Local Government Funding

Debate between Yasmin Qureshi and Faisal Rashid

Wednesday 27th March 2019 Westminster Hall

[Yasmin Qureshi]

I thank my hon. Friend for that intervention.

We are all aware of the fact that post-industrial towns and cities in the north of England such as Bolton have been hit hardest by the deep cuts to local government spending. The idea that the Government sometimes project—that austerity hits everyone equally—is nonsense. The cuts are nothing less than politically motivated. The heaviest have been in the most deprived regions that are often thought of as economically left behind. That is compounded by the fact that those areas have the highest levels of poverty and a lower capacity to mitigate cuts through local taxation or asset sales.

My local council, Bolton, has lost about £l billion in spending power since austerity began in 2010. That has impacted on social care, with adult and child services taking the biggest hit, despite being the areas with the highest demand. As many hon. Members have said, we have an ageing population and therefore the impact on the social care budget is getting bigger. More and more children are being taken into care, meaning that the amount of money required is increasing.

Colleagues have mentioned the pressures on local authorities. For example, over the past three years, Bolton Council’s adult services department had to find more than £10 million of savings, including £8.8 million from children’s services. My local authority had to raise council tax, specifically to pay for social care. That led to its critics saying, “Oh, the council is raising taxes”, but nobody spoke about the fact that it had no choice. With funding cuts of 50%, what was it to do other than raise local taxation to fill that gap? The Institute for Fiscal Studies has estimated that between 2010 and 2020 local government will have had its direct funding cut by 79%. Let that sink in: 79%!

[Faisal Rashid]

While the Prime Minister was announcing the end of austerity last October, more than 5,000 councillors signed the “Breaking Point” petition to call on the Government to cancel their planned cuts for the new year and immediately to invest £2 billion in children and adult services. Does—

[Mrs Anne Main (in the Chair)]

Order. Interventions must be brief. That was a mini-speech, and the hon. Gentleman has been here for only half the debate. I want to give the hon. Member for Bolton South East (Yasmin Qureshi) time to continue with her speech. I am sure she has the gist of what he had to say.