District Council Finances

Alberto Costa Excerpts

Wednesday 1st May 2019 Westminster Hall

[Mark Pawsey (Rugby) (Con)]

I beg to move,

That this House has considered district council finances.

It is a great pleasure to serve under your chairmanship, Mr Gapes. I am very pleased to have finally secured a debate on the finances of district councils, which is an important subject. The fact that we got the debate now is testimony to the popularity of debates in Westminster Hall. I shall speak about a report that was published by the all-party parliamentary group for district councils in July 2018. Since our return after last year’s summer recess, I have consistently been applying for the debate, and we have finally got it, and with local elections tomorrow, it is extremely timely—persistence has finally paid off.

I am a Member of Parliament representing a district; I represent the borough of Rugby. I am a former district councillor and member of that authority, and very proud to have represented my community on the council and to have the opportunity to represent it in Parliament. As a former member of a district council, I strongly believe that they have a vital role to play in the next few years in shaping and delivering Government strategy, supporting local growth, building the homes we need and providing the preventive services that are necessary for sustainable health services.

To set the context, there are 192 district councils. In two-tier areas, they deliver 86 of 137 essential local government services to 22 million people, which is 40% of the population. District councils cover 68% of the country by area. One of their most important functions is as the housing and planning authority; they approve 90% of planning applications in their areas and enabled over 91,000 new homes to be delivered last year.

I am very proud to say that my local authority, Rugby Borough Council, saw 584 dwellings completed in 2017-18. It is a great example of a district that looks favourably on house building and development, and it has a very progressive attitude. I know the Minister saw that on his recent visit to Halton, which is an excellent example in my constituency of house building at scale, with a development that will consist of 6,200 homes by the time it is completed.

In two-tier areas, the county council area is divided into a number of districts, which each have an independent district council. I firmly believe that district councils are closer to their residents than are the vast majority of other forms of local government, which is one of the reasons I strongly believe that they should be protected. Rugby town hall is in the middle of our community. It is accessible by all residents and immediately identifiable; it gives a sense of identity to our community. I know there are pressures that are leading some areas to consider alternative arrangements—in particular, there is a move towards unitarisation—but in my area that would be neither practical nor in the best interests of our residents. Districts operate on a size and scale that makes sense to local communities, and they have a unique understanding of the residents they serve.

[Alberto Costa (South Leicestershire) (Con)]

May I take this opportunity to congratulate my hon. Friend on securing this important debate? Blaby District Council and Harborough District Council, led respectively by Councillor Terry Richardson and Councillor Neil Bannister, are both excellently run. Does my hon. Friend agree that any proposal for unitarisation of the Leicestershire area is not welcomed by the district councils?

[Mark Pawsey]

I share the views of my hon. Friend in believing that districts are the right-sized and best-located authorities to deliver a substantial number of services to local residents. I fear that some of that connectivity and identity would be lost in a larger organisation.

I will now talk about some of the things that district councils have been able to do. One key issue that came out of our report is that district councils have a proven track record of devising innovative solutions to transform public services by taking a lead in improving services and providing outcomes for people through better collaboration. That is a really important point, which we will come back to again and again. It is driven by a financial imperative in some instances, but in many ways it is driven by the desire to do things better.

District councils have a proven track record in building better lives and bigger economies in the areas they serve. Through their roles in planning and housing, they act as the building blocks for local economic growth, and in many ways districts work collaboratively with each other and alongside newly established local enterprise partnerships to deliver growth and support local businesses and industry. I believe that district councils also protect and enhance the quality of life by safeguarding our environment, which is an issue we will be considering later today in the Chamber. Promoting public health, leisure and a sound environment is an important role, creating attractive places to live and where people will want to raise their families and build an economy. Districts are also tasked with the challenge of tackling homelessness—again, their proximity to the people and knowledge of individuals is important—and the duty to promote wellbeing.

