Graham P Jones
Main Page: Graham P Jones (Labour - Hyndburn)(13 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text
Caroline Flint
I would rather defend an increase, no matter how small, than defend the indefensible, as is happening here today.
Let us look at the disparities. As I have said, a number of councils, including Burnley, are facing the most devastating cuts. At the same time, a handful of district councils in the south-east, including South Cambridgeshire and West Oxfordshire—two of the least deprived areas in the country—could see not a reduction but an increase of up to 30% in their funding, as a consequence of funding that was previously ring-fenced for deprived authorities being rolled into the overall grant.
Graham Jones (Hyndburn) (Lab)
I am delighted that my right hon. Friend has managed to give way. She mentioned Burnley, the neighbouring constituency to my own. Housing market renewal worth £9 million to Burnley and £8 million to Hyndburn has just been cut, and the working neighbourhoods fund, which is worth £2 million, has also been slashed. Burnley borough council has been funded in the past two or three years by enormous sums from the Government, as has Hyndburn, and I do not accept the point made by my colleague, the hon. Member for Burnley (Gordon Birtwistle).
Caroline Flint
It is always helpful to have a wider debate, and I thank my hon. Friend for that contribution.
James Morris
They will need to make clear arguments to the Department for Business, Innovation and Skills and the Department for Communities and Local Government about why there should be a local enterprise partnership. However, local politicians should be arguing in favour of making applications to the regional growth fund because, even outside the LEPs, businesses, the voluntary sector and local authorities can make applications to the regional growth fund.
Local authorities will now be given back responsibility from central Government to start making real decisions about how they spend their money. As the Secretary of State said, the Government have freed up, or un-ring-fenced, grants worth £7 billion from 2011-12 onwards, which the Local Government Association described as
“an important move towards a simpler funding mechanism that will help councils do their job”.
However, that should be only the beginning. There is huge scope for the introduction of other levels of financial innovation in local government. For example, hon. Members have talked about the potential productive use of tax increment financing. This lack of ring-fencing, this devolution of financial autonomy to local government, should be only the beginning. We also need a systemic reform of the services delivered and a re-evaluation of how local people can influence the way services are run. This transformation, with the coming presentation of the localism and decentralisation Bill, is at the heart of Government policy. A bottom-up approach to service provision is vital.
Graham Jones
Does the hon. Gentleman agree that a bottom-up process involves cost, and local authorities are worried now that such a process, which he has suggested, will double the pain following the cuts in the comprehensive spending review?
James Morris
Over the past 13 years, as I said, we have had centralised policy dictated from Whitehall. At a difficult time for local government, it is even more important that we invert that pyramid and have a bottom-up decision-making process in which local government can take more control of its decision making.
Brandon Lewis (Great Yarmouth) (Con)
Our residents across this country have been losing interest in local government for years. Turnout in local elections, and particularly local government by-elections, shows that many people are not interested. From speaking to residents, I have learned that the biggest reason for that is that over the past 10 years and more councillors have often, rightly, said that they cannot deal with a given issue because it is under central Government control.
It has already been said in our debate that the previous Government gave money but it always had strings attached. That was the problem. During the 11 years I spent as a councillor and council leader while a Labour Government were in office, my experience was never that we had plenty of money or that we could ever do things without strings attached. Every single time we looked at doing something for our residents, we had to go through some aspect of the tick-box culture. There had to be a consultation on a proposal, for instance, even if that proposal had been in the local election manifesto, or we had to do something differently to make sure that we kept one quango or another or the Audit Commission happy, because officers’ views were often that if we did not do so, we would be punished somewhere else, with a different grant being cut or changed in a different area.
I agree with my hon. Friend the Member for South Derbyshire (Heather Wheeler) that a key problem is the stranglehold that has been put on local government for years. I also agree that the fact that the previous Government held local government to ransom over their finances made it almost impossible for local councils to say that they were able to do very much directly for their local residents, even in areas where they were not struggling. That was because they were having to find money to cover bus passes, swimming pools or licensing. They were also then being handcuffed in respect of planning rules.
