Local Government Finance (England)

Debate between Greg Clark and Gareth Thomas

Wednesday 10th February 2016 Commons Chamber

[Greg Clark]

I am pleased to open the debate on this year’s report on local government finance in England. I would like to start by thanking all colleagues in the House, and council leaders and officials, who contributed to the consultation after I made a provisional statement shortly before Christmas. Nearly 280 groups or individuals contributed to the consultation. All responses have been carefully considered, and sensible suggestions have been incorporated into the final settlement that is before the House today.

I have always been frank with local councils that they will need to continue to make savings. Local government accounts for nearly one quarter of public spending, so it is inevitable and appropriate that councils should play their part in helping to reduce the national deficit. Council tax payers are also national tax payers; they are the same people—our constituents—and everyone suffers if we run a permanent, untamed deficit.

Councils have accepted their part in this responsibility. During the last Parliament, all parts of local government delivered the savings that have helped to reduce the deficit by half. At the same time, satisfaction with the services provided by local councils has been maintained—a remarkable reflection on the professionalism and the resourcefulness of local government.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

Does the Secretary of State understand the frustration of my constituents at the settlement for Harrow Council? We have one of the lowest per capita settlements in London. The council is having to make £80 million of cuts over four years, leading among other things to the closure of the popular Bridge mental health day centre.

[Greg Clark]

What I would say to the hon. Gentleman is that London Councils welcomed many of the changes we have made in this settlement, including the provision of a four-year settlement. One of the concerns councils have had for many years is that, with annual funding, they were not able to plan ahead and reap some of the economies.

Cities and Local Government Devolution Bill [Lords]

Debate between Greg Clark and Gareth Thomas

Wednesday 14th October 2015 Commons Chamber

[Greg Clark]

I will indeed, and I would like to reciprocate the hon. Gentleman’s compliment. Both in his role as Select Committee Chair in the last Parliament and through his personal work in Nottingham, driving the regeneration of what he terms the outer estates in his city, the hon. Gentleman brings and personifies a degree of local knowledge of the problems and of the people, many of whom he has introduced me to on my visits to his city, which it would be impossible to replicate in Whitehall. That provides a good example of why we need to devolve in exactly the way that the hon. Gentleman said.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

Let me take the right hon. Gentleman back to the subject raised by the right hon. Member for Wokingham (John Redwood)—the issue of where the money comes from to finance devolution. The Secretary of State will be aware of the work of the current Mayor championing full fiscal devolution for London—not just of business rates, but of a series of other local property taxes. Why has the Chancellor resisted devolving control of those additional property taxes?

[Greg Clark]

I think the hon. Gentleman is being a bit churlish. Part of the Mayor’s campaign was to have 100% retention of business rates. That has been secured, and the mayor was appropriately generous in his praise for the Chancellor for doing so. We are rightly responding to a long-standing campaign to make this devolution work, which is a very important step forward.

--- Later in debate ---

[Greg Clark]

I am going to make some progress. I have spoken for half an hour and a lot of Members want to speak.

The Bill is intended to honour our pledge to bring prosperity and opportunity to every part of the country. We must address the problem of recent years of how to prevent the strength of London—valuable and desirable though it is—from overshadowing the opportunity for other parts of the country to achieve their potential. It is very important that no one and no place shall be left behind. Talking of one nation, as Disraeli said,

“the greatest good you can do for another is not just to share your riches, but to reveal to him his own.”

Our local communities are aware of their riches and they want the opportunity to show them, to make use of them and to burnish them in a way that they have been prevented from doing in the past.

Let me say a few words about the progress that was made in the last Parliament.

[Mr Gareth Thomas]

rose—

[Greg Clark]

I want to make some progress and I will perhaps give way a little later.

During the last Parliament, the Government introduced the concept of city deals, pioneering the approach of having a conversation with cities, in the first instance, to see whether there was any common ground—something that might be in the local interest and the national interest, and where agreement could be reached. That was followed by 39 growth deals. My hon. Friend the Member for North West Hampshire (Kit Malthouse) foresaw my being carried shoulder high at LGA conferences, but my experience at those, having negotiated the city deals, was that the leaders of our districts and counties did not so much carry me shoulder high as pursue me down corridors demanding that they should be able to be part of this devolution, and they were right to do so. That is why we extended our devolution arrangements to the 39 growth deals. It is important that we now take this to the next level and be able to devolve powers that Ministers and public bodies have to local authorities, be they individual authorities, combined authorities or mayoral authorities.

The important point to recognise is that the Bill gives no ability to strip any powers from any existing authority. All their powers continue and all the Bill’s proposals are directed at allowing this House, if it gives its approval, to take powers from Ministers and from national bodies and vest them in local government and local leaders. All the devolution is one way; no change is made to the powers and responsibilities of the constituent councils.