Local Authority Budget Reductions

Jim Shannon Excerpts

Tuesday 30th October 2018 Commons Chamber

[Dan Jarvis]

If councils are unable to fund sufficient support for older people, more of them will end up being admitted to hospital. Less money for children’s services means that our young people will only get by rather than thrive. Failing to invest in public transport stifles economic growth, isolates communities, reduces social mobility and damages our environment. These are just a few examples of an austerity agenda that lacks any form of long-term strategy.

I am proud of the way in which Labour-run councils have dealt with these challenges, even in the face of unfairly distributed funding. The poorest local authorities, which tend to be Labour run, have had their spending cut by £228 per person since 2010, while the richest councils have had their spending cut by only £44 per person. These cuts are not just affecting local residents. Years of pay freezes and below-inflation increases mean that some of our council workers are resorting to food banks, are over-reliant on credit and are asking for financial help from family and friends. Unpaid overtime is now essential to keep services going. Nearly half of our council staff are now thinking about leaving to do something less stressful.

Recent research by my union, Unison, found that 83% of council staff do not think that the quality of services delivered for the public have improved and seven in 10 council employees across South Yorkshire think that local residents are not receiving the help and support that they need. Those are figures that should concern us all.

Following eight years of austerity and some £7 billion of cuts, yesterday’s Budget offered little comfort to our local authorities. Local councils face a funding gap of £7.8 billion by 2025 and are still going to be cut by £1.3 billion next year. Yesterday’s Budget offer of £650 million for the coming year is nowhere near enough to close even the funding gap for social care, let alone address the shortfall in other services.

Once again, local authorities have to make do with short-term fixes. The creation of yet more short-term funding pots is no way to get value for money from public spending. Unless meaningful changes are made, the most vulnerable in our communities will continue to suffer. Central and local government need to work together on the fundamental reform of the way community services are funded. If the era of austerity is truly coming to an end, it needs to feel that way to our local residents.

It seems to me that we live in a time of increasing disenfranchisement and distrust. Across the UK, only 27% think that our system of government is working well and only a similarly small number feel that ordinary people have a big say in decision making. When I look at my home county of Yorkshire, it is easy to understand why. Government spending is nearly £300 per person lower than the national average; transport infrastructure investment is one 10th of that in the capital; and income is only 80% of the national average. These concerns cannot be addressed by the piecemeal redistribution of income that we saw yesterday. They can be addressed only by redistributing power. The Government should be working to empower communities by devolving decision-making closer to the places that it will affect.

[Jim Shannon (Strangford) (DUP)]

I thank and congratulate the hon. Gentleman on bringing this matter forward. Just yesterday, the Chancellor announced £350 million for the Belfast city deal, which will benefit my constituency of Strangford. My council of Ards and North Down got together with adjoining councils to make this deal a reality. Does the hon. Gentleman agree that, where possible, if councils can come together to secure a city or a regional deal, it is a great and a good way of securing extra funding for the local areas? I spoke to him beforehand, and he knew that my question was coming.

[Dan Jarvis]

I am grateful for the hon. Gentleman’s intervention; he makes a very important point. I think back to many of the conversations I had with members of the public during the referendum campaign, many of whom used it as an opportunity to vent their frustration against a political system that they felt had not served them well. If we are going to address those feelings of disenfranchisement and alienation, the closer that we can place political decision making to the people who will be affected by those decisions, the better. That is why devolution provides a really important opportunity for the Government to engage with those communities and place not just political power but resources closer to the communities who will be affected by the decisions that are taken.