For district councils to deliver for their residents and the businesses in their area, it is important to ensure that they have sustainable and suitable levels of funding, which is the matter I want to address. It is why the all-party parliamentary group for district councils, which I chair, held a formal Select Committee-type inquiry on the finances of district councils. We published our report, “Delivering the District Difference,” in July 2018. I want to put on the record my gratitude to the 60 local authorities that provided written evidence to the APPG, and I thank the seven district councils, including Rugby Borough Council, that came before us and provided oral evidence to the APPG in Parliament. I am also grateful to many parliamentary colleagues who sat on that committee, particularly the hon. Member for Stroud (Dr Drew), who took part in the evidence sessions and is here today.

Our report was a major piece of work, and we collaborated with the District Councils’ Network to ensure that we were working closely with the sector. I thank the DCN for its valuable contribution to the report. In our evidence sessions, it came across loud and clear that district councils under financial pressures have identified innovative and efficient ways of doing things differently to provide better value for money to local taxpayers. A recent Local Government Association report found that district councils have saved £224 million through sharing services with other districts and bodies, which is far more than any other type of council.

I will give some examples of shared working arrangements that my local authority, Rugby Borough Council, has with others. Rugby has a shared service on building control with Warwick District Council and works on procurement with our neighbours, Nuneaton and Bedworth Borough Council. A particularly useful case study in Rugby involves its working closely with Daventry District Council to provide local crematorium and cemetery services. On its own, neither authority was of a sufficient size to be able to deliver these services efficiently, and my constituents wishing to use crematorium services were obliged to make lengthy journeys to either Coventry or the other side of Warwick. There had been an aspiration for such a service in Rugby for some time, but it was recognised that, in isolation, Rugby was not of sufficient size to deliver it. By working with Daventry and providing a facility on the border between the two authorities, we have ensured that the residents of both local authorities have great provision.

National Audit Office figures show that district councils have experienced the most significant real-terms cut in spending power between 2016-17 and 2019-20, which has required them to be enterprising. One of Rugby’s overarching corporate priorities is to become financially self-sufficient by 2020. It is seeking to reduce its reliance on the sometimes arbitrary and variable central Government funding sources and take control of its sources of income through local taxation arising from economic growth and investment income. When I was a councillor, I was always aware of concerns that the pots of funding might or might not be available. They were sometimes arbitrary or time-limited, which meant that it was difficult to plan for the long term. Rugby aims to be financially self-sufficient so that it is no longer reliant on those variable sources. That will ensure better provision for my constituents in the long term.

All councils have had to work hard to achieve more with less. Between 2010 and 2020, councils in England will have lost almost 60p of every pound of central Government funding. For district councils, that equates to almost £1 billion. I know the Minister recognises the role that districts have played in identifying savings, and is aware of the burden that they have shouldered in recent years.

[Alberto Costa]

I thank my hon. Friend for his generosity in giving way again. The district councils in my constituency have highlighted the ever-increasing cost of waste and recycling services. Proposals to scrap a charge on green waste collection and introduce weekly food waste collections, although laudable, are likely to put significant financial burdens on district councils. Does my hon. Friend agree that, should district councils implement those changes, proper and full support is needed from central Government?

Local Government Finance

Alberto Costa Excerpts

Tuesday 5th February 2019 Commons Chamber

[James Brokenshire]

I will take one final intervention, but then I will make some progress, because I know that a lot of Members want to speak and I am conscious that interventions will eat into their time.

[Alberto Costa (South Leicestershire) (Con)]

Does my right hon. Friend agree that the measures he is outlining will help Leicestershire County Council, which is involved in the business rate retention pilot scheme, as well as Harborough District Council and Blaby District Council? Those three local authorities are led by excellent Conservative administrations.

[James Brokenshire]

I commend the Conservative authorities in my hon. Friend’s area for their work, and I commend him for his recognition of the benefit that accrues from the business rate retention pilots and of how funding from the growth in business rates can be invested into local services. That is why we want to move to this new system throughout the next financial year.

