Local Government Best Value: Croydon Council

Jim McMahon Excerpts

Thursday 12th June 2025 Written Statements

[The Minister for Local Government and English Devolution (Jim McMahon)]

As I have previously stated when updating the House, this Government are committed to resetting the relationship between central and regional government, and to establishing partnerships built on mutual respect, genuine collaboration and meaningful engagement. Local councils must be fit, legal and decent, and this Government are taking the action necessary to fix the foundations of local government. I am today updating the House on the steps that we are taking to support the London borough of Croydon to recover and reform.

London borough of Croydon

I am today publishing the latest report of the London borough of Croydon improvement and assurance panel, which I received in April. The report acknowledges and welcomes the hard work of the council’s members and staff and notes that there has been some progress over the course of the intervention, which is due to end on 20 July this year. However, the council’s financial position is deteriorating rapidly and the report documents serious concerns, particularly on the council’s ability to improve, on some aspects of leadership and on the use of resources.

Croydon remains one of the most financially distressed councils in the country. The council’s general fund debt sits at around £1.4 billion and it relies on the allocation of exceptional financial support through in-principle capitalisation directions to balance its budget. The dramatic increase in the council’s £136 million EFS for 2025-26, from £38 million granted for 2024-25, is highly concerning. The council has received approximately £553 million in total EFS since March 2021. This is simply not sustainable.

Failing to change course would condemn Croydon’s residents to a worsening position without an exit strategy. The report sets out that there has been a lack of pace throughout the intervention, but the deteriorating financial position, which is not being gripped and tackled adequately by the council, is reaching a “financial crisis”. The stabilisation plan has been in development since late January, but this does not yet provide a concrete plan to achieve the efficiencies and transformation that the council has committed to. Poor financial information and forecasting and a lack of controls have contributed to the deterioration of the financial position. There is an increasing reliance on Government support to balance the budget, operating costs continue to be “unreasonably high” and the medium-term financial strategy projects the general fund debt to rise to over £1.9 billion by 2029.

The panel documents the council’s ambition to deliver transformation but is concerned that the council will find it “enormously challenging” to deliver the necessary transformation and reduce spending while maintaining day-to-day delivery. The report notes that, based on benchmarking data, the council’s operating costs can be improved to be more in line with other authorities. I have carefully considered the report and other relevant material, including the Local Government Association’s corporate peer challenge. I am satisfied that the London borough of Croydon is failing to comply with its best value duty. I am therefore minded to exercise powers of direction under section 15(5) and 15(6) of the Local Government Act 1999 to implement an intervention package that ensures the council’s compliance with its best value duty.

Proposed package

I am satisfied that the scale of the financial difficulties facing Croydon, the failure of the council to adequately respond to these difficulties and the assurance required moving forward means that a short and sharp reset, with fast action, is required to shift the dial on the council’s recovery. On balance, I believe this is best achieved by escalating the statutory intervention to a commissioner-led model, to ensure that the council can achieve sustained change at the pace needed.

The finalisation and implementation of the council’s stabilisation plan, and in time a recovery plan, will be fundamental to Croydon’s transformation, reform and recovery. Commissioners will have greater scope to challenge and support the council to finalise and implement its stabilisation plan and deliver realistic transformation and savings, in line with what the council has committed to. I envisage the appointment of commissioners until 20 July 2027, with a review of the progress of the intervention after 12 months.

Representations

I am inviting representations from the London borough of Croydon and any other interested parties on the proposed intervention package by Wednesday 25 June.

I will carefully consider all representations before deciding how to proceed. The proposal to intervene is not taken lightly but is designed to strengthen and accelerate improvement to ensure that the council delivers for its residents. With council focus and support from the commissioners, I expect the council to demonstrate swift and sustained progress necessary to ensuring compliance with its best value duty.

Conclusion

I am committed to working in partnership with the London borough of Croydon to provide the necessary support to ensure its compliance with the best value duty and the high standards of governance that local residents and service users expect.

I will deposit in the Library of the House copies of the documents referred to, which are being published on gov.uk today. I will update the House in due course.

[HCWS697]

Oral Answers to Questions

Jim McMahon Excerpts

Monday 9th June 2025 Commons Chamber

[Terry Jermy (South West Norfolk) (Lab)]

21. What steps her Department is taking to ensure that councils in areas with higher levels of deprivation receive adequate funding.

[The Minister for Local Government and English Devolution (Jim McMahon)]

The Government have delivered a settlement that begins to fix the foundations and makes available over £69 billion in 2025-26. In 2026-27, an improved approach will direct funding where it is needed most and provide certainty through the first multi-year settlement in over a decade.

[Amanda Hack]

Leicestershire, alongside other authorities, has been campaigning for fair funding in recent years, following 14 years of poor funding settlements by the last Government, meaning cuts to vital services. A lack of fair funding also means that schools in North West Leicestershire have some of the lowest levels of funding per student in the country. How will the Minister approach a fair funding settlement that considers the unique challenges faced by rural communities?

[Jim McMahon]

I thank my hon. Friend for her work in championing those issues. We are fundamentally reforming how we assess councils’ relative needs and resources, to ensure that funding is distributed to where it is needed most. That includes accounting for councils’ ability to raise resources locally, which the previous Government promised to do but ultimately failed to do in balancing the numbers. Targeting funding in that way will enable councils that have had to scale back services the most to be able to catch up and to ensure that everybody, across the whole of England, is able to access decent public services.

[Natasha Irons]

Despite an increase in council tax of 27% since 2022, £136 million in exceptional financial support this year and brutal cuts to services, Croydon council’s finances remain broken. As an outer-London borough with inner-London problems, Croydon has historically not received the funding it needs to cover the costs for demand-led services like temporary accommodation, so even if Croydon’s debt was wiped out, it would still need exceptional financial support. Will the Minister outline how councils like Croydon will get the resources they need to meet the complex challenges they face and provide the frontline services that our communities deserve?

[Jim McMahon]

The questions that have been raised demonstrate why the fair funding review is needed, and why it has to take into account all the different factors that have an impact on whether councils can provide good public services or not. I appreciate, understand and accept that pressures that were previously felt in inner London are now felt in outer London, and in rural areas too. My hon. Friend will know that in February we provided £136 million in EFS support for Croydon council, and we will continue to work with it. We have met and talked about the issues a number of times, and I know that she understands that those are not small problems to deal with.

[Helen Hayes]

The statutory override to special educational needs and disabilities deficit comes to an end in just 10 months. Without a plan from the Government for the end of the statutory override, more than half of all local education authorities face effective bankruptcy. The need for a resolution to the issue is now long overdue. When does the Minister expect to be able to give local authorities the certainty they need?

[Jim McMahon]

We are laying the groundwork now, ahead of the provisional settlement, which will be the first multi-year settlement in over a decade and will deal with a lot of the structural issues. If it is any help, the Government understand and accept that it is not right or acceptable for councils that have done everything that has been asked of them and provided good public services, particularly for young people, to find themselves at the financial cliff edge as a result. We have an absolute commitment to work through those issues.

[Terry Jermy]

Pockets of deprivation in many rural communities, like my South West Norfolk constituency, are often masked by more affluent surroundings. Will the Minister reassure me that financial support from the Government for local councils in rural areas reflects those concerns about isolated deprivation?

[Jim McMahon]

This month, we are consulting on an updated assessment of need that we will implement from 2026-27. Importantly, that includes the indices of multiple deprivation, a designated national statistic, and it will drill down to deprivation levels of between 400 and 1,200 households in each of those units. Our intention is to address the issues found in the pockets of deprivation in every community, including rural and coastal communities where they are sometimes drowned out because of the sea of affluence around them. It is important that we get to deprivation wherever it exists.

[Julia Lopez (Hornchurch and Upminster) (Con)]

As an outer London borough, Havering has been hugely disadvantaged by a funding formula based on outdated population figures. We heard today that the Mayor of London himself is concerned that this Labour Government will level down London altogether. Will the Minister confirm that the fair funding review will report by this summer—I have been told that previously by a Minister—and will specifically address the disparities between inner and outer London?

[Jim McMahon]

I can absolutely assure the hon. Member that we are working through those issues, and we will consult the sector on them. Given all the variations that we will take into account, I hope Members accept that we have listened. We know that the funding formula is out of date and that for it to stand the test it must apply wherever Members represent, whether in coastal communities, rural communities, inner or outer London or anywhere else in between. I assure the hon. Member that we are getting on with that work.