It has been a difficult time for local government and I understand why residents have started to switch off and disbelieve what they read in election manifestos. After all, under Government statutory requirements those in local government who were working to an election manifesto would probably still have to consult on any measures afterwards, so what was the point of the manifesto?
I hope that the ending of ring-fencing, the freeing up of local government and the localism Bill when it is introduced will result in councils being able to go back to concentrating on actually delivering for residents, instead of ticking these boxes, which are so often caught up with a financial string. If that happens, elections will actually matter again and people can believe that when they vote for a councillor and a party in a local election, that party can deliver on its manifesto. People will be able to expect to have local manifestos on which they can hold the party and council to account, rather than just always being fobbed off with, “We can’t do that, we are restricted on this, or there’s got to be consultation on that.” That is a huge issue for local government. I sometimes think back to my time as a councillor and the amount of officer time that was spent on ticking these boxes and on putting bids together for money we may or may not get, depending on which box we tick.
Brandon Lewis
I am talking about a whole range of funds across the board. We would have officers spending a huge amount of time on every single matter. That was even the case in respect of initiatives like the comprehensive performance assessment. The sums involved would be up to £250,000 a year. If we added up the amount of officer time spent in that way, we would find that local government could save a huge amount of money. I know that from speaking to my local authority in Great Yarmouth. I am proud to be able to say that, when the announcements were made earlier in the summer, our managing director and councillors said, “We can deal with this.” We were one of the hardest hit local authorities, but they felt they could deal with it. They are now, rightly, looking at how they might share services.
One of the problems we had with the previous Government was their approach. They had to have estimates—even for unitary government. We debated that topic in the Chamber just a couple of weeks ago. The argument was that there could be a couple of million pounds a year in savings from having unitary authorities for Norfolk and Exeter, but one of the problems in respect of Norfolk was that we would still keep the county council and all the councils we had, and just convert one city council to a unitary. I would, therefore, still dispute whether there would have been any saving in officer money and time from moving to unitary status. However, the previous Government wanted to do that in the belief there might be savings down the line, when in fact what we are now seeing in Norfolk is authorities coming together to look at how they can share services, both county with borough and district councils and district councils across each other.
We are considering some of the savings that have to be made and—as other Members have commented—the salaries earned by some people in senior management in local authorities. We should also consider sharing services and focusing on local accountability, with members representing their residents. It should not be based on where a person’s office might be or whether they work in one, two or three authorities. They are there to deliver a service, not tick a box for Government. If we were to do that, we could start seeing huge savings across the board.
The key is getting back to what local authorities are for. I fully support the Government’s position and will be voting against the motion because it harks back to the bad days of the past 10 or 15 years when Government held local government at arm’s length but were then able to blame it for being unable to deliver because, as Labour Members have already mentioned, there were strings attached. Instead, we should set councils free and give them power not to be ring-fenced and to make their own decisions. That will make them more accountable—transparency is a huge part of this. People will then understand that their local authority is the authority responsible for specific areas, that it has the power to deliver and that it is accountable at an election, which is really what democracy is about. That would be a big step forward for local government.
I know that other Members are keen to speak, so I am happy to conclude on that point.
Bob Blackman (Harrow East) (Con)
It is an honour to follow such a thoughtful speech as that made by the hon. Member for Mitcham and Morden (Siobhain McDonagh). Before I came to the House, I spent some 24 years in local government—20 years as leader of my group, 10 years setting budgets and 10 years proposing opposition budgets. Throughout that time, I gained a great insight into how local government finance works and has worked over many years under different Administrations.
We should remember that in that context, local authorities have, over the past three years, faced 3.5% reductions, or efficiency savings, forced on them by the then Labour Government. In London, some 23 of the 32 local authorities have been on the floor of the settlements. For the past three years, therefore, they have always had below-inflation increases. If education is stripped from those budgets, they show a real-terms reduction in funding in London over the past three years. Pretensions that local government saw its halcyon days under the Labour Government are, I am afraid, completely false. We need to put them properly in their place.
We must also consider the proposals made by the Labour Government at the time and what local authorities anticipated if Labour had won the general election. We know that they would have halved capital expenditure, and this Government are preserving capital expenditure and ensuring that there is investment for our future. That is critical for the whole ambit of local authorities and all public sector authorities.
