Local Government Financing Debate

Full Debate: Read Full Debate

Local Government Financing

Dan Rogerson Excerpts
Tuesday 29th June 2010

(13 years, 10 months ago)

Commons Chamber
Read Full debate Read Hansard Text
Angela Smith Portrait Angela Smith (Penistone and Stocksbridge) (Lab)
- Hansard - - - Excerpts

This is the first opportunity I have had to congratulate you on your appointment, Mr Deputy Speaker. I congratulate also the hon. Members for Wolverhampton South West (Paul Uppal) and for Dudley South (Chris Kelly) on their confident and assured maiden speeches. I wanted to find something in common with them and my constituency, and I noted that they both support Wolverhampton Wanderers, who are managed by Mick McCarthy. He is a Barnsley lad, and I now represent a part of Barnsley—I say that in case people are not aware of where Penistone is. Mick McCarthy is known to frequent a wonderful Indian restaurant in my constituency, the Dil Raj, in Dodworth, so there is the connection, and one of which I am proud.

I, like many hon. Friends, have a background in local government. I was a councillor in Sheffield for almost 10 years, and if I learned anything in that time it was that local government is absolutely vital to the smooth, coherent running of our society. Without it, our way of life would soon deteriorate, with all our constituents suffering the consequences. However, I must tell hon. Members what the coalition Government seem intent on doing, because we now know what the big society means. It means looking after oneself and doing things for oneself; it means, “I’m all right, Jack”. Potentially and most worryingly, it means an erosion of the principle of democratic, elected accountability for the delivery of local services. That approach is based on an ideological belief in the small state; it is not the “needs must” approach that Government Members have touted in recent weeks.

My constituency straddles two metropolitan boroughs in south Yorkshire, Barnsley and Sheffield. Both have every reason to remember the last time the Tories were in government, as they suffered deeply from the unfair cuts that were imposed on south Yorkshire local authorities. Judging by the cuts that the Department for Communities and Local Government has already announced, it looks as if they have much to fear this time around. It is not as if they are poor, inefficient authorities; they are not. Barnsley metropolitan borough council is renowned for the quality of its leadership and its efficient use of resources, and for having one of the best leaders in local government, Steve Houghton. Recently, through careful financial planning, it managed to freeze council tax for old-age pensioners and to give the under-16s not only free swimming but free bus passes. I applaud Barnsley on that achievement, which is now under threat.

Sheffield city council’s efficiency has been praised for many years, or at least it was when it was Labour controlled. The Audit Commission awarded it four stars on many occasions, and, although it is right that local authorities should be as efficient as possible, the recently announced £1.65 billion of cuts to local authorities will have significant detrimental impacts on services, especially in places such as Barnsley and Sheffield. More worryingly, it very much looks as if metropolitan authorities are being asked to take a larger share of the cuts, with a reduction of £12.22 per head in those areas, compared with an average of £8.75 for English authorities as a whole. If any Government Member can tell me what is fair about that, I will be incredibly impressed. I do not think that they can.

Further analysis shows that cuts have been made disproportionately in some of the most deprived areas in the country. For instance, Blackburn is ranked at No. 5 on the scale of multiple deprivation and it sees a cut of 1.7%. Meanwhile, Calderdale, ranked at No. 107 on the scale, suffers a 0.6% cut—less than half that suffered by Blackburn. Interestingly, while shire councils see only a small cut of 0.3% in their budgets, the mets are cut, on average, by 0.9%. The right hon. Member for Tatton (Mr Osborne) says that we are all in this together, but yet again it seems that some are in it more than others. In typical Tory style, it seems that those with the least are being asked to pay the price for Tory ideology.

How will people’s lives be affected by the cuts already announced and those that will come later? In a report to be published shortly, the New Local Government Network concludes that many chief executives are saying that libraries, sports centres and street cleaning will be particularly vulnerable. Those of us with a background in local government know that all too well—we remember the last time around.

We hear from the Government Benches about the glories of decentralisation, but let me remind Government Members that in 1995 Sheffield set the budget that it wanted to set, to avoid cuts to libraries and street cleaning. It was told by the Tory Government of the time to go back and reset the budget in June that year; the budget was declared illegal. That is not what I call decentralisation.

Dan Rogerson Portrait Dan Rogerson (North Cornwall) (LD)
- Hansard - -

I hear the issues that the hon. Lady has raised, particularly on behalf of the metropolitan borough that she represents. However, does she recall her Government voting for capping motions in the last Parliament, to cap police authorities and other authorities, which were subject to her Government’s decisions to restrict the rates that they wanted to set in their areas?

Angela Smith Portrait Angela Smith
- Hansard - - - Excerpts

I do indeed remember the capping. I am with my hon. Friend the Member for Sheffield South East (Mr Betts) on this: I do not believe that capping is right. However, the situation in 1995 was incredibly desperate. By that time, we had suffered 15 or 16 years of year-on-year cuts. In the mid-1990s, there was less cash for the housing budget, in real terms, than we had had in 1979. By the time Labour came to power in ’97, there was a backlog of £1 billion in the housing budget.

I accept criticism of Labour’s record on affordable housing and new housing; I think that the previous Minister for Housing accepted it. But we had a massive backlog of disinvestment to deal with.