[Helen Morgan (North Shropshire) (LD)]

Shropshire council’s finances have been left on the brink by 16 years of Conservative administration. It is the largest landlocked county in England, and it is struggling with about 85% of its budget being spent on social care. When the Minister does his fair funding review, will he look at the difficulty and costliness of delivering services over such a wide rural area and ensure that councils such as Shropshire, which has lost its rural services delivery grant, will be able to sustain themselves in the future?

[Jim McMahon]

We made available an additional £5 billion as part of the settlement, and £3.7 billion of that was for social care. We understand the pressures and we are directing money to address them, but we know that this issue will take more than one year to fix. We are on with the fair funding review—the third multi-year settlement in a decade—to begin to fix the foundations. We have definitely heard calls from rural communities and councils to take into account the additional cost for rurality and remoteness, and I assure the hon. Lady that those issues are being looked at.

[Mr Peter Bedford (Mid Leicestershire) (Con)]

One way of ensuring that new unitary authorities such as those for Leicestershire have adequate funding is to base that funding on robust business cases. Given that the Department was five weeks late in providing feedback to the local authorities, will the Minister commit to extending the deadline to ensure that those local authorities have the time that they need to build up those plans?

[Jim McMahon]

In all areas, there is more than adequate time to prepare final proposals. Councils in the devolution priority programme have until September, and all others—the majority—have until November. That is more than adequate time for councils to be able to marshal and get their plans together and make an assessment on that basis.

[Ayoub Khan (Birmingham Perry Barr) (Ind)]

It has been reported that the Birmingham bin strikes may last until December. How can this Government claim to support workers when they refuse to fund Birmingham city council properly? This dispute boils down to cash, yet the Government are failing Birmingham’s bin workers, residents and businesses. The Government backed our steelworkers. Will they back the bin workers with extra funding?

[Jim McMahon]

I hear what the hon. Gentleman says. On the calls that we have with MPs when we update them on these issues, his tone is quite different. We need to separate the rhetoric from the reality. The reality is that for the first time we had £600 million in the recovery grant, which was about those councils suffering high deprivation and historically low tax bases. Birmingham was the biggest beneficiary of that, receiving nearly £40 million.

[Mr Speaker]

I call the shadow Minister.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

The Minister knows from his time at the Local Government Association of the impact that asylum has on the budgets of local authorities. With the Home Office’s much-vaunted increase in the grant rate for asylum claims, the Government are pushing thousands of households on to council waiting lists and shunting millions in costs on to council tax payers. What additional funding and measures does he aim to secure to help to mitigate those costs, which are affecting so many of our local authorities?

[Jim McMahon]

Quite frankly, it is a bit rich for any shadow Minister to critique the current system when the Conservatives deliberately designed it in their 14 years in government. The question is how we go about repairing it. One thing must absolutely be put right; the disjointed system in which different Government Departments work in silos cannot carry on. One of the successes of the leaders’ council is that for, the first time ever, local government leaders are around the table with the Government, including in a meeting with the Home Office and our Department, to work through exactly those issues. That is the change: for the first time, those in local government are being treated as adults.

[Alice Macdonald (Norwich North) (Lab/Co-op)]

T1. If she will make a statement on her departmental responsibilities.

--- Later in debate ---

[Jack Rankin (Windsor) (Con)]

I broadly support unitarisation on a strategic scale, but I am concerned about how historic debts will be treated in Surrey, especially those of Woking and Spelthorne councils. How will those debts be handled as our councils come together, and will the Minister assure my constituents in Virginia Water and Englefield Green, in the well-run borough of Runnymede, that they will not foot the bill for this as part of the reorganisation?

[The Minister for Local Government and English Devolution (Jim McMahon)]

That is one of the reasons why the Surrey arrangement was accelerated. We recognised the lack of balance between the debt liability and the assets and incomes. We also recognised that the unitaries would have to be financially viable, and we are well on track to delivering that, in partnership with the local councils.

[Mr Speaker]

I call the Chair of the Select Committee.

Remote Attendance and Proxy Voting

Jim McMahon Excerpts

Thursday 5th June 2025 Written Statements

[The Minister for Local Government and English Devolution (Jim McMahon)]

Today we have published the Government’s response to our recent consultation on remote attendance and proxy voting in local authorities. The Government have previously set out our intention to reset the relationship between central and local government, and to establish a partnership that delivers better outcomes for the communities we represent. Key to this partnership is providing the sector with support and tools to modernise democratic engagement and make elected roles more accessible for more people.

In-person debate, discussion and the opportunity for residents to engage with their representatives are core aspects of local democracy. At the same time, we know that it is not always possible for elected members to attend local authority meetings in person. The Government response sets out our intention to permit local authorities to meet remotely, and to require them to develop their own remote attendance policies if they do. Local authorities vary in size, location, responsibility and make-up, and we want to ensure that they can develop appropriately responsive policies.

On proxy voting, we plan to require all principal—unitary, upper and second-tier—councils in England to implement proxy voting schemes to provide consistency for members who are absent when they become a new parent, or for serious or long-term illness. We plan for this requirement to apply to meetings of full council. For all other meetings, proxy voting may be used but will not be required, and substitute or pairing schemes may be more appropriate. We plan for other local authorities not listed above to be enabled, but not required, to implement proxy voting schemes for any of their meetings, in the context of member absences for serious or long-term illness or becoming a new parent.

We are keen to reflect feedback from the current make-up of councils, and the demands and requirements we have heard in that process, and to lead the way in opening up elected office for a broader range of candidates, including those of working age, those with caring responsibilities, and those with disabilities or other personal circumstances who would benefit from modernised democratic practices.

We plan to collaboratively develop guidance with the sector on both policies to ensure that they are supportive of members and officers.

We believe that these reforms will improve the experience of elected members serving their communities and encourage more people to consider locally-elected office.

[HCWS684]

Local Government Re-organisation

Jim McMahon Excerpts

Tuesday 3rd June 2025 Written Statements

[The Minister for Local Government and English Devolution (Jim McMahon)]

On 24 March I updated the House on the latest steps on local government reorganisation. This set out the commitment that all areas had shown to reorganising local government in order to achieve sustainable, efficient and streamlined local government for taxpayers. We are shifting power out of Whitehall and delivering strong, sustainable, unitary councils, capable of leading their communities, shaping neighbourhoods and convening local public service providers to improve outcomes for local residents. This is part of the wider project to fix the foundations of local government, and to create a system that is fit, legal and decent, with improvements to audit, finance, standards and structures, complemented by devolution, fair funding and a resetting of the relationship with central Government to gives councils the power they need to get things done.

All 21 two-tier areas produced interim plans with this Government’s commitment to support them, including by giving feedback on interim plans, providing £7.6 million to support the development of final proposals and practical advice and support. I am now updating the House with a summary of the feedback provided to areas, and the proposed allocation and payment of proposal development contributions.

Proposal development contributions

In the statutory guidance I outline my expectation for all local leaders to work collaboratively and proactively by sharing information and data to develop robust and sustainable unitary proposals that benefit the entire area. Ideally, I would like areas to submit their final proposals as a single submission, underpinned by a shared evidence base, that includes all options being put forward by councils.

Consequently, I expect proposal development contributions to support this effort. Each of the 21 areas will receive a flat rate of £135,000, plus an additional 20p per person based on the latest Office for National Statistics population estimates. The allocation is as follows:

Local Government Pension Scheme: Member Benefits Reform

Jim McMahon Excerpts

Thursday 15th May 2025 Written Statements

[The Minister for Local Government and English Devolution (Jim McMahon)]

The local government pension scheme in England and Wales gives 7 million dedicated public servants security in their later years. The majority of its members are women on low-paid roles and often working part-time, with average pensions in retirement of £5,000 a year. These members are at the frontline of public service, working to deliver for the public in our councils, schools, charities, police and fire authorities, and more. This Government are committed to making work pay and ensuring that those who keep our country running are properly rewarded in retirement. That is why we have today launched a consultation that would benefit around 15,000 members, and enhance the benefits open to the women who make up almost three quarters of members, by making maternity leave up to one year automatically pensionable. These proposals all align with the overall aim of ensuring the scheme continues to deliver for members, employers and taxpayers, and invests in their communities.

The Government are proposing the changes to member benefits alongside the significant reforms to investment and pooling, which are also vital. Those reforms aim to improve the long-term sustainability of the local government pension scheme, ensuring that pension promises stretching into the next century are fully funded. The Government propose to do that by strengthening asset pooling in the scheme, improving scheme governance and driving investment in local growth—all those measures ensure that the scheme, in delivering for its members, also delivers for communities.