We also must consider what local authorities now have to administer. The budget for which I was responsible in the London borough of Brent was some £1 billion, but we only had discretion over £250,000 of it. The rest was passed from central Government to the local services without any interference or control by the local authority whatsoever. We need to recognise those changes.
Graham Jones
Is that not precisely what is happening when the Government announce that they are ring-fencing education funding? Is that not just a repeat of what the hon. Gentleman has just described?
Bob Blackman
Clearly, the Government are removing artificial ring-fencing from local government expenditures. Local authorities up and down the country rightly complain about having been given money in very tightly constricted salvos that could be spent only on particular services in particular ways. Often, they could not spend it within the given time frame and so would lose it. That is ridiculous.
We need to look at how money can be saved. There is multiple handling of cases in local authorities. I know of social services cases in which the application for disabled facilities grants has gone through 17 pairs of hands before being approved. What nonsense. We have to streamline systems to ensure that, at most, one person reviews a case and another checks that it is correct. Applications should not go through 17 people.
We should have computer systems that capture data once. People who apply to a local authority for particular services frequently have to fill out a multitude of forms and the relevant information then has to be entered many times by various people in different areas.
Bob Blackman
I thank my hon. Friend for taking this opportunity to advertise the hub that she is involved in.
Clearly, we need smarter procurement in local government. It almost makes me spit when tenders for local government services come back with visibly inflated prices because they are for public, rather than private, services. Many of the tenders for public services that come back would not be accepted by any private service. We need to examine that carefully.
We also need to create an environment in which there is greater opportunity for mutualisation. One thing I did in local government was to create a local authority mutual insurance operation for London. It would have saved my authority and every authority that joined it £1 million a year, but it was deemed to be illegal so we could not operate it. I ask Government Front Benchers to change the position so that local authorities can come together to save money for local residents and also provide much better services.
We should consider what unused assets local authorities have. An awful lot of land could be sold in appropriate ways and the money could be used for appropriate reinvestment in the local area. We also need to consider local authority balances. Some authorities have sums of money sitting totally unused instead of benefiting the public, whereas other authorities have very small balances and will find the reductions much more painful. Many authorities need to examine their conscience and use those resources to benefit local people.
Everyone knew that the cuts were coming. Everyone knew that there needed to be a plan. In the authority on which I served before I came to the House, we had a plan to reduce our expenditure by £100 million over four years—that is, £25 million or 10% a year. If we could do it without a huge impact on public services, I do not believe there is any authority in the country that could not do it.
Bob Blackman
No, I shall not give way as I do not have much time. [Interruption.] No. I have been given the extra time already.
The borough that I have the privilege of representing now also has a plan to save some 10% of its expenditure per year, and the plan is ready to go, depending on the settlement. Clearly, as my hon. Friend the Member for Croydon Central (Gavin Barwell) mentioned, there are wide disparities in the formula grant that authorities are given. That is the key issue that the Government must address to make the system fairer, more transparent and more open, so that we can all examine it and make sure that the right resources are going to the right authorities.
Heidi Alexander
I should like to make progress as I am conscious of the time.
The demonstrations at Lewisham council last week did not take place because that is a Labour council intent upon slashing services or haemorrhaging staff. The demonstrations at Lewisham last week were a direct result of a Tory-Liberal Government determined to cripple councils the length and breadth of the country. I first learned about the riots last Monday when I was on my way home from Westminster. As I sat on the train, I could not help but reflect upon how unfair it was that former colleagues of mine were being blamed for the Government’s decision to inflict cuts that go well beyond anything that is sensible or necessary, and well beyond anything that my party would have done, had we been in power.
As I sat on the train, I also realised that at the exact time that council employees in Lewisham were trying to hold back an angry mob, hon. Members in this Chamber were debating reform of the banking system. For me, the two are not separate issues. Local democracy is rightly accountable for the decisions that it takes, but surely we have to ask: where are the protests outside the plush offices of the bankers whose excessive risk taking plunged us all into this crisis in the first place? For that matter, where are the protests outside the office of the Secretary of State, whose failure to stand up for his Department has forced Lewisham council into its present position?
