Local Government Funding

Baroness Bray of Coln Excerpts

Monday 6th December 2010 Commons Chamber

[Alex Cunningham (Stockton North) (Lab)]

We have already heard from many of my hon. Friends about the impact of local government cuts on their constituents and local authority workers. Let me begin by paying tribute to those workers, who deliver services not in return for salaries of more than £100,000 or more than £25,000 a year, but in return for salaries of less than £15,000—and, in the case of the many who are women, less than £10,000 a year.

Let us be clear about the fact that, despite what the Government say, these cuts will affect care for the elderly and children. They will affect schools and education, thus ensuring that our children do not have the best start in life. There will be safety reductions as funds for our fire brigades are devastated. There will be reductions in street cleaning, closures of swimming pools, art galleries and leisure centres. There will be cuts in the funds of voluntary organisations that support some of our most vulnerable people, cuts in the funds to support investment—including inward investment—in jobs, and cuts that will cause the gap in life expectancy between our most deprived and our most affluent areas to continue to widen, rather than continuing to close as it did under the Labour Government.

Let me say something about how the cuts will affect people in Teesside, and particularly in the borough of Stockton. Before becoming a Member of Parliament, I served as a councillor on Stockton borough council. I know from direct experience that Stockton has an excellent local authority that provides first-class services for local residents. I have seen the successes that it has achieved. I have seen improvements in education and care for the elderly and the young, improvements in housing, the development of Sure Start Centres supporting not just vulnerable families but working families throughout the borough, and the development of the arts with the international riverside festival and our celebrated ARC arts centre. The council has a “can do, will do” approach, and it is worthy of its “council of the year” title. I am confident that it will work hard to minimise cuts in front-line services and redundancies, but given cuts of this scale, even the best local authorities will struggle.

I am told that 50,000 people working for local authorities throughout the country have already been told that they could lose their jobs. That number will inevitably rise to the half million predicted by the Government, although I know that they are now trying to talk that number down. The Teesside Evening Gazette reports today that no fewer than 900 employees of Redcar and Cleveland borough council—a relatively small authority—have been given notice that their jobs are at risk, just 20 days before Christmas. Of course, the people who rely most on council services tend to be those on lower incomes. Why, then, are councils such as Hartlepool, in Teesside, and South Tyneside facing cuts of between 25% and 29% when South Cambridgeshire and West Oxfordshire councils are receiving increases of up to 37%?

In March this year, the Chancellor told the News of the World that he would not balance the budget on the backs of the poor. Now that his party is in government, he persists with the mantra “We are all in this together”. I do not think that many people, regardless of political persuasion, take that claim seriously.

It is not only the Conservatives who have back-tracked on their promises. The Liberal Democrat Manifesto said:

“Our core aim is to hard-wire fairness back into national life.”

I do not think that anyone working for a local authority who loses a job as a result of these cuts will think that there is anything fair about it, and the same applies to those who lose vital services.

[Angie Bray (Ealing Central and Acton) (Con)]

Even some of the hon. Gentleman’s colleagues have told us during the debate that they accept the necessity for cuts. We have seen the figures in the Labour party’s “pre-manifesto”, which revealed their own plans for the non-protected Departments: cuts of about 25%. Why does the hon. Gentleman persist in claiming that it is only the Government parties who propose cuts?

--- Later in debate ---

[Angie Bray (Ealing Central and Acton) (Con)]

Hon. Members will be pleased to know that I will keep my remarks short.

Given where the country finds itself financially, it would have been strange if local government had been immune to the tough choices that the coalition Government have been forced to take to cut the deficit and to get the country back on track. Decisions on local government spending are indeed tough, with a 7.5% cut in spending each year between now and 2014. However, as many colleagues have said, the cut may well be lower due to other revenue streams.

Although the impact is painful, the coalition has taken decisions to make it as fair as possible. Councils up and down the land will be supported in freezing council tax in 2011-12 through additional funding equivalent to the revenue from a 2.5% rise in council tax. That honours a coalition agreement promise to freeze council tax, even in the face of the worst debt crisis since the second world war. It is also an essential ingredient of the coalition’s policy on fairness, because it helps the lower-paid and pensioners in particular, who have seen their council tax double since 1997. The average band D council tax bill is now nearly £1,500, which frankly beggars belief.

As with so many issues, we still do not have a clue how the Labour party would approach this difficult funding issue. It has to get over its denial about the financial problems that face this country. It continues simply to complain and scaremonger, yet it never tells us how it would deal with the problem, except to imply that somehow it would be able to do so without having to take any difficult decisions. More likely, it is not coming clean with us about the plans that we know it had, because it does not want to talk about them any longer. We are where we are because of years of overspending without a care in the world by the Labour party. Now the pain starts as we rebuild our finances. At least Government Members know what we have to do.

The most important reform that the coalition is introducing in local government is more localism. One way in which the Government are trying to alleviate the difficult measures is to free funding from being overly ring-fenced. That will allow local councils to use their revenue with much more flexibility, so that they can meet local needs in the way that they know best.

[Neil Carmichael (Stroud) (Con)]

The debate has focused on two issues. Obviously, the cuts are the primary issue, but there is a secondary one. Does my hon. Friend agree that the opportunities that the coalition Government are giving local authorities to be imaginative and even radical in reforming their services and their approach to local government will pave the way for exciting, diversified and genuinely local authorities?

[Angie Bray]

I thank my hon. Friend for that contribution. Of course, I agree that it is a great thing to get local authorities back to doing what they do best, which is to work closely with their local residents to ensure that they give them what they need.

As hon. Members have said, many local authorities across the country are considering how they can take out costs in their back rooms by working together to run services. My hon. Friend the Member for Halesowen and Rowley Regis (James Morris) mentioned Kensington and Chelsea borough council getting together with Westminster city council and Hammersmith and Fulham council to do just that. Those boroughs happen to make up my previous London assembly seat and they are all, I should add, Conservative-run. They are doing what local councils should be doing—making efficiency savings in bureaucracy where possible, rather than hitting front-line services.

My local, Labour-led council, Ealing, has been quick to announce plans for a range of cuts, including cutting day care centres, a child protection officer and more than 50% of park rangers. Enviro-crime officers are also to be cut, from 23 to 12, yet it is happy to find £3 million for new computers at the town hall and, quite disgracefully, it is to continue funding full-time trade union officials to the tune of £250,000 a year.

[Tom Blenkinsop]

Regarding non-statutory duties and youth services, about which we have heard from the hon. Members for Bermondsey and Old Southwark (Simon Hughes) and for Croydon Central (Gavin Barwell), would the hon. Lady like to condemn the Prime Minister, who is funding pilot schemes for big society youth projects in the summer with people who are not qualified in youth training?

[Angie Bray]

I am happy to take that point on board, but I am going to make progress.

The spending decisions that I mentioned are clearly not the priorities in which the people of Ealing are interested, and they really ought to be reconsidered. Unfortunately, I suspect that politics has played a large part in them. They were entirely avoidable, but the council hoped to make the coalition Government take the blame. I expect the public to be a little cleverer than that. They know, as we all do, that we are in a black financial hole because of the previous Labour Government, and my constituents will not be impressed by poor spending decisions that allow day care centres to be closed or park rangers to lose their jobs while full-time trade union officials are kept in cushy jobs in which they do nothing to support the local community. I will oppose the motion.