The members of the local government pension scheme deserve a scheme that rewards their hard work and commitment to public service, and the consultation touches on a wide range of areas of the scheme. There are four proposals I would like to highlight to the House.

First, the proposals would end historical discrimination in the scheme, ensuring that when survivor benefits are calculated when a member dies, there is no discrimination on the basis of the sex of their partner. This would be backdated, correcting the historical underpayment of benefits.

Secondly, the proposals would ensure that there is a better understanding of why individuals opt out of making pension payments. The Government want a secure old age for everyone and, although automatic enrolment in the scheme has increased participation, too many people still opt out and lose the vital benefits the local government pension scheme offers in retirement. This would lay the groundwork for future support of those who feel they cannot afford their pension payments.

Thirdly, the proposals would close loopholes in current rules relating to pension forfeiture, strengthening the framework ensuring that pensions can be removed for serious offences by public servants.

Finally, and most significantly, the proposals would make concrete progress in addressing the gender pension gap. We know that there is still much to understand about the gender pension gap, but it is not fair that, across the scheme, women will on average end their working lives with less generous pension benefits than men. These proposals would see the Government make gender pension gap data reporting statutory and make the last 13 weeks of maternity and shared parental leave automatically pensionable. This would make a real difference in the pension accruals of a significant proportion of the women in the local government pension scheme, and better support them in retirement. The 13-week proposal would be the first time that a public service pension scheme makes this step towards closing the gender pension gap. It reflects that many local government pension scheme members are women in comparatively lower-paid roles, and that the overall package available to the workforce, including pension entitlement, is vital to recruitment and retention of key roles in local public services.

Although these proposals carry costs, those costs are relatively small in the context of overall local government pension scheme liabilities and are significantly outweighed by the difference the proposals will make for members. Further, the Government are mindful that, with the current scheme valuation period, now is the right time for funds and their actuaries to factor these costs into their calculations of future employer contribution rates.

The proposals in the consultation have been tested with stakeholders and address their feedback on how to make the local government pension scheme an exemplar scheme for the public sector and beyond. I want to thank the Local Government Association, the scheme advisory board, local government pension scheme funds and others for their continued support of the Government in our role as steward of the local government pension scheme, and I emphasise the Government’s commitment to the local government pension scheme being locally run.

This first consultation on member benefits in the local government pension scheme will be followed by another consultation this year, on further issues of fairness, equality, integrity and efficacy in the scheme.

[HCWS636]

Churches and Religious Buildings: Communities

Jim McMahon Excerpts

Tuesday 13th May 2025 Westminster Hall

[The Minister for Local Government and English Devolution (Jim McMahon)]

It is a pleasure to serve under your chairmanship, Sir Jeremy. Good morning to everybody in the Chamber. I thank the right hon. Member for Salisbury (John Glen) for securing the debate and the Second Church Estates Commissioner, my hon. Friend the Member for Battersea (Marsha De Cordova), for the significant work that she does.

I will respond to some of the points that hon. Members raised and set out the Government’s position on this topic. Given the subject of the debate, it seems fitting to begin by reflecting on some religious terminology. I understand that among Christian communities it is common to remind one another that, biblically, “church” refers not only to a physical building but to a gathering of people assembled, united by their Christian faith. Nevertheless, for most the word “church” invites images of Christian places of worship, be they the Gothic cathedrals in the shire counties or the churches of all denominations in towns and cities across the country, which were built not just as places of worship but as anchors of the communities they serve. They serve not only the community’s spiritual needs, but its social needs, and many stand in support of the local school, the community hall and more. Many churches, including in my town of Oldham, are buildings of note whose status and heritage have stood for generations.

There are many modern parish churches on estates around the country. Town planners would often draw up the ideal community, with local schools, shops, pubs and, alongside them, places of worship, which were always seen as integral to a thriving community.

We also know that church buildings often welcome through their doors not just Christians, but those of all faiths and none, because they are a wider anchor of the community. That can equally be said of places of worship belonging to other faiths and belief communities, including mosques, synagogues, gurdwaras and temples. The public service and care for their neighbour enacted by faith and belief groups are not just words; they are seen in actions that are often very practical and grounded in the place they live in and represent.

That brings us to the focus of this debate: the importance and impact of religious buildings in communities. There are an estimated 40,300 churches in the UK, according to the National Churches Trust, plus many places of worship belonging to other faiths and beliefs. The invaluable contribution of religious buildings to the built landscape of our nation cannot be overstated. My noble Friend Lord Khan, the Minister for Faith, has made more than 120 visits since last July, including to places of worship, and seen at first hand how they serve their communities.

Only last week, the Minister for Faith spoke at the Shah Jahan mosque in Woking, marking VE Day and the sacrifice of Muslim soldiers in defence of our country. The mosque, built in 1889, is the oldest purpose-built mosque in the country. The Guru Nanak Nishkam Sewak Jatha gurdwara in Birmingham, which the Minister for Faith visited in December, was built in the 1970s, following the arrival of Sikhs from India and East Africa. The Nishkam campus includes not only a place of worship, but a school, a health centre and a social enterprise that serves all members of the local community, regardless of faith.

We have heard numerous examples of how religious buildings are being used to build more compassionate and resilient communities. I can think of a number of churches, mosques and temples in my area that reach out and offer support to the homeless, provide food banks and do an amazing amount of charity work. We have heard about services based in those buildings for older people, younger people and marginalised groups, from food banks and community kitchens to vaccination centres and now modern family hubs. I will add the work that my Department funds through the near neighbours cohesion programme, which often operates out of places of worship, bringing together people from diverse background to collaborate on initiatives that improve their local community.

Sadly, because these buildings matter, they can become the focus of hate for those who seek to sow division in our communities. We saw that in the wake of the tragedies in Southport last summer, when the local mosque became the target of thugs participating in violent disorder. What those criminals did not anticipate was the response of local people, Muslims and many non-Muslims alike, to protect and rebuild that mosque. But protecting religious buildings from violence cannot be just the responsibility of local citizens. The Government are committed to protecting the right of individuals to freely practise their religion at their chosen place of worship, and to ensuring that our streets and communities are safe.

That is particularly important at a time when attacks on synagogues and mosques in the UK, and worldwide, have risen. In 2025-26, up to £50.9 million is available to protect faith communities and their places of worship. That includes £18 million for the Jewish community protective security grant, £29.4 million for the protective security for mosques scheme and for security at Muslim faith schools and £3.5 million for the places of worship and associated faith community centres of all faiths.

We know that those measures, though vital, do not necessarily address the deep-seated issues that lead to the need for such protections in the first place. I am sure we all wish they were not needed at all. That is why my Department is leading the cross-Government effort to develop a longer-term, more strategic approach to community cohesion, working in partnership with communities and local stakeholders, including faith and belief groups, to rebuild, to renew and to address those deep-seated issues.

As part of that ambition, the Government recently announced a plan for neighbourhoods: £1.5 billion to invest in 75 areas over the next decade, highlighting the Government’s commitment to repairing fractured communities, bringing people back together and ensuring that people see a visible difference and improvement in their communities. Local neighbourhood boards will provide a space for community representations, which could include those from faith and belief communities, to help shape how the funding is delivered through their local neighbourhood. That could include discussions on the role of places of worship in serving their local communities.

Religious buildings help to make up not just the physical, but the social fabric of our nation. They are a record of our history, a resource for our present and an asset for the future. That is why this Government have continued to fund the listed places of worship scheme. It was due to the difficult fiscal circumstances that we inherited that the scheme’s budget was reduced to £23 million from April 2025. Despite that, the evidence of previous years suggests that that sum should meet the demand, with 94% applying to the scheme for less than £25,000 and more than 70% applying for less than £5,000.

It is worth noting that there is also a range of support for listed places of worship via DCMS and the Department’s arm’s length bodies. For instance, the National Lottery Heritage Fund has committed to investing around £100 million between 2023 and 2026 to support places of worship. In exceptional circumstances, listed places of worship may also be eligible for Historic England’s heritage at risk funding, and in February DCMS announced an additional £15 million for 2025-26 for this sector.

The Churches Conservation Trust also funds repairs to and maintenance of more than 350 churches in its portfolio. Moreover, town and parish councils are civil local authorities, and in that capacity may choose to support the upkeep of religious buildings, which support the development of other community assets.

