Education and Local Government

Kevin Hollinrake Excerpts

Tuesday 14th January 2020 Commons Chamber

[Gavin Williamson]

My right hon. Friend makes an important point about the need to encourage entrepreneurialism within our education system. We see this in many schools, and of course we also see it in many further education colleges and universities. I was very fortunate to visit King’s College London recently to see the brilliant student business incubator model it has there, which is making such an impact. How do we expand that to more universities, while making sure that schools are teaching the value of entrepreneurialism in what they are doing?

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Is the Secretary of State aware of the excellent families of schools initiative, which works with primary schoolchildren —again, exactly the point made by my right hon. Friend the Member for Wokingham (John Redwood)—in extolling the benefits of self-employment to very young children to instil such values at that age?

[Gavin Williamson]

My hon. Friend highlights an important scheme that is going out there and selling the virtues of entrepreneurialism at the start of a child’s educational learning. That is certainly something we very much want to encourage across the education spectrum.

We all know how important a loving home is to a child’s development and we want to give parents all the support we can. We have announced a new £1 billion investment to create more high-quality, affordable childcare provision for families with school-age children, including a £250 million capital fund to help schools to overcome barriers to offering on-site childcare provision. The aim of this Government is always to be there supporting parents and families as they bring up their children.

Thanks to our reforms, standards in schools have been rising, but that does not mean that this is the moment to ease up or stop that progress. Schools should be safe and disciplined spaces, where pupils can learn in a happy and secure way. That is why we are investing £10 million to establish behaviour hubs to help teachers who are having to deal with disruption in the classroom and within a school. We are also expanding alternative provision schools for troubled or disruptive youngsters. We have launched a £4 million alternative provision innovation fund. Projects being run as part of that will guide our plans for this important sector, which needs reform and change.

--- Later in debate ---

[Mr Betts]

Yes, I do. People cannot sell their properties and they cannot get mortgages on them, and this whole area presents a real challenge. It is no use Ministers saying, “We don’t think this is quite as dangerous”, because the fact is that that cladding on a building means that people will not buy, and people cannot get a mortgage and are stuck. The Minister needs to act at some point on that. The freeholders have not got the money to pay for this and neither have the leaseholders, and people are stuck in unsaleable properties, which is a real difficulty for them.

[Kevin Hollinrake]

I very much hope that the hon. Gentleman does stand again to be Chair, because it has been a pleasure to serve on the Select Committee under his tutelage over the past four and a half years. He mentions not only the problems of local authority financing and their finances, but the social care premium. Does he see those two things as being correlated? The biggest issue for local authorities is the funding of social care, and if a different solution is provided for that, the financial pressure on many local authorities is relieved.

[Mr Betts]

The hon. Gentleman is absolutely right about that, although perhaps I should call him my hon. Friend for this purpose, given how we have worked together on the Select Committee. The problem with the great and rising demand for social care is that it means that there is proportionately less money to be spent on important things such as the environment, road repairs and refuse collection, the things that everybody receives from their local council. Many people then start to say, “Why am I paying my council tax? I am getting less and less for paying more and more.” That issue can be addressed by a social care premium as well.

Finally, on the cladding issue, it came to my attention over Christmas—I did a bit for the “You & Yours” programme—that the National House Building Council is refusing to pay out on a warranty for properties where the cladding put on was not the right type but it had been improperly passed by the building inspector. The NHBC said that it was not its building inspector and the warranty applied only in cases where its building inspector had done the work. That is a major loophole in people’s circumstances. When people have bought a house and got a warranty, they think that that warranty is going to cover them for defective materials. However, if that defective material was passed off by a building inspector that was not the NHBC’s inspector, as in this case, they are not covered. I hope the Secretary of State will look at that issue too. I recognise the time limit, Mr Deputy Speaker, but these are major issues that arise from the Queen’s Speech. I hope that there will be some cross-party working, perhaps through the Select Committee, that will help us move forward.

--- Later in debate ---

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Congratulations on your election, Madam Deputy Speaker—although there was no need for an election. It is always a pleasure to speak when a fellow Yorkshire MP is in the Chair.

I have been casting my mind back to when I made my own maiden speech. I found it a daunting experience, and I am pretty daunted now by having to follow some of these amazing maiden speeches. They have been truly exceptional, and I congratulate all those who have made their speeches today, and the rest who will make theirs over the next few days. I give them my very best wishes for their future in this place.

