Local Government Funding Debate

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Local Government Funding

Heather Wheeler Excerpts
Monday 6th December 2010

(13 years, 5 months ago)

Commons Chamber
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Heather Wheeler Portrait Heather Wheeler (South Derbyshire) (Con)
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I declare an interest, because I am still a councillor on South Derbyshire district council and am married to the new council leader. I was leader myself for three years, and was previously a councillor there for 15 years—it seems to be a popular choice. Prior to that, for four years, I was a councillor on Wandsworth council. My antecedents in local government are strong and long. I have an abiding love for it.

I am appalled at tonight’s debate. It is astonishing that yet again we have hour after hour of prime television in which all the Labour lot do is scaremonger—it is hour in, hour out. There is no substance to what they say, because of the appalling way Labour councils have run areas year after year. They have never considered value for money for their taxpayers.

Tom Blenkinsop Portrait Tom Blenkinsop
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By the sound of it, the hon. Lady has a great record in local government in South Derbyshire, so she will be aware of the Gershon savings over the past five years, under which 3% to 5% of council tax spending was looked at in terms of savings across the board. In my area, that has led to significant savings over the past five years.

Heather Wheeler Portrait Heather Wheeler
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Of course, I know about the Gershon savings. I also remember the squeals about it and the synthetic savings that were made. The opportunity was not taken to look root and branch at what local councils need to do and should do, at the way they should do it and at the value for money they provide for their residents. It is hugely important that people take an innovative look at the way in which local councils work, and that they take this opportunity. The whole country is in a financial crisis, and nobody should be in position where they do not have to take their percentage of it. That would be completely wrong.

The new coalition Government are going to look at the floors and ceilings, the caps, the huge amount of ridiculous comprehensive area assessment-type targets, and the millions of pounds that all our councils have had to spend on this sort of thing. This coalition Government are about freeing people up to organise themselves in such a way that they provide the vital services that their people want at the same time as having the guts to say, “We don’t want to do that any more. We’ll have a referendum on it. Do you agree with us?” In our council in South Derbyshire, 1% on the rates raises £50,000. Given the floors and ceilings that I have had to put up with for the past 13 years of the Labour Government, we have easily lost £2 million there. The same goes for the fire authority in Derbyshire, and the police authority as well.

Lord Watts Portrait Mr Watts
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May I inform the hon. Lady that those floors were introduced to protect her local authority? Local authorities such as St Helens should have received a far bigger grant allocation every year, but we did not put right what the previous Tory Government had done, which was to take money from the most deprived parts of the community and give it to the most affluent parts.

Heather Wheeler Portrait Heather Wheeler
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That is a really interesting point. All I know is that I have lost £2 million in South Derbyshire. I do not know whether it should have been £2.5 million or £0.5 million; I know that I lost £2 million.

Lord Barwell Portrait Gavin Barwell
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I should just like to put the record straight, following that previous intervention. According to the House of Commons Library, two of the local authorities that did worst, along with my own council, over the past five years under the previous Labour Government were Newcastle upon Tyne and Liverpool.

Heather Wheeler Portrait Heather Wheeler
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That was a very helpful intervention. Fortunately, someone has some facts at their fingertips, rather than the usual pure emotion.

Lord Watts Portrait Mr Watts
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The hon. Lady and the hon. Member for Croydon Central (Gavin Barwell) need to understand the amount of money that has gone into Liverpool. Under the Labour Administration, many millions of pounds went into the regeneration of the city. The Labour Government had a good record on Liverpool city council.

Heather Wheeler Portrait Heather Wheeler
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What an amazing situation. We are completely blind to the reality of what has been going on. The ratepayers of South Derbyshire also know about how much money comes in. They were used to council tax rises of 9%, 13% and 17%, which was absolutely outrageous for hard-working families. It was completely ridiculous. We were left to fend for ourselves, and it just was not good enough.

The new localism Bill, and the new arrangements for the rate support grant, will have a major effect on what we do. We will be able to do away with the horrendous top-down targets that our accountancy and finance staff used to spend hundreds of hours dealing with. All of that will be swept away, and thank goodness for that. I am really looking forward to the announcements just before Christmas. There is one more Christmas present that the Minister can give me, relating to Gypsies and Travellers, but we can talk about that another time. We have had to put up with scaremongering for the last however many hours, and the debate is to go on until 10 o’clock, apparently, so goodness knows what else the Opposition will come up with.

Tom Blenkinsop Portrait Tom Blenkinsop
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Those were not my words that I mentioned earlier; they were the words of Ken Lupton, the Conservative leader of Stockton borough council. He has said that the proposals were wrong.

--- Later in debate ---
Heather Wheeler Portrait Heather Wheeler
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If the hon. Gentleman would like to phone me later, I will sort him out.

It really takes the biscuit that we can sit here, having had 13 years of local government being raped by top-down targets, London telling us how we have to do stuff, ignoring local priorities and spending hour after hour on a meaningless load of nonsense including having different languages printed on council papers all the time—

Heather Wheeler Portrait Heather Wheeler
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No, I think that I have given way enough. It is a delight to hear the hon. Gentleman, but perhaps another time.

I am really pleased that the Ministers have given robust answers from the Dispatch Box, and I look forward to hearing some quieter comments later on, along with some apologies from the Labour party for what we have had to put up with for the past 13 years.

--- Later in debate ---
Heather Wheeler Portrait Heather Wheeler
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We have done exactly that in South Derbyshire. We have got into a grouping with Northgate and we will be the east midlands hub, so if hon. Members want to save money and pay us to do their housing benefit, we will do it for them.

Bob Blackman Portrait Bob Blackman
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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.