In addition to the critical day-to-day work of providing spaces that help to meet the needs of local people, churches and religious buildings also often host events of national commemoration and celebration. Examples include the funeral of Her Late Majesty Queen Elizabeth II, His Majesty the King’s coronation and services of remembrance in every community across the country—moments when religious buildings become sites of history and stir the nation’s collective soul. That has also been movingly evident in the images of St Peter’s basilica in Rome over the last few days and weeks, with great crowds gathering to pay their respects to the late Pope Francis, and scenes of jubilant celebration to mark the election of Pope Leo XIV.

I thank the Members who secured this debate, the right hon. Member for Salisbury and the Second Church Estates Commissioner, my hon. Friend the Member for Battersea, and those who participated in it for providing the opportunity to demonstrate—

[Marsha De Cordova]

I thank the Minister for giving way. He is making a good speech responding to the debate, but I raised three points at the start: making the scheme permanent, prioritising support for those projects that are already under way and looking at a capital fund. Will he respond to those specific points?

[Jim McMahon]

I did my best to outline the range of different funding available to local churches and places of worship; this fund is just one of a number. On my hon. Friend’s particular point about the continuation of the fund, Members will appreciate that any matter of future funding is a matter for the spending review, and every Department across Government will make a submission to that.

[John Glen]

Of course the Minister is absolutely right in what he has just said. However, he will also be very aware that within the budgets he is responsible for, there will be capital underspends in-year, so there will be an opportunity for him to make the case to his Secretary of State and to the Treasury, to say, “Should some of that underspend be allocated to these works in progress—the 260 projects that anticipated a VAT return that they do not have?” I urge him to consider taking that opportunity. It would be a very savvy and politically sensible way of proceeding, and would earn him a lot of credit.

[Jim McMahon]

What I can say is that the passion, enthusiasm and commitment shown by all Members here today in talking about the importance of these places of worship—not only the historical status they give to a place in terms of belonging and sense of pride, but how they act as a community anchor for the future—is absolutely appreciated. Our wider work in terms of the plan for neighbourhoods, with the £1.5 billion that we have announced, and the wider work that we are doing, for example on community ownership, is all part of this process.

In my own constituency, the Holy Rosary Catholic Church, which was built in 1955, has now unfortunately closed. Members might think that a 1955 church would be quite mundane in its feel and architecture, but there is a significant grade II listed memorial in that church, designed by George Mayer-Marton, which is a significant focal point for that community. We are working locally to see how we can marshal funds from different places. I give that as an example of how—as everyone in the Chamber will know from their own communities—there is never just one fund that provides answer to the question; we must blend different funding streams together to make these schemes add up. The importance that Members have given to these local schemes is appreciated and supported by this Government.

To directly address the question from the right hon. Member for Salisbury about capital underspends, we will look at that in the round and across the whole range of interventions that the Government take to support local communities. However, I will certainly take the enthusiasm of this debate back to other Ministers in DCMS and make the point to the Minister for Faith, who I am sure is following today.

In a way, we finish where we started: recognising, through the contributions that Members have made, just how important these buildings are as both places of worship—something that has an important role to play in our society—and as places to convene. They are places for people of all faiths and no faith to get the support they need to live a decent and fulfilled life in their community.

Local Government Best Value

Jim McMahon Excerpts

Thursday 8th May 2025 Written Statements

[The Minister for Local Government and English Devolution (Jim McMahon)]

I have previously updated this House that this Government are committed to reset the relationship between local and regional government, and to establish partnerships built on mutual respect, genuine collaboration and meaningful engagement. Local councils must be fit, legal and decent and this Government are taking the action necessary to fix the foundations of local government and to support the sector to build to strength. Today, I am updating the House on the steps we are taking in partnership to support five councils to recover and reform: Spelthorne borough council, Warrington borough council, Nottingham city council, Cheshire East council and Newham borough council.

Spelthorne Borough Council

On 17 March, I informed the House that I was satisfied, having considered the best value inspection report, that Spelthorne borough council is failing to comply with its best value duty. Inspectors found that the council demonstrated a limited track record in proactively driving meaningful change and effectively implementing external recommendations. I proposed an intervention package to secure the council’s compliance with that duty and asked the council and others to provide representations by 28 March.

I received 12 representations which I considered carefully. I remain satisfied that the council is failing to comply with its best value duty in relation to continuous improvement, leadership, governance, culture and use of resources. I have concluded that it is both necessary and expedient for me to exercise powers in the Local Government Act 1999 as I proposed, with minor amendments. Today, I issued directions under section 15(5) and (6) of the 1999 Act to implement the proposed intervention package.

That intervention package, to be in place until 31 May 2030, comprises four commissioners appointed to exercise specific council functions, alongside specific actions the council is required to take. I am confident that this package will address the failings identified and is necessary for the council to secure compliance with its best value duty.

Given the importance of creating sustainable unitary local government for Surrey, there is a case for urgent and decisive Government action to protect the interests of Spelthorne’s residents and taxpayers, and the public purse. I have therefore appointed the inspection team: Lesley Seary as lead commissioner, and Peter Robinson, Deborah McLaughlin and Mervyn Greer as commissioners, due to their extensive knowledge and experience.

I have issued directions which, in summary, require the council to:

Prepare and agree an improvement and recovery plan within six months and publicly update commissioners on progress after the first three months, six months and thereafter every six months.

Ensure the council has sufficient skills, capabilities and capacity to implement the plan.

With support of commissioners, work with Surrey councils on issues in relation to local government reorganisation in Surrey.

Initiate a full and open recruitment exercise within one month for a suitable permanent appointment to lead the improvement work in the authority and progress against these directions.

Fully co-operate with the commissioners and undertake any exercise of functions that would avoid further failure, in commissioners’ opinion.

The scale of the challenge in Spelthorne means that they must take immediate steps to address their governance, commercial and financial challenges and to make transformative change across its entire operations. Commissioners will be able exercise the following functions:

those associated with the source of Spelthorne’s failures—to strengthen the commercial decision-making, regeneration, property management and procurement functions of the authority;

those associated with delivering financial sustainability by closing any short or long-term budget gaps and reducing the authority’s exceptionally high level of external borrowing;

those associated with any changes needed to the authority’s operating model and transformation of council services to achieve value for money and financial sustainability, taking account of any decisions relating to proposals for unitary local government in Surrey; and

those that will ensure the council has the right skills and structures to make ongoing improvements across the entire organisation—including governance and scrutiny of strategic decisions, and the appointment, dismissal and performance management for senior and statutory officer positions.

The commissioners’ appointments and directions take effect from today. The commissioners will provide their first report in six months, with further reports every six months or as agreed with the commissioners.

As with other statutory interventions led by my Department, the council will meet the costs of the commissioners and provide reasonable amenities and services and administrative support. The fees paid to individuals are published in appointment letters on gov.uk. I am assured this provides value for money given the expertise being brought and the scale of the challenge.

As the council works with other Surrey councils on proposals for sustainable unitary local government for Surrey, creating simpler structures that will deliver the services that local people and businesses need and deserve, the needs of Spelthorne are likely to change throughout this period. Although commissioners will not input into local government reorganisation proposals before submission on 9 May, they will provide their views and oversight for the next stage. I have appointed the commissioners until January 2026: they will provide the requisite oversight, expertise and grip on Spelthorne’s position. I will also review at the appropriate time the directions and the commissioners’ roles, to ensure that Spelthorne has the support required to accelerate recovery and protect the public purse.

As always, I remain committed to working in partnership with Spelthorne borough council to provide whatever support is needed to ensure its compliance with the best value duty.

Warrington Borough Council

Best value inspection report

A capital review of Warrington borough council conducted by the Chartered Institute of Public Finance and Accountancy highlighted concerns around governance and decision making and following this, on 8 May 2024 the then Secretary of State (the right hon. Michael Gove), commissioned an inspection of the council’s compliance with its best value duty. Paul Najsarek was appointed lead inspector and was later joined by Richard Paver and Michael Hainge. The inspectors submitted their report to the Secretary of State, and I am publishing this today. I am grateful to the inspection team for their thorough work, and to the council and all participants for their co-operation.

The report identifies strengths within the council, including within children’s services and public sector partnerships and community engagement. However, it documents serious concerns:

On continuous improvement: The report describes “resistance” in the council’s response to external challenge processes. The inspectors are not confident the council has the “will and capacity” to make the necessary changes without external intervention.

On leadership: The report identifies a lack of strategic direction and “low challenge culture”. The council’s priorities are not aligned with its revenue budget and commercial programme challenges.

On governance: The council’s commercial programme lacks transparency, with key decision-making “disproportionately influenced by a small group of officers”. Despite concerns raised by external bodies, meaningful reforms have not been implemented. The absence of audited accounts since 2018-19 further leaves the council in a precarious position.