I am not for one minute suggesting that the violent protests in Lewisham should be replicated anywhere, but surely those responsible for the current financial state of local government should be made aware of the effects that their actions are having on communities throughout the country.
There’s the rub: for me, the Government do not get it. They do not seem to get the fact that by heaping cuts on local authorities, they run the risk of putting thousands upon thousands of people out of work. Ministers do not seem to understand that draconian cuts to local government will simply take work away from private firms—the very firms that they are desperately trying to grow. Nor do Ministers seem to understand that the scale of the cuts could decimate voluntary and community organisations at the precise moment when they want them to do more. Most worryingly for me, there seems to be no acknowledgement that the size and speed of the cuts could force councils to dismantle the services on which the most vulnerable members of our society depend.
Heidi Alexander
I would very much like to make some progress, and I am conscious that there is a time limit.
My hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) spoke earlier about elderly care, on which I, too, would like to focus for a few minutes. I have been reprimanded by the Secretary of State in this Chamber before for daring to suggest that the supposedly extra money for adult social care announced in the comprehensive spending review would be wiped out by the cuts to local government. Well, let me tell the Minister today that there are many authorities that share my concern. In fact, a recent report by London Councils estimates that even with the “extra” £2 billion announced in the CSR, funding for adult social care will fall by £1.8 billion over the next four years. During my time as a councillor, the worst meetings that I had to attend were those at which we considered changing the eligibility criteria for care packages—the threshold of need that the elderly and those living with disabilities have to meet to get support. In the end, we did not raise the threshold in Lewisham, and I am pleased that we did not do so. It came down to a question of human dignity, and I was proud to be part of a Labour council that recognised that.
However, with the current scale of cuts facing local government and the demand for care increasing by the day, I cannot see how much longer councils will be able to maintain the level of support that they currently provide. If they do maintain current levels of care, other council services will have to take a big hit. They include libraries, leisure centres, recycling facilities and street sweeping—many of the things that people take for granted. Does the Minister realise that those are the sorts of impossible decisions that he is asking council leaders to take?
I accept that in many areas there may be ways of doing things differently—doing things more cheaply and doing them better—and that is precisely what good, forward-thinking councils have been doing over the past few years. My concern about the Government’s approach to local government is that it seems to be based on a mistaken belief that councils are characterised by rampant profligacy, sky-high salaries, and hundreds and hundreds of non-jobs. Nothing could be further from the truth. My experience tells me that, year after year, many councils have been working hard to make themselves more efficient, the result being that there is now simply not much fat left to trim. The way in which cuts are being disproportionately squeezed into next year—although we hope we might get some good news on that—will also make it harder for councils to take the sensible, long-term strategic decisions that are needed.
My concern about the scale of the cuts to local government is that it will limit the ability of councils to address some of the big issues of our time, and restrict the innovative work that some modern, progressive councils are already undertaking. Let us take climate change. Although new forms of electricity generation and more energy-efficient homes may help to reduce our carbon emissions, some of the really big differences will come about only by people changing their behaviour. That does not happen by magic, and although Ministers might be concerned that this smacks of the nanny state, I cannot help but think that it is local government that is best placed to assist communities in reducing their carbon footprints. However, that type of work is resource-intensive, and with resources so much scarcer, councils will have to stop doing other things if they want to continue such work.
In conclusion, I believe that the scale and speed of cuts to local government is part of a deliberate strategy by Ministers to shift the really difficult decisions on to someone else. It is an attempt to deflect attention away from themselves and on to council leaders up and down the country. To give Ministers their due, as a political strategy you cannot knock it, Mr Deputy Speaker, but as a strategy to reduce the country’s deficit fairly and sensibly, it is nothing short of a disgrace.
Graham Jones (Hyndburn) (Lab)
Given the short amount of time left, I shall raise just a few brief points. I want to mention the new homes bonus, a suggestion that could save money, the big society, and residualisation in east Lancashire, which is an important issue in my constituency. I also want briefly to touch on police community support officers.