These proposals will amount to a real-terms increase, but I know that we face a number of challenges. Among the most serious is the responsibility that councils—and, indeed, all of us—have towards the most vulnerable in our society. It is therefore right that out of the more than £1 billion of extra funding committed at last year’s Budget, £650 million will go towards adult and children’s social care in 2019-20. This will help to meet the pressures resulting from an ageing population. Some £240 million of that amount has been allocated to ease pressures on the NHS, and that is on top of the £240 million announced in October to address current winter pressures. The remaining £410 million can be spent on either adult or children’s social care and, where necessary, to take pressure off the NHS. I know that local authorities will value that flexibility greatly.

We are investing a further £84 million over the next five years to expand three of our most successful children’s social care innovation programme projects in up to 20 local authorities to keep more children at home safely. We are supporting local authorities to make the best use of available resources and to increase efficiency, as well as to innovate and improve the way in which they deliver services. Better integration of the health and care systems with other local services is essential, particularly in regard to social care. The long-term NHS plan, with its welcome shift from acute to community healthcare services, together with the upcoming social care Green Paper, will make a big difference.

Local Government Funding

Alberto Costa Excerpts

Wednesday 28th March 2018 Commons Chamber

[Sajid Javid]

I hope that the hon. Lady will appreciate what I am about to come on to: an understanding of how we got into this situation and how we can avoid getting back into it. Liverpool City Council is part of the Liverpool city region, which has been getting a lot more money recently—especially for investments, to encourage growth and jobs. If other members of the Liverpool city region, such as Wirral, for example, stopped wasting a quarter of a million pounds every year on some council Pravda, perhaps they would spend money more efficiently.

[Alberto Costa (South Leicestershire) (Con)]

My right hon. Friend mentioned a moment ago that he is going to explain how we got into this position. Will he elucidate what was meant by the last Labour Chief Secretary to the Treasury in the note that said that there was no money left?

[Sajid Javid]

I thank my hon. Friend, who brings me to precisely the point I was about to make, which will help explain exactly why the last Labour Chief Secretary left that note for his successor.

In considering how this climate was created, we need to step back and remember what the Government inherited in 2010: the biggest budget deficit in peacetime, of £150 billion, and Labour’s great recession—the deepest in almost 100 years. If that was not enough, there was also the biggest banking bail-out ever: just one bank bailed out to the tune of £50 billion.

--- Later in debate ---

[Sajid Javid]

Yes, I can give my hon. Friend that reassurance. I shall say more about how the system is going to work in a moment.

Our aim is to go further and for local authorities to retain 75% of business rates from 2020-21, as we work towards 100% retention. With that in mind, in December I announced an expansion of the 100% retention pilots that have proved so popular. More than 200 authorities came forward to bid for the new 100% business rates retention pilots that we are going to run in 2018-19. I was pleased to respond to that enthusiasm by doubling the number of initial pilots to 10, covering some 89 authorities. The 10 that we have selected, taken alongside the existing pilots, give a geographic spread to help us to see how well the system works across a broad range of areas and circumstances. The pilot areas will keep 100% of the growth in their business rates if they expand their local economies—that is double what they can keep now. There will also be opportunities for others to get involved, with a further bidding round for pilots in 2019-20, which will open in due course.

[Alberto Costa]

I thank my right hon. Friend for making that point. Would he encourage Leicestershire County Council and other well-run Conservative-led councils to make further bids for the pilots?

[Sajid Javid]

Yes, I would certainly encourage all those councils that are creative and innovative, and that want to support local businesses and to look at new ways of funding and delivering services, to bid when we open up opportunities for new pilots.

Grenfell Update

Alberto Costa Excerpts

Thursday 22nd March 2018 Commons Chamber

[Sajid Javid]

I thank the hon. Gentleman for his comments, and I am happy to respond to the points he raised.