On culture: The report highlights that “members are highly respectful of powerful officers and there is a defensiveness to internal and external scrutiny”. This culture has contributed to a high-risk commercial programme, leaving the council “in a very exposed position”.

On use of resources: The council manages a complex, high-risk borrowing and investment programme without a clear strategy or the required expertise. It faces “an increasingly precarious revenue budget position with rapidly diminishing reserves”. The inspectors raise concerns about a potential breach of PWLB guidance.

Compliance with the best value duty

I have carefully considered the report and other relevant material, including the CIPFA review and the Local Government Association’s corporate peer challenge. I am satisfied that Warrington borough council is failing to comply with its best value duty in relation to continuous improvement, governance, leadership, culture, and use of resources. I am therefore minded to exercise powers of direction under section 15(5) and (6) of the 1999 Act to implement an intervention package that ensures the council’s compliance with its best value duty.

The proposed intervention includes the appointment of ministerial envoys who specialise in leadership, governance, finance and commercial investment. This proposal represents a further evolution of our approach as this Government continue to test and learn how best to support councils to recover and reform. As part of our commitment to reset the relationship with local and regional government, I am seeking to develop the “envoy” model, which prioritises building a council’s own capacity to improve, by supporting its recovery primarily with expert advice, rather than taking over functions.

Under this model, my clear expectation is that the council will remain responsible for driving its own improvement with the support, challenge and advice from the ministerial envoys. To safeguard the process, some envoys will have power to exercise certain and limited functions to be treated as in reserve, intended to be used only as a last resort to ensure compliance with the best value duty. The proposed approach balances the evidenced need for government support with the leader’s commitment to work constructively so that we see sustained, long-term improvement.

I propose the intervention will be in place for five years, but should there be sufficient evidence of progress, functions will be handed back to the council earlier. The council will be directed to prepare and agree an improvement and recovery plan and progress against the plan must be demonstrated, through regular reports from the ministerial envoys.

Representations

I am inviting representations from Warrington borough council and any other interested parties, including residents, on the inspection report and proposed intervention package, by 22 May 2025. I have taken steps to ensure that this report will be seen by councils who are working together on proposals for devolution.

I will carefully consider all representations before deciding how to proceed. The proposal to intervene is not taken lightly but is designed to strengthen and accelerate improvement to ensure the council delivers for its residents and in partnerships. With council focus and support from the ministerial envoys, I expect the council to demonstrate the swift and sustained progress necessary to ensure compliance with its best value duty.

Nottingham City Council

Nottingham has been in intervention since January 2021; and commissioners were appointed in February 2024, led by Tony McArdle OBE. I am today publishing the commissioners’ latest report, received in March, which highlights good progress in planning, including the development of the strategic plan, medium term financial plan, and improvement plan. It is clear that the council continues to work closely with the commissioner team to move itself towards a more sustainable position. It is vital that this continues, with the full support of both officers and members throughout the organisation, and that the full range of reforms at the council must now be embedded alongside the collective work on developing proposals for local government reorganisation. I look forward to receiving the commissioners’ update in August.

Cheshire East Council and Newham Borough Council

Finally, I am updating the House on steps we are taking in relation to Cheshire East council and Newham borough council.

After carefully considering the relevant evidence, my Department has today issued these authorities with best value notices. These are not statutory interventions but provide a formal notification of the Department’s concerns. We found no evidence of current best value failure at the councils, but significant issues need addressing at pace to avoid future failure.

The councils are expected to continue driving their own recovery and are requested to engage with the Department for assurance of improvement. The notices will be in place for 12 months, after which progress will be reviewed. I am pleased that both councils are already supported by independent improvement boards, established with the LGA. I urge the councils to make full use of their boards’ expertise, and the Department will seek updates from them.

Conclusion

I am committed to working in partnership with these councils to provide the necessary support to ensure their compliance with the best value duty and the high standards of governance that local residents expect.

I will deposit in the Library of the House copies of the documents referred to, which are being published on gov.uk today. I will update the House in due course.

[HCWS620]

Havering Borough and Essex Devolution

Jim McMahon Excerpts

Wednesday 7th May 2025 Commons Chamber

[The Minister for Local Government and English Devolution (Jim McMahon)]

I am grateful to the hon. Member for Romford (Andrew Rosindell) for securing this important debate and raising the question of Havering borough’s place in relation to devolution in Essex. I pay tribute to the hon. Member for championing his area and for the very clear passion that he has for the place he represents. One thing that is special about Parliament is that connection and the pride with which Members speak about the place they live in and represent, and I absolutely heard that in every canter through the historic county of Essex and just how rooted it is in that kind of county, ceremonial, historic identity. I accept that completely.

Although our reorganisation in Greater Manchester was a bit later, in 1974, many of us still feel that we are Lancashire to our heart, even though we are part of the Greater Manchester combined authority, and I think it is possible to be proud of both. We are proud in the way that we look to Manchester and the success of that city region, but proud too of our historical roots in Lancashire, so I think the two are possible.

The hon. Gentleman might find it useful to know that one of the first things that we did upon coming into government was change the way the county flags are flown. For a very long time, the Department that I represent held all the historic county flags for England in the Department, and whenever the historic county day came up through the course of the year that flag would be flown from Marsham Street, at what I would say is a very average office block. I did not think that that quite gave status to the historic counties, and it did not give the opportunity for Members of Parliament and visitors to see the county flags. They have been transferred to Parliament, to the Speaker’s Office. In addition to Counties Week, 21 to 27 July, when all the county flags of England are in Parliament Square, the county flags will be flown in New Palace Yard on the day of each county. I think that is the appropriate place and I hope Members will search out their flag on that day. Identity and belonging is really important.

As hon. Members will be aware, the Government have made it a clear mission to extend devolution to all corners of England, while fixing the foundations of local government. Our work with councils across Greater Essex demonstrates the strength of that ambition, as we endeavour to establish a new county combined authority for the area while delivering local government reorganisation.

The Government recently conducted a public consultation on our proposals to establish a mayoral combined county authority across Essex county council, Thurrock council and Southend-on-Sea city council, as part of the devolution priority programme. Responses to the consultation are currently being assessed and I will shortly make a decision on whether to proceed with the necessary legislation, subject to further consent from the councils involved. The three existing council areas firmly form the currently proposed footprint for the future devolution of Greater Essex, as the consultation was conducted on that basis.

The three councils, along with the district and borough councils across Essex, were also invited in February to submit proposals for a new unitary structure for the county. As requested, they submitted an interim plan in March and we provided feedback to support the development of final proposals, which are now due in September. It is for the local councils to develop those proposals and for the Government to assess them on that basis. It is currently not envisaged that the boundaries of Greater London will be changed, or that the proposed Greater Essex mayoral combined county authority will be expanded, although the latter would be possible at a later date should it be locally desired and should statutory tests be met.

As for changing the boundaries of the councils themselves across Greater Essex, that will be for the councils to propose if they wish, as they develop and submit proposals to the Government for unitary local government in that area. We remain open to discussions with any council across England on its vision for its region, and we continue to encourage discussions across councils and areas as we deliver on our ambitious agenda for local government.

I hope that this brief and by no means exhaustive summary of our plans for Greater Essex devolution and local government reorganisation has provided helpful context to the hon. Member for Romford. I understand completely his point about Havering being anchored in Greater London, but I hope he takes some reassurance that the guidance we sent out throughout the process has anchored two things that he touched on in his speech.

First, the administrative boundaries being drawn are about efficiency and the importance of having a single tier of local government that people can hold to account and that is sustainable in the future. But it is in no way intended to cut across the identities that people feel and are proud of. No council should try to cut across the historic identity that local areas feel.

Secondly, every council, regardless of size or where it is in England, should always root itself in local communities and local neighbourhoods. The days of councils being disconnected and removed from local communities are long gone, and that empowers local councillors to be the frontline community convenors that they stood for election to be.

Question put and agreed to.

Birmingham: Waste Collection

Jim McMahon Excerpts

Tuesday 22nd April 2025 Commons Chamber

[Kevin Hollinrake (Thirsk and Malton) (Con)]

(Urgent Question): To ask the Secretary of State for Housing, Communities and Local Government if she will make a statement on the disruption to waste collection and the deployment of the military in Birmingham.

[The Minister for Local Government and English Devolution (Jim McMahon)]

Before I start, may I recognise, on his passing, the significant contribution of Pope Francis? Also, as the Minister for Local Government in England, I wish everyone a happy St George’s day for tomorrow.