My constituency is suffering some of the biggest cuts. We are facing 27% cuts across the board, but we are waiting for the actual figures. I am surprised that the Minister will not confirm those figures today. My hon. Friend the Member for St Helens North (Mr Watts), who is no longer in his place, mentioned a report produced by the all-party parliamentary group on the special interest group of municipal authorities—SIGOMA. It stated that Hyndburn was ranked as the 40th most seriously hit area, facing between 30% and 38% cuts. These can have a cumulative effect, and similar examples have been raised by other Members today.
The new homes bonus is frequently used by Ministers as a method by which councils can run for financial sanctuary, but it will have no impact on constituencies such as mine, where there are some 2,500 empty properties. Netting off demolitions will hit hard any areas where there is an over-supply of housing. This policy is a bit like throwing a drowning man a medicine ball.
Let me make some suggestions. Conservative Members say that we have no suggestions, but my right hon. Friend the Member for Salford and Eccles (Hazel Blears), who is not in her place, suggested more flexible use of the business rates, which the Secretary of State touched on earlier. Let me give him another suggestion. If he stopped scratching his head and listened to me, he might learn a thing or two. Hyndburn council calculated that removing the 50% council tax discount on empty properties will raise £660,000—an enormous sum for a district authority. At the moment, this money is clawed back through the revenue support grant deduction. It needs to be looked at. It is interesting to note that The Independent on Sunday reported that the Liberal Democrats were looking at similar initiatives—discounts and removal—for second homes.
Turning to the big society, it concerns me that the Government believe that we are moving towards such a society. I cannot see it. Let me provide an example. My local authority provides £57,000 for citizens advice bureaux. If we face cuts of between 30% and 38%, I cannot see how that is likely to continue, yet this is a time when citizens advice bureaux will see an increase in the number of people coming to see them. This will mean an increase in the work load at a time when Citizens Advice will be laying off staff. It is also affected by many other streams of direct Government funding, which are also being cut. It is obvious that there are going to be real problems. I do not think that the Conservative council of Hyndburn and Rossendale has an appetite for maintaining such funding. It is going to set a 0% council tax—a big issue, as that is going to hit the big society even harder. Many voluntary groups rely on this funding, and I cannot see how they are going to survive. Thanks to the cuts, we have already lost one dial-a-ride minibus, and I imagine that the disabled service will be removed altogether unless we see some sort of public support.
These huge cuts have a cumulative impact, so there is a growing concern in Pennine Lancashire about what I would describe as the residualisation of poorer communities. Ministers need to be aware of that. Indeed, evidence is now emerging that while populations in these areas remain relatively stable, the number of those in higher-income brackets is declining, along with those who have better education and better employment prospects. This is countered by a growth in the number of poorer, lower-income households and those with lower levels of educational achievement. These populations are, by their nature, often more dependent on public services. We therefore see self-reinforcing patterns starting to build up as a result of these cuts.
This is a crucial issue. The latest rankings for the index of multiple deprivation show that right across Pennine Lancashire, with the exception of Ribble Valley—I notice our Deputy Speaker has left—there has been a marked fall as the effects of residualisation take hold. There are real fears that the outcome will be a “ghettoisation” of parts of east Lancashire and other parts of Britain, thanks to a Government focusing solely on areas that can prosper economically rather than getting to grips with the needs of all communities.
Finally, let me touch on policing. On top of all the other cuts I have mentioned, policing is going to be cut. Police officers in my area believe that, without the extra staff, crime will rise. The police cuts are ill considered. Police community support officers are part-funded by local authorities; they tackle in partnership a wide range of social problems. No assessment seems to have been made of the wider impact of cutting PCSOs in areas where local authorities work in partnerships. I will stop there and allow the Front-Bench teams to conclude the debate.
Joan Ruddock
On a point of order, Mr Speaker. I think you will know that I have been in the House long enough to take the rough and tumble of parliamentary debates, but earlier today, in response to my intervention, the Secretary of State made a remark about an hon. Lady’s “champagne lifestyle”, which appeared to be directed at me. I found that really offensive and rude. Will you advise me, Mr Speaker, on whether I could expect that remark to be withdrawn?