I would like to speak principally about levelling up. That is something that clearly encompasses the two main themes of today’s debate: education and local government. “Levelling up” is an excellent phrase that has come from somebody who is very good at articulating phrases to achieve their political ends. It is something that I and many other colleagues on both sides of the Chamber have been banging on about for years. It is based not on grievance but on sound economics. It is about opportunities for people in the north, but it is also a huge opportunity for UK plc.

The solution to levelling up is pretty simple. It is about more public sector investment and more private sector investment. However, “simple” and “easy” are two separate things. The Government are now committed to a huge, £100 billion investment in infrastructure. It has not been easy, over the past four and a half years, to persuade the Treasury to do that, but it is committed to doing it now. However, the trickier problem is ensuring that we get private sector investment, too. Public sector investment on its own simply will not do.

Investment in the north—and not just the north but the regions of England and the other nations of the United Kingdom—is not about political opportunism. It is about sound economics and has the support of some of the economists that I have a great deal of faith in. Jim O’Neill, for example, is an ardent remainer, but he said earlier this year that being in or out of the EU was not the most important thing, and that our productivity performance and our geographic inequality were the most important issues we needed to deal with. Andy Haldane, the chief economist at the Bank of England, noted in a recent speech that the regional income gap between the richest and poorest regions in terms of average incomes was now larger than it had been at any time in the early 20th century. That gap narrowed in the first 80 years of the last century.

David Smith, the economist who writes in The Sunday Times, has welcomed the £100 billion investment in infrastructure and talked about the change we need to make to the Green Book to ensure that northern and midlands projects, and projects in the south-west and other parts of the country, are stacked up better. He identified the fact that the gross value added—the productivity—in London is about £50,000 per person per annum, whereas in Yorkshire and Humberside and the north-east, it is just over £20,000 per annum. There is a clear relationship between average incomes and productivity, so it totally follows that if we get the productivity right, average incomes will grow. However, as David Smith said in his column this weekend, public investment works only when it is in harmony with private investment. Another very good economist, Mark Littlewood of the Institute of Economic Affairs, has been quite scathing about infrastructure investment. He has pointed out, for example, that Doncaster has very good road and rail communication links but still has a long way to go to match the productivity and prosperity levels of London and the south-east. So infrastructure alone will not solve this tough, long-term and expensive problem.

If we are to repay the trust of all the people right across the north who voted Conservative, including in places such as Darlington, where I spent a lot of time campaigning over the election period, we must ensure that real incomes grow and that we get better jobs, and all that can be derived from higher productivity. We must see higher public sector investment and higher private sector investment.

The public sector is relatively straightforward. We have been campaigning for some time to get £120 billion spent right across the north with a 30-year plan. That is what will hopefully be announced at the Budget, but we need a raft of other policy ideas to encourage private sector investment in some of the left behind towns. Free ports are a great policy, but Darlington and many other constituencies will not benefit from them. We perhaps need enterprise zones in town centres rather than business parks, and incentives to retrain the long-term unemployed. We need an SME-first policy. Preston City Council, for example, has radically shifted the amount of money it spends with SMEs, and we know that SMEs invest a much larger proportion of their income back into the local community. We need more public sector jobs. We need to consider our high streets and business rates. Building homes at a discount is an excellent Government policy.

Key to all that is devolution. We must ensure that we hand powers back to the people who know the towns best and will represent them most effectively. We need to do all these things to get private sector investment as well as public sector investment.

--- Later in debate ---

[Andrew Gwynne (Denton and Reddish) (Lab)]

We have had a good and well-informed debate. Local government matters. Our councils keep our streets clean. They make our towns and cities safer. They protect and support the most vulnerable in society, and they maintain our open green spaces. When we all inevitably grow older, they should also allow us to have dignity in older age, but the fact is simple: without the resources that they need directed to the areas that need it the most, that is not possible. I want to pay tribute to councillors of all political persuasions and none, and the dedicated officers and staff who work day in, day out to deliver our public services in our councils across the country.

It has been great to listen to contributions from 30 Back Benchers today, including my hon. Friends the Members for Sheffield South East (Mr Betts), for Bristol South (Karin Smyth), for Huddersfield (Mr Sheerman), for Lewisham East (Janet Daby), for St Helens North (Conor McGinn), for Birmingham, Selly Oak (Steve McCabe), for St Helens South and Whiston (Ms Rimmer), for Nottingham North (Alex Norris), for Stockton North (Alex Cunningham), for Enfield, Southgate (Bambos Charalambous) and for Sheffield Central (Paul Blomfield); the right hon. Members for Epsom and Ewell (Chris Grayling), for Haltemprice and Howden (Mr Davis), for Harlow (Robert Halfon) and for Bexleyheath and Crayford (Sir David Evennett); and the hon. Members for Poole (Sir Robert Syms), for Oxford West and Abingdon (Layla Moran), for Thirsk and Malton (Kevin Hollinrake), for Carlisle (John Stevenson), for Glasgow East (David Linden) and for Witney (Robert Courts).