Members across the House will be aware of the continuing disruption caused by industrial action in Birmingham. The Government have repeatedly called for Unite to call off the strikes and accept the fair deal that is on the table. The commissioners and the council are undertaking the necessary reforms in the context of a challenging financial situation, with the legacy of equal pay, when women workers were systematically paid less than their male counterparts in similar roles. Though the council must chart that course itself, our actions speak to our determination to ensure the welfare of the citizens of Birmingham.

We have been providing intensive support to the council in its efforts to address the backlog of waste that has been building up on the city’s streets, and significant progress has been made in the last fortnight through a concerted effort and with the assistance of other councils, private operators and the endeavour of many hundreds of determined workers, who have worked extremely long hours. The result is that 26,000 tonnes of excess waste have been removed and levels are now approaching normal. More than 100 bin trucks are out every day and regular bin collections have resumed. The council continues to monitor the situation closely to ensure that waste does not build up again.

This is a Government who stand up for working people. The industrial action is in no one’s interest because the deal on the table is a good deal. The council has worked hard to offer routes to maintain pay through transferring workers to comparable roles and, in some cases, to upskill those workers in scope. There may of course be details to iron out, but that is why talks are so important. As we have repeatedly made clear, Unite should suspend the strike, accept the deal and bring the dispute to an end. The Government will continue to be on the side of the people of Birmingham and to support the council in creating the sustainable, fair and reliable waste service that its residents deserve.

[Kevin Hollinrake]

It is astounding that the Secretary of State, having had to resort to calling in the Army to cover her blushes for her failure to resolve the situation, was not intending to make an oral statement to the House and had to be dragged before it by means of this urgent question. She is failing—failing to stand up to the unions, failing to protect the residents of the UK’s second city and failing to protect the reputation of our nation—and now resorting to being bailed out by our brave armed forces, which I note the Minister did not even mention. It is a national embarrassment.

I realise that the Minister and the Secretary of State were not born until 1980, but many in this House and in the wider country remember very well the 1970s and the winter of discontent. It is clear that with this Government we risk going back to those days. To prevent that from happening, I offer the Minister and the Secretary of State our support, if the Minister will clarify and confirm the following. What is the projected cost to the taxpayer of the military’s involvement? Will he rule out the humiliation of service personnel ever having to collect refuse? Will he commit to using provisions in the Strikes (Minimum Service Levels) Act 2023 to ensure that residents receive a basic level of service, and to reinstate legislation that would allow the council to commission agency workers to clean up the city until the strike is resolved?

Finally, will he abandon provisions in the Employment Rights Bill that give unions access to every single workplace in this country, that lower the threshold for union recognition, and that make it much easier for unions to call strikes? Do that now, and the Minister will have our support. However, if he and the Secretary of State duck the tough decisions to please her union paymasters, the tail may once again wag the dog in this country, which could take it back to the 1970s.

[Jim McMahon]

If that is a dog, it is more like a Bichon Frisé attack on the Government I’m afraid—it really did not land. What do people in Birmingham want? In the context of an unacceptable situation, where rubbish is accumulating, the people of Birmingham want it to be resolved. What they have in this Government is a Government who do not pray in aid party politics or councils’ rows in the way the previous Government did. What we do is work together in partnership for the end that is important—[Interruption.] Conservative Members have been carping from the sidelines—they have been doing this for weeks now—and they have offered every criticism but not a single solution. We would be forgiven for believing that they had not been in power for 14 years, when Birmingham was sent to the wall. We are, of course, appreciative of our colleagues in the MOD for the support that they have offered, and the three logistics advisers have made a difference. However, as they themselves have said, Birmingham is more than capable of making sure that the rounds are collected, and the trucks are on the road as of this week. That mutual support is important.

I need to pull up the hon. Member for Thirsk and Malton (Kevin Hollinrake) on a comment that he made earlier. He spoke about the “humiliation” of collecting waste from the streets, and the “humiliation” of decent working-class people going out to provide a public service to millions of people across England. It is not a humiliation; it is a public service, and one that is critical to our nation’s interests. To say that the job is a humiliation— I would say that working-class people, the bin collectors across this country, take pride in their work, and they deserve more respect from the bloody Opposition.

[Mr Speaker]

I call the Chair of the Housing, Communities and Local Government Committee.

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I associate myself with the Minister’s remarks on the passing of Pope Francis. May his soul rest in perfect peace.

It is important for us to remember the innocent residents who are caught up in this dispute, and the fact that they have been suffering for many weeks without that refuse being collected. I think about the many families who had to celebrate Eid while seeing all that rubbish continue to pile up. In just over four weeks there will be another half term, and again many families will be at home. It is important that the Government continue to work closely with Birmingham and all parties to make sure that this is resolved.

The Minister outlined some of the concerns around the funding pressures that councils of all political parties have faced over the past few years. He will know that he and the Government have handed out exceptional financial support for a number of councils, and a number of councils continue to face challenges with their finances. Can he assure the House that in discussions with Birmingham council and others, we will continue to support hard-working local government officers, ensuring that their finances are again fit and proper, so that we do not face situations such as the one we see in Birmingham?

[Jim McMahon]

I thank the Chair of the Select Committee for that question, which in a way goes to the heart of the fragile situation that we inherited as a Government. After 14 years, Birmingham, and in fact many councils of all political stripes, had been sent to the wall by the previous Government. The number of bankruptcy notices that were issued is testament to that. We have been able to stabilise the sector through the recovery grant—the first time ever that that grant was issued, and Birmingham was the largest beneficiary. We have given that city the support it needs, but we want to ensure that the progress we have seen over the past couple of weeks is maintained. I completely appreciate that there were unacceptable scenes where waste has built up on people’s streets. That is not okay in normal times, and it is certainly not okay in half term, when children are playing in their local parks and on their streets. That is why we moved quickly to ensure that that waste was removed. The fact that 26,000 tonnes has been removed shows the dedication of those frontline workers.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Vikki Slade (Mid Dorset and North Poole) (LD)]

I refer the House to my entry in the Register of Members’ Financial Interests.

It is unacceptable that this dispute has dragged on into a ninth week. Even more disgraceful, the people of Birmingham are now forced to clean up their own streets. I thank those who gave up their Easter holidays to pick up rubbish for their neighbours but, let us be honest, they should never have had to do it.

This goes way beyond Birmingham. It started with an equal pay claim that bankrupted the council, and with widespread local government reorganisation ahead of us all, what will stop it from happening again? As councils merge, staff will sit side by side doing the same jobs but on completely different pay from each other. That is unjust, unsustainable and a ticking timebomb. Six years after the reorganisation of Bournemouth, Christchurch and Poole council, which I led, pay harmonisation is still going on. We could not afford to meet everyone’s expectations, and neither can most councils, which teeter on the edge. What is the Minister doing to stop this from spiralling elsewhere and to protect residents from eye-watering tax hikes or devastating service cuts?

[Jim McMahon]

I want to be careful not to stray too far from Birmingham, which is not affected by local government reorganisation. However, it is completely usual, when looking at the transfer of the workforce, for negotiations to take place with workers and trade unions to harmonise terms and conditions and pay. That will take place in the usual way. We need to be careful not to set hares running unnecessarily.

The issue in Birmingham—the foundational issue, in a way—is equal pay. For far too long, women workers were paid far less than their male counterparts for comparable roles—that went on for decades. The council has to resolve that, as other councils did many years earlier. Women cannot continue to be paid less than their male counterparts. In the end, this is about harmonisation done in the right way.

[Preet Kaur Gill (Birmingham Edgbaston) (Lab/Co-op)]

I thank the Deputy Prime Minister and the Minister for their support in addressing the public health concerns in Birmingham. As the Minister says, 26,000 tonnes of waste has now been cleared, and weekly collections will resume. I put on record my thanks to everyone involved in the clean-up, including many volunteers—they are the best of Birmingham. Does the Minister agree that it is right that the council resolves equal pay issues, with over 7,000 women now due compensation? That is precisely what the deal on offer does, while ensuring that no worker has to lose pay.

[Jim McMahon]

That is precisely the issue with the WRCO—waste recycling and collection officer—role that started the strike action to begin with. An enhanced payment was made for that role that did not stand, when it went through job evaluation, compared with women who were doing similar roles elsewhere in the council. That cannot stand. There must be a red line whereby no agreement can be reached if it compromises the council position on equal pay and builds up liability for the future. I absolutely pay tribute to the community groups and frontline workers who have made sure that the response to the clean-up has been one of co-operation.

