Local Government Funding

James Cartlidge Excerpts
Wednesday 28th March 2018

(6 years, 1 month ago)

Commons Chamber
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Wera Hobhouse Portrait Wera Hobhouse
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I apologise, Madam Deputy Speaker. Those on the Government Benches should understand what we are doing to our local services. They must have constituents coming to their surgeries—

Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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Order. That is a very long intervention. I call Andrew Gwynne.

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Emma Hardy Portrait Emma Hardy
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One of the issues facing our schools is the number of children attending who are not classified as school-ready. There are increased numbers of children with oracy problems and children starting school who are not toilet trained, which increases the impact on our schools’ resources.

Emma Hardy Portrait Emma Hardy
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That is because of the lack of support for children from health visitors and Sure Start services. Does my hon. Friend not think it is time for the Government to reverse those cuts if they are genuinely committed to giving every child the best possible start? Or can only children from families with the money to pay for it have the best possible start?

Andrew Gwynne Portrait Andrew Gwynne
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My hon. Friend is absolutely right, and that is the short-term approach of this Government and their predecessor, the coalition. However, making short-term savings in a particular year has resulted in massive cost and demand increases further down.

Andrew Gwynne Portrait Andrew Gwynne
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I will give way to the hon. Gentleman, as he keeps trying to intervene on interventions.

James Cartlidge Portrait James Cartlidge
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When interventions transmute into speeches, some of us get a little frustrated. The point is that difficult decisions had to be made when in 2010, we were faced with the highest budget deficit since the war. The hon. Gentleman is effectively saying that we should have protected the Department for Communities and Local Government budget, just as we chose to protect the NHS. What taxes would he have increased or what other Departments would he have cut to pay for that?

Andrew Gwynne Portrait Andrew Gwynne
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I will take no lectures from a Member who voted to cut the bank levy by £5 billion. I politely point him towards the “Grey Book”, which we published with our manifesto, “For the many, not the few”—I am sure it is well thumbed on the Government Benches. In our manifesto we pledged to give, this year and every year, an additional £1.5 billion for local councils and where we—[Interruption.]

Andrew Gwynne Portrait Andrew Gwynne
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The Secretary of State says he will tell me. I am glad that he is looking into Labour policy development. Perhaps he ought to consider his own policy development on these matters, because the Government are so woefully lacking in any such proposals. Our proposal was fully costed, with £500 million for early years, £8 billion for social care—

Andrew Gwynne Portrait Andrew Gwynne
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I will not give way again, because I am answering the hon. Gentleman’s question. What we proposed, when put together, is a far better deal for our children, our elderly and our councils than what the Conservatives have been able to come forward with.

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Andrew Gwynne Portrait Andrew Gwynne
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My hon. Friend makes a really important point. I will come to some of those issues later, but her point is very well made, because we have not only seen the hollowing out of our local services. We have also seen the impact of that on local government as a whole.

I know that is an inconvenient truth for Ministers, and I am sure that when the Secretary of State responds, with his pre-prepared speech, he will say that I am making overtly political points. That seems to be his stock answer. He seems to forget that it is the job of the Opposition to point out the Government’s failings, of which there are many in local government policy. However, it is not just the Labour party saying this; it is the National Audit Office. Surely the Government recognise the National Audit Office as a reputable organisation that knows what it is talking about. The NAO has told us what the Government’s policies mean. They mean that one in 10 councils with social care obligations will have exhausted their reserves within the next three years. They mean that the Government’s short-term fixes are not working and that local government still has no idea how its finances will work after 2020. It is about the cost of negligence being paid for by communities across the country. Vital services are cut, and because the Government shift the blame on to local councils, giving them so-called flexibility but then criticising them when they use it, council tax bills are increasing.

Planning and development, the National Audit Office has shown, has been cut by 52.8%. If we are to meet the Government’s ambitious targets for new homes, who will be the planners of the future? Who will identify the land to be built on? Who will process the planning applications? Who will be the enforcement officers to ensure that the homes and other buildings are built in accordance with the plans?

Funding for transport has been cut by 37.1%. These are our bus routes. These are the vital links between our communities. These are our roads, our pavements, our cycleways. I note that Conservative Members are now silent about that.

Andrew Gwynne Portrait Andrew Gwynne
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I will give way to the hon. Gentleman.

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James Cartlidge Portrait James Cartlidge
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It is extremely kind of the hon. Gentleman to give way, but it must be said that he is continuing the same argument. When we had the deficit, we chose to protect the NHS and had to make other difficult choices. He is effectively saying that Labour would have protected the budget of the Department for Communities and Local Government. He must therefore tell us what other budgets he would have cut, or what taxes he would have increased, to pay for that protection.

Andrew Gwynne Portrait Andrew Gwynne
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I think that people listening to the hon. Gentleman’s intervention will find it hard to believe that he protected the NHS, for a start. However, I am glad that he has intervened on the issue of transport. It is rather ironic that he has come here and said that we would want to protect local government. He is damn right we want to protect local government, but so does his Defence Secretary. His Defence Secretary took to Twitter a couple of weeks ago decrying the fact that Conservative-controlled Staffordshire County Council was removing bus services from his constituency—the same Defence Secretary who voted for the cuts in this place.

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Sajid Javid Portrait Sajid Javid
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My hon. Friend makes an excellent point. We saw the same again recently on the cut in stamp duty; Labour talks about helping people to buy their first home, yet it voted against a cut in stamp duty. There are many such examples and it is incumbent on all of us in this House to make sure we know what Labour really stands for.

The settlement comes in the third year of a four-year deal that was accepted by 97% of councils in return for publishing efficiency plans. As I said earlier, many councils have made the most of the certainty and stability this offers to plan ahead and drive commendable efficiencies. We will continue to work with the sector to not just deliver better value for money, but really transform services. In all, this settlement answers calls from councils, over many years, for greater control over the money they raise and the tools to make this money go further. This is the approach we have taken across the board: listening to local authorities and responding to what we hear.

James Cartlidge Portrait James Cartlidge
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On greater control, in Suffolk we are very pleased to be one of the 10 pilot areas for the 100% retention of business rates. Has my right hon. Friend given any consideration to allowing councils to set the level of business rates?