I pay a special tribute to all the Members who spoke in this Chamber for the first time. Their excellent maiden speeches show that, on whichever side of the Chamber we sit, we share a common purpose: to represent our constituents and our constituencies in the best way that we can. I congratulate the hon. Members for Wantage (David Johnston), for Ipswich (Tom Hunt), for Milton Keynes North (Ben Everitt), for Bury North (James Daly), for Eastleigh (Paul Holmes), for Stoke-on-Trent North (Jonathan Gullis) and for Gedling (Tom Randall). They made excellent contributions on education and social mobility. We were given tours of their constituencies and told snippets of information that we might not already have known. In the spirit of cross-party co-operation, we can all raise a glass of Concrete Cow—but the hon. Member for Milton Keynes North is paying. I would like to thank those Members for their kind words about our former Labour colleagues Sandy Martin, James Frith, Ruth Smeeth and Vernon Coaker, who all served those constituencies diligently during their time in the House.

I will have a gin on the hon. Member for North East Fife (Wendy Chamberlain). My ears pricked up when she described not just the whisky but the gin distilleries in her constituency. Now we know the secret of “squiffy” Asquith. It is great that my hon. Friend the Member for Luton South (Rachel Hopkins) brings so much knowledge of local government to the Chamber. She will no doubt use that expertise of not only local government but her constituency in debates in the years ahead. Like her, I served on my local council and I am proudly wearing my Tameside Metropolitan Borough Council badge, which was given to me by the Mayor of Tameside. Like her constituency, mine has a link with the hatting industry because, like Luton, both Denton and Stockport were important centres of hat manufacturing. Of course, it is not just Luton Town football club who are the Hatters, but Stockport County football club.

In my maiden speech almost 15 years ago, I spoke about my time in local government and the pride I felt representing my home community—where I have always lived, where I grew up, where I went to school and where I brought up my own family. I know that the Members who spoke today who have had the privilege to serve in local government know of this pride and the important contribution that councillors make, despite the financial pressures that they continue to face.

The consequences of a decade of Government funding reductions to local government are visible to all in the unrepaired roads, the uncollected bins, the cuts to adult learning and the diminished public services in many parts of England. According to the Chartered Institute of Public Finance and Accountancy, over the last 10 years, almost a fifth of the UK’s libraries have closed. There are almost 10,000 fewer librarians now introducing the next generation of young people to the stories that inspired us all when we were young.

The money spent by this Government on Sure Start—one of the previous Labour Government’s greatest achievements —has been slashed in half, with catastrophic outcomes for the children and families most in need. The Sutton Trust estimates that as many as 1,000 Sure Start centres have closed since 2010. Less visible, however, are the stresses that have been placed on core services—planning services, building regulation, adult social care and child protection. These issues are also, sadly, far less visible in the Government’s plans in the Queen’s Speech.

Then we have the crisis in children’s services, which I spoke about yesterday in Housing, Communities and Local Government questions. Last week, we found out that in the past decade there has been a 139% rise in serious cases where the local authority believes a child may be suffering or is at risk of serious harm. The Local Government Association responded by stating:

“These figures show the sheer scale of the unprecedented demand pressures on children’s services and the care system this decade.”

On the steps of Downing Street in August last year, the Prime Minister claimed that he had a plan to fix the crisis in adult social care. I take on board the comments by the Select Committee Chair, my hon. Friend the Member for Sheffield South East, about the need to find a resolution to this, because the crisis in social care—both adult and children’s social care—is what is dragging our local authorities towards the cliff edge.

[Kevin Hollinrake]

Yes, we need a resolution, but I think the hon. Member for Sheffield South East (Mr Betts) said that we need a cross-party solution. The Select Committees came up jointly with a cross-party solution—a social care premium. Will the hon. Gentleman commit the Opposition to supporting any Government move in that direction?