[Sir Andrew Mitchell (Sutton Coldfield) (Con)]

Will the Minister make a point of thanking the well-run and cost-effective Conservative councils that have either helped or offered to help clear up this terrible mess? Will he bear in mind that it is not just the bin strike that my poor, long-suffering constituents in the royal town of Sutton Coldfield have had to endure, but the pending closure of our libraries and the massive hike in council tax? Does he understand why so many of us want to see a proper judge-led inquiry into how bankrupt Birmingham city council has got Britain’s second city into this mess? Will he also bear in mind that this is a dispute between two wings of the Labour party? Whatever I may think of the council that he leads, it is quite wrong that my constituent, the leader of the council, should have had a photograph of his house put on social media by Unite. Will the Minister condemn that action by Unite?

--- Later in debate ---

[Jim McMahon]

Let me be clear: over the past few weeks, photographs have been taken of the houses of union officials, and the same trade union has used photographs of the homes of the council leader and cabinet members. Neither of those things is okay. This is already a fraught dispute. It requires the good faith of all parties, and negotiation through being in the same room and talking through the issues in the interests of the workers and the people of the city of Birmingham. Our hope, and our expectation, is that, although what has happened has happened, a line is drawn and we can move forward in good faith.

[Tahir Ali (Birmingham Hall Green and Moseley) (Lab)]

I refer to my entry in the Register of Members’ Financial Interests. The crisis over bin collections in Birmingham has dragged on for far too long, and my constituents have suffered significantly as a result. While I understand the financial pressures on the council, clearly it is unreasonable to expect any worker to accept a pay cut. Will the Minister commit to taking all steps possible to encourage good faith negotiations between both parties, so that a fair deal can be reached and this vital service can be restored without any further disruption?

[Jim McMahon]

I do not think there is a single example—although I am prepared to be corrected—where equal pay has not had winners and losers on the edges. That is an element of equal pay that we have to accept. The envelope is not limited, so the books have to balance.

On the issue of how the WRCO role is being changed and whether workers need to lose pay, the council is offering a sideways move in the street scene division on the same grade 3, which will mean no loss of income. It is offering workers a move to an equivalent grade 3 role even if training is required, and it will provide that training. It is also offering LGV driver training, so that loaders can upgrade to being a driver, which carries a higher payment than their current role.

[Ayoub Khan (Birmingham Perry Barr) (Ind)]

I recall asking the Minister on a previous occasion about getting support from military personnel, and he said that I had gone “from zero to 100” very quickly. The difficulty with this Government is that they have been very slow to react. I was out last Thursday picking up bin bags with youth workers from a local organisation who had worked 12-hour shifts and were then spending their evenings cleaning up the streets. The Minister has failed to raise the fact that thousands of tonnes of recyclable waste have not been collected, encouraging further fly-tipping. When will this Government intervene and resolve the issue? Bin workers work hard. Up to 200 of them will lose up to £8,000, and that needs to be resolved.

[Jim McMahon]

I share the hon. Member’s appreciation of community volunteers who are cleaning up the streets, just as I welcome the hard work of hundreds of frontline council workers who have stepped in. Their efforts have meant that 26,000 tonnes of accumulated waste has now been cleared. We can agree on that, at least.

On the question of when it is appropriate for the Government to offer support, it is when a major incident is declared. As the hon. Member will know, I have been in Birmingham every week since then. There have been daily update calls with the council, and we have been providing essential support to the council to clear up the city.

[Laurence Turner (Birmingham Northfield) (Lab)]

I thank the Minister for his efforts to keep Birmingham MPs informed on a cross-party basis during this dispute. I would also like to associate myself with the condemnation of the publication of photographs of the houses of some of the parties to the dispute. My residents in Birmingham Northfield want to see a service that is not the same as before the strike; it must be better, and I know the Minister shares that ambition.

We have heard today about the 1970s. It is not so long ago that a Conservative Secretary of State stood at the Dispatch Box and said that he was delighted to announce 12% cuts to Birmingham’s budget—the sharpest of any unitary authority. Does the Minister agree that the one word missing from the shadow Secretary of State’s question was “sorry”?

[Jim McMahon]

We have been here repeatedly for questions, statements and even urgent questions in the House, and on not a single occasion has the shadow Secretary of State or shadow Ministers accepted their role, after 14 years of government, in driving councils of all colours to the wall. We need to bear in mind that commissioners were brought in under the previous Government, and Birmingham had to declare bankruptcy under the previous Government. The only difference now is that it has a Government on side willing to meet it financially—that is why the recovery grant was so important—but also in spirit and through our actions, which is why we are working in partnership to clean up the streets and get Birmingham clean.

[Bradley Thomas (Bromsgrove) (Con)]

Which legacy is the Minister most proud of: rubbish and rats in Birmingham, or Labour’s breach of its promise to the electorate to freeze council tax?

[Jim McMahon]

I am sure that sounded a better question when it was being drafted this morning. I do not think anyone takes pride in the strike action and the waste that accumulated on the streets. This is a very serious issue. It is unacceptable that a major incident had to be declared and that public health concerns were so prevalent. That is why we took quick action. It is why the streets have been cleaned to the tune of 26,000 tonnes, and it is why there are more daily collections taking place now in terms of tonnage than there were in routine times—to make sure they catch up and do not slip back—but we recognise that, in the end, the only solution is to deal with the underlying strike action that is causing the disruption.

[John McDonnell (Hayes and Harlington) (Ind)]

I refer to my entry in the Register of Members’ Financial Interests. I am a member of Unite, and I am very proud of that; I think four generations of my family have been members. Not to rise to the provocations of Conservative Members, but there is a difference between having three military advisers and having troops on the streets. The latter would be seen as an act of provocation and a worsening of the situation. May I suggest that the Minister or the Secretary of State convenes the meetings between the council and the union to secure progress in the negotiations?

--- Later in debate ---

[Jim McMahon]

There has been almost daily communication with the council, and the trade unions have made representations, too, but we need to be clear about appropriate roles and responsibilities, and about the lines of accountability. The council, not the Government, is the employer of the workforce in Birmingham, and it is for the employer and the employees to reach an agreement that both can accept. We urge both parties to negotiate in good faith. We believe that the deal on the table is a good deal. The right hon. Gentleman is correct to say that workers have the right to make their representations, but the council has to take into account all its workforce, including over 7,000 women, who historically were paid far less than their male counterparts for equivalent roles. That is the foundational issue at the heart of the dispute.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Despite assurances from the Dispatch Box before the Easter recess, we continue to see piles of rubbish on the streets in Birmingham. The costs are mounting, and the rats—the squeaky blinders—continue to roam the streets of Britain’s second city freely, so I ask the Minister again: what are his Government and Labour-run Birmingham city council doing to bring an end to the strike? Enough is enough—residents want an end to the situation.

[Jim McMahon]

Work is still taking place. I should address the question about rodents, because that is a serious issue. Nobody wants to see rats in the streets, particularly around the accumulated waste. We welcome the council’s decision to suspend the charge for calling out pest control, so that households that report rodents are not financially disadvantaged. On the Government’s response to the situation, from day one we said that the accumulated waste was unacceptable and a public health hazard. The Government stepped in to support the council, to ensure that we could get more trucks out of the depot, increase the amount of waste collected and regularise the number of routine collections. I am pleased that progress has been made, but what will ultimately resolve the dispute is the trade unions and the council reaching an agreement that brings the strike action to an end.

[Mr Speaker]

On the promotion of Leeds United, I call Richard Burgon.

--- Later in debate ---

[Jim McMahon]

We can certainly agree that people have the right to strike, but people also have the right to go to work. We saw a restriction of the number of bin trucks that could leave the depot, which had a significant impact on the amount of waste that could be collected. The direct result was the accumulation of tens of thousands of tonnes of waste on the streets. In the end, we really want Unite, as the negotiating body for the workforce it represents, and Birmingham city council, as the employer, to get around the table on the deal that has been tabled, to iron out the differences, if there are any, and to reach an agreement. If that will take longer, we strongly encourage Unite to suspend strike action during the negotiations.

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

Birmingham city council is the largest local authority in the UK by population. Sadly, for many years it has struggled with severe problems that impact its residents. The Government have engaged in local government reorganisation across much of the country. Large parts of the area covered by Birmingham city council may be better administered by bodies elsewhere, outside the boundaries of the city. Will the Minister look at whether it is time to review the boundaries of Birmingham city council? The council is so large that it cannot function properly for its residents.

