to find £80 million of cuts between 2010 and 2014. That level of cuts cannot be found just through efficiencies and cutting the fat and discretionary services. We had to cut front-line services. Consider this: by 2018, Camden Council will receive half of what it receives from central Government. In a few years’ time, the council will have to have cut £180 million from its budget. That represents one year’s spending on adult social care—including mental health services—at £99 million, homelessness support at £33 million and waste services at £36 million.

Parts of Brent are in my constituency, and that borough has had an £80 million shortfall. It will face further cuts of 25% over the next three years, and it is considered to be one of the four most vulnerable boroughs in London. It ranks in the top 10% of vulnerable boroughs in the country. Some 31% of children in the borough live in families that are dependent on tax credits. One third of residents live on salaries below the London living wage, because of our low-wage economy.

[Liz Kendall]

My hon. Friend mentions the difficulties and cuts in social care services. Has she seen in her local NHS the problems of more elderly people going into hospital and the delayed discharges from hospital, which, as I have argued before, cost the taxpayer more?

[Tulip Siddiq]

I thank my hon. Friend for her intervention. Yes, I have seen real-life examples of the situations she describes. We could focus on many vulnerable groups, but I particularly want to mention people with mental health problems. The Prime Minister has said over and over that we should have a frank discussion about people with mental health problems and not talk about them in hushed tones or whisper around the topic. Well, let me tell the House: people with health problems are the ones who are shouting the loudest, because local services are a lifeline for people with mental health problems. One constituent of mine tells me that the day centre she relies on—which helps her to handle her mental health problems and helps her with independent living and support—will not be there any more because it will be receiving £100,000 of cuts in the next few years.

We cannot talk about fixing the roof when the sun is shining if we crush the roots of local democracy, which is what is happening by disfranchising people and taking away the services they rely on. I urge the Minister to think carefully about how local councils are struggling and suffering as their budgets are hit over and over by national Government. If we have to make tough decisions, we have to take it on the chin in national Government and not simply push the blame on to local councillors and councils that are dependent on handouts from national Government.