The hon. Gentleman is absolutely right to question, as the taskforce has done in its second report, the speed of rehousing. However, it is appropriate to remind the House that, right from the start, the intention of the council and everyone involved is, rightly, to treat every individual as just that—an individual. If the objective from day one had been to get people out of hotels and into homes without listening to their needs, that clearly would have been wrong. It has been right at every step to work with each one of the households affected. For example, when numerous households said that they would like to take the opportunity to split, particularly if they had different generations in homes, we listened to them. There were 151 homes lost in the fire, but 208 households need to be rehoused because the council rightly listened to the needs of the families.

I will not go through all the numbers, but of the 208 households who need rehousing, 22 have not accepted any offer of temporary or permanent accommodation, despite the fact that more than 300 properties of all different sizes and in different locations are now available for those families. There are 22 who have yet to accept an offer. I hope the hon. Gentleman understands that many of those families are still very traumatised and that some are not in a position to even want to make a decision about leaving the hotel. I hope he agrees that in such situations no family should be forced into accommodation they are not comfortable with. However, I accept his wider point about treating the issue with the urgency it deserves, which is why I hope that when the council responds to the taskforce report, it will accept all its recommendations on rehousing and all the other issues.

The hon. Gentleman asked whether I have confidence in the council. Yes, I do have confidence in the council. I would like to see more. I agree with the taskforce recommendations. I still feel that it was right to intervene when I did and to have the taskforce go in and provide scrutiny.

On the building safety programme, we believe that there are 301 tall residential towers over 18 metres high whose ACM cladding does not meet building regulations. Immediate interim measures have been taken in every single one of those buildings, to ensure that the residents feel safe. All those measures have been taken in consultation with the local fire service, to make sure that there is proper expert advice, and it is accepted that they are appropriate measures. Of those buildings, 130 are in the private sector. Local authorities are the primary bodies responsible for seeing whether there are any more such buildings in the private sector in their respective areas. We have provided them with a tremendous amount of support, including an additional £1 million, which we recently released at their request, and we continue to work with them. Of the 158 buildings in the social sector, remediation work has begun on 92 of them—58%—and the work has been completed on seven.

I hope that the hon. Gentleman respects the fact that, once a building has been identified, it takes time to take down the cladding and replace it appropriately, but we are supporting local authorities in doing that work, including where they need financial flexibility and support. We have been approached by 41 local authorities so far. Interestingly, only 13 of those 41 authorities have reported that they have residential towers with ACM cladding that they are trying to remedy. Understandably, however, other issues have come up, such as a demand for sprinklers and other forms of action. In each of those cases, we have said to the local authorities that it is right for them to determine, with professional advice, what essential work they need to do, and we will work with them on financial flexibilities if that is required.

The hon. Gentleman asked about fire doors, and that work continues. As he knows, we are working with the independent expert panel, the National Fire Chiefs Council and the Government’s scientific advisers. There has been testing, including visual inspections, and the testing in labs continues. The independent experts are still advising us that there is a low risk to public safety—at this point, they feel that there is no systemic risk—but their work continues, as does the assessment work.

Lastly, the hon. Gentleman asked about building regulations. He rightly said that developments of course continue as we speak, and we need to make sure that there is full confidence in the building regulations system. That is exactly why a report is being prepared independently by Dame Judith Hackitt. All the recommendations in her interim report have been accepted, and each of them is being implemented. We await her final report, which I think will bring much more clarity to this area.

[Alberto Costa (South Leicestershire) (Con)]

I thank my right hon. Friend for his very important statement. Will he confirm that interim safety measures have been taken for all social housing blocks with unsuitable cladding, and that in the majority of cases the remediation work has already begun?

[Sajid Javid]

Yes, I am very happy to confirm that to my hon. Friend. In every single case in which tall residential buildings have been identified with ACM cladding that we believe does not meet building regulations, interim safety measures have been taken, and work has begun on a majority of social buildings.