[Jim McMahon]

I do not think that anyone could criticise my work ethic, but reorganising a third of England and the 20 million residents affected would be quite a reorganisation to deliver. As things stand, there is no intention of reorganising Birmingham, but there is absolutely an intention of resolving the underlying trade union dispute, getting people back to work, and reaching an agreement that is acceptable.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

May I point out that the strike started under this Labour Government, and under a Labour council—and despite all the Minister’s hand-wringing and anguish, the strike continues under a Labour Government, and under a Labour council? It is futile for the Government to pretend it is all somebody else’s fault, least of all the fault of the previous Government. Will the Minister avoid misrepresenting what my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) said? He made the perfectly reasonable suggestion that the Minister should reinstate the legislation that would allow agency workers to be brought in to pick up rubbish off the streets of Birmingham. Why will the Minister not do that? Because he is pussyfooting around and kowtowing to his Labour paymasters, the trade unions.

[Jim McMahon]

That certainly gets the award for the silliest question yet. There is no kowtowing or bowing. We played this with an absolutely straight bat in the interests of the people of Birmingham, as they would expect. On agency workers, our judgment is that they are not required, because the mutual aid from neighbouring councils and housing associations, and the redeployment of frontline staff from elsewhere in the council, has dealt with the waste that accumulated. We have seen 26,000 tonnes of waste cleared. As I said, now that trucks are leaving the depot as usual in most cases, more tonnes per day are being collected than during regular times, so the council is on top of this. There is no need to bring in additional agency staff in the way that the hon. Gentleman says.

[Sir Julian Lewis (New Forest East) (Con)]

Given that the Minister no doubt sincerely believes that the offer on the table is a good one, why does he think the unions are not accepting it?

[Jim McMahon]

It is clear from the negotiations that there are a number of moving parts. I should declare that we are not replicating those negotiations in this Chamber; they should be between the employer, the employees and the trade unions, and we should not try to circumvent that here. Our belief is that the agreement strikes the right balance between giving support to the workers affected—those in the WRCO roles—and not undermining the equal pay work that has been done. For far too long, we have seen women being underpaid for the work that they do.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

The Minister failed to answer the question from my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) on whether troops should be used to clear up the mess. Will he do so now? The Defence Secretary, who is sitting next to the Minister, will know very well that a trained soldier’s pay starts at around £25,000. If troops are used, will they receive arduous duty payments under the arrangements for military aid to civil authorities?

[Jim McMahon]

I think I have covered this at least a couple of times. As I said, we are grateful to our colleagues in the Ministry of Defence for the logistical support they have provided. We had three members of staff on logistical planning; they have had a significant impact, and we and the council are grateful for that. There is no requirement for troops to be deployed on the streets to collect waste, because the council is getting on top of it. We do not take that for granted, and we do not want any disruption to that, but to be clear, the military are not needed on the streets of Birmingham. The council have the situation in hand, and workers are doing that work today.

[Lincoln Jopp (Spelthorne) (Con)]

I have a genuine question for the Minister. I am a little bit confused about what these three supermen and women from the MOD or the military have done. One of the principles of mutual aid and military aid to a civil authority is that the people being helped must not have the capacity themselves, and it must be unreasonable to expect them to grow that capacity in a timely manner. What have those people done that Birmingham city council could not do itself?

[Jim McMahon]

I am usually a bit suspicious when somebody starts their question with “This is a genuine question”, but that was actually a proper question. Members could learn from it. [Interruption.] Calm down. On the added value that the MOD was able to provide, every council has rotas for getting bins collected from a given place. Birmingham had mutual aid offers from other councils, and it had to work out how best to use quite different offers of support—how to deploy trucks and available workers across the city, working in a different way. The logistical workers from the MOD supported the creation of new collection rounds to clear the accumulated waste.

[David Reed (Exmouth and Exeter East) (Con)]

Could the Minister—or the Pied Piper, as he is quickly becoming known—clear up the record, please? In his opening statement, he said that the military offered its support to clear up this mess. Did it offer, or was it ordered by his Department to provide support, because his Government cannot stand up to the unions?

[Jim McMahon]

I have already covered the value that the MOD has provided, and of course, we work in partnership. The offer of support was made to the council, which received that offer gratefully. However, the MOD, whose logistical planners have been on the ground in Birmingham, has been clear that the council is at a point at which it does not need its support, because it has the collection rounds in place. I hope the hon. Gentleman welcomes that.

[Lewis Cocking (Broxbourne) (Con)]

I refer Members to my entry in the Register of Members’ Financial Interests. Just eight weeks ago, during a Select Committee evidence session, the Minister told me that

“there is a lot of good work taking place in Birmingham”.

The Government want to create super-councils, covering half a million people and reaching over vast areas to manage bin collections and other vital services, against the wishes of my constituents. We have seen the result in Birmingham. Does the Minister believe that tons of rubbish on the streets is the model that the rest of the country should follow?

[Jim McMahon]

In a way, that question shows a misunderstanding of why Birmingham is in the situation it is in. It makes no more sense to say that Birmingham’s problems are because of its size and scale than it would to say, “Look at the debt liabilities built up by some of the smallest councils in the country, which have borrowed many hundreds or thousands of times their revenue.” In a way, these problems are down to long-term issues. Some of this situation is due to the foundational funding that Birmingham city council has been given, but Birmingham is getting its house in order. It is not an easy process, and that council would say itself that it has a way to go. When it comes to resolving historical equal pay liabilities, and issues with the Oracle IT system, the council faces a significant financial liability. It is making progress on modernising its workforce and on the future operating model, but it has some way to go.

[Mr Speaker]

That allows us to come to Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his answers to some very difficult questions. He will understand, of course, the absolute necessity of military intervention in civil life in Northern Ireland over a great many years. While it is never an easy option, does the Minister agree that if it is the only option to ensure that disease does not spread through the city—if a pay deal cannot be reached—action has to be taken, before the ill and the vulnerable pay the price of this stand-off?

[Jim McMahon]

As things stand, a normal service has returned to most streets at most times. The accumulated waste that was building up—which was not acceptable at all—has been removed. Some 26,000 tonnes has been removed; in most places at most times, the collection of bins is taking place as normal, and over 100 trucks a day are leaving the depots as usual. We hope that we do not return to the scenes that the hon. Gentleman has described, for the reasons that he expressed. That is not acceptable from a public health point of view, and has consequences.

Birmingham City Council

Jim McMahon Excerpts

Tuesday 22nd April 2025 Written Statements

[The Minister for Local Government and English Devolution (Jim McMahon)]

Industrial action continues to affect waste disposal services at Birmingham city council. The Government have repeatedly called for Unite to call off these strikes, and accept the fair deal on the table.

The major incident that the council declared, because of the risks to public health caused by interruptions to this vital statutory service, remains in force. The Government have taken decisive action to support the council in using the tools that it needs to ensure waste in the city can be safely and sustainably managed.

The statutory intervention in Birmingham city council is led by commissioners, who are supporting the council to undertake functions of local government in the city, including waste disposal services.

The Government have provided extensive and ongoing support to the city council to ensure the welfare of the citizens of the city. At the council’s request, the Government have deployed operational and logistical expertise to assist the council in addressing the accumulated backlog of waste on the city’s streets. That backlog presented real risks to public health, and especially that of the city’s most vulnerable and deprived residents, who should not have to endure the presence of piles of waste on streets, in parks and in other public spaces.

As a result of this concerted and ongoing effort, and with the assistance of other councils, private operators, and the endeavours of many determined workers who have put in long hours, over 26,000 tonnes of waste have been removed, and rubbish levels are approaching normal. More than 100 bin lorries are out every day; regular bin collections have resumed, and the council continues to monitor the situation closely to ensure waste does not build-up and to fight opportunistic fly-tipping.

I want to thank Birmingham city council for its continuing work to get the streets clean and to bring the dispute to an end. It must confront the challenge of modernising its waste disposal service so that it works for the people of the city and does not store up irresponsible liabilities for the future. While it is for the council to work through this with Unite, the Government support the council in its efforts to maintain the progress on resolving the equal pay injustice which saw thousands of women workers paid less than their male counterparts over many decades.

The council has put a constructive and reasonable offer on the table that protects the interests of the citizens of Birmingham, and of the council’s own employees in the waste disposal services.

The deal on the table is a good deal. The council has worked hard to offer routes to maintain pay comparable roles, and in some cases to upskill and increase workers in scope. The ongoing and extensive clean-up and maintenance operation will continue until the industrial action is suspended.

The Government will continue to be on the side of those people, and to support the council in its journey to create the sustainable, fair and reliable waste service that residents in Birmingham deserve.

[HCWS592]