[Andrew Gwynne]

Of course, the effect of the general election is that the hon. Gentleman’s party is responsible for delivering on public policy. We will work with his party to ensure that we do solve the social care crisis, because if we do not solve the social care crisis, local government suffers but, more importantly, those people who rely on social care—whether it is children or adults—suffer. It is incumbent on this House to come forward in this Parliament with solutions that we can all support.

In response to the funding crisis that is growing in several town halls across the country, the Secretary of State announced a finance settlement before Christmas that, sadly, barely keeps the wolves from the door. Of course, any extra resource for local government is welcome, and I welcome the fact that we have additional resource going in this year compared with previous years, but even the chair of the Local Government Association resources board called it the “least worst” settlement of the past decade— hardly a ringing endorsement. According to research from the House of Commons Library, while in 2018-19 there was an 8.1% cut in local authority funding, this year’s settlement represents a fall of 0.2%. In real terms, the settlement represents a cut in funding while demand for local services continues to grow. These figures are only possible if local authorities increase council tax by the maximum level possible, meaning eye-watering, inflation-busting tax increases for ordinary households. That is unfair on those areas, often with the greatest need, that are unable to raise sufficient sums from council tax increases. It is also economically incoherent, because the fact is that many areas will never be able to raise the money that they need through council tax alone.

On top of this, we have the Government’s fair funding review. I fear that, unless the Government change tack, this risks causing further problems for many of those councils that are already struggling. I urge the new Members on the Government Benches to pay real attention to what the Government are proposing in their fair funding review, because their constituents will be forced to bear the cost of some of these changes, particularly in urban areas where the changes will impact the most.

Funding for social care for older people is due to drop in London, the west midlands, the north-east and the north-west at a time when demand for these services is rising. We on the Labour Benches will be urging the Government to change direction. Local government is the beating heart of our communities. We will work closely with the Government where we support their measures, but we will watch very carefully as the Government’s plans become clearer. I give the Secretary of State my word: we will support positive changes that can generate cross-party consensus, because local government and the communities we represent need that approach, but we will also robustly scrutinise and challenge the Government on finance, on regional disparities, on inequalities, on financial fairness and on need, because our communities expect nothing less.

--- Later in debate ---

[Robert Jenrick]

I would be happy to meet the hon. Lady—in fact, I have written to her council leader suggesting that we speak as soon as possible.

We will also invest more in affordable housing. We know that we cannot meet our objectives without more affordable homes. The Government have built 450,000 so far and we intend to go further. We will be replacing our affordable homes programme with a new one and we have lifted the housing revenue account borrowing cap so that councils across the country can build more homes. We want better designed, safer, more beautiful homes, rooted in communities, and we are creating a design code so that every community can have a right to demand good-quality, well-designed homes that work for them.

We are also going to boost home ownership, as a good in itself, because we believe that a home is more than four walls and a roof—it is about someone investing in their future and their family, and putting down roots in a community. As my hon. Friend the Member for Poole said, it is about building an ownership society. We will do that with our next step, on first homes, with a 30% discount for local people buying homes in their community, which was championed by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake).

We will also ensure that homes that we build in this country are safe. We have learnt a great deal following the tragedy of Grenfell Tower and we know that our building safety regime needs urgent reform. We have two Bills in the Queen’s Speech, one of which is a building safety Bill, which will be the biggest change to our building safety regime in this country for 40 years. That will be a complex piece of legislation that I hope—as the hon. Member for Sheffield South East (Mr Betts), the former Chair of the Housing, Communities and Local Government Committee said—will command cross-party support so that we can build a robust system that lasts into the future.

[Kevin Hollinrake]

On my right hon. Friend’s next step on homes—I appreciate his reference to me—it is an excellent policy that will make home ownership much more affordable for lots of local first-time buyers. Will he consider blending it with Help to Buy to make it even more affordable and therefore even easier for people to get on the housing ladder?

[Robert Jenrick]

I will consider that a Budget bid and pass it on to my right hon. Friend the Chancellor. We will certainly blend it with things such as shared ownership and reform that model to take out some abuses that we have seen in recent years.

In addition to the building safety Bill, we will bring forward another Bill on fire safety sooner than that to ensure that we act urgently on the recommendations of the judge in the Grenfell inquiry. Again, I hope that those Bills can command cross-party support. We will answer some of the questions raised by numerous Members on the position of leaseholders not only through publishing a draft Bill shortly to outlaw leasehold for new homes and to reduce ground rents to a peppercorn, but by listening to the recommendations of the Law Commission and the Competition and Markets Authority to ensure that leasehold works for everyone and is a fair and sustainable system into the future.