Local Government Finance
Debate between Kris Hopkins and Andrew Love(9 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Kris Hopkins
I shall give way in a few moments.
We continue to recognise the challenges faced by rural communities. Through consecutive settlements, we have helped address the gap in urban/rural spending power. We expect the gap to continue to close. In the meantime, the settlement confirms another year of additional resources for the most rural authorities to recognise the challenges they face in delivering services. For 2015-16, in direct response to Members of all parties, we have increased the grant to £15.5 million.
Mr Andrew Love (Edmonton) (Lab/Co-op)
Does the Minister recognise the challenges faced by London, whose population is on the increase? The population of my own borough, the London borough of Enfield, will increase by 10% up to 2020, putting enormous strain on services, not least on children’s school places. What recognition has the Minister given to that population increase, and will he include it in the baselines so that it is reflected in the grant settlement?
Kris Hopkins
What I recognise is that London is a great international city, which has thrived under this Administration, and will continue to deliver significant jobs, wealth and income to the individuals out there. That is the root issue. Many Labour Members stick their hands out and ask for more money; the reality is that this Government are setting about ensuring that we grow our economy, get people into work and give them the ability to stand on—[Interruption.]
Kris Hopkins
This Government continue to ensure there is a substantial welfare net to look after the most vulnerable individuals, and we have put additional funding into the budget. I applaud the council for reducing its council tax, however, and I would just note that it is following the trajectory given by the previous Conservative administration. That may be only a small glimmer of light, but somebody appears to have learned from the excellent previous Conservative administration.
The local government finance report 2015-16 sets out a fair settlement, which ensures councils continue to have significant spending power. Even with the savings that have been made to date, local authorities in England were expected to spend over £115 billion in the current financial year. When we factor in councils’ new responsibilities for public health, the amount local government are expected to spend is higher than it was under the last Administration.
Mr Love
My local authority, the London borough of Enfield, is the 64th most deprived in the country, but its ability to deal with the problems of need is hampered by the long-term impact of the damping formula. I understand what the Minister said earlier about the need for floors, but can he offer any support to those local authorities struggling to address the needs of their boroughs because of capping over a long period?
Kris Hopkins
There are two things. First, there is not a cap; there is an opportunity for people to increase their council tax, and if councils believe that their public would support them, they may hold a referendum. Secondly, I go back to a point that I made earlier about the success of individuals. The route out of poverty and deprivation for an area such as my former council area of Bradford involves getting people skilled up, with local councils supporting them, and those individuals getting a job and being able to stand on their own feet. Breaking the cycle for an individual trapped in one has to be the responsibility of both central and local government.
The referendum principles report sets a sensible threshold for council tax increases, unless local people are happy to approve something else through a referendum. It is more important than ever that councils can demonstrate to local taxpayers that they are using every pound of their money to best effect to deliver efficient and effective services and to achieve sensible savings.
Housing Supply
Debate between Kris Hopkins and Andrew Love
Kris Hopkins
The reason the Prime Minister appears on building sites is that he supports the housing industry, the reason I visit them is that I support the housing industry, and the reason the hon. Gentleman and his predecessors could not visit them is that they had crashed the housing industry and nothing was being built. As for leaked documents, I am not going to comment, but what I will say is that every element of our Department seeks—whether through planning, supporting skills or supporting small businesses—to ensure that we have sufficient starts to take advantage of the housing offer that is out there and to enable the housing industry to grow.
Mr Andrew Love (Edmonton) (Lab/Co-op)
The Minister still has not explained why we have the lowest number of housing starts on record, and why the number is likely to be lower this year than last year. As well as spreading all the news of the developments that are heartening, why does he not address the real problems that affect house building at present?
Kris Hopkins
The reason house building is still a challenge is that the Government of which the hon. Gentleman was a member broke the economy, borrowed too much, crashed the banking system, and wiped out a quarter of a million jobs. That is why it is taking so long to put house building back on track, but it is becoming stronger.
As a direct consequence of our extending Help to Buy to 2020, we will deliver some 120,000 new homes. Help to Buy will continue to be a success. Some 30,000 homes have already been delivered, 87% of them to first-time buyers, and 91% are outside London. The average house price is about £151,000, well below the average price of a house in this country at the moment.
Oral Answers to Questions
Debate between Kris Hopkins and Andrew Love
Kris Hopkins
The hon. Gentleman is right. A total of 323 households were found to be homeless but not in priority need—just over a quarter of the peak figure of 1,276 in 2005. That is a disgraceful figure, and I agree that we do not want to be in this position. Over £12 billion-worth of investment through Crisis is helping single homeless people, and in Rochdale this has supported a successful Bond Board scheme that has helped 125 single homeless people. I respect the hon. Gentleman and would like to work with him to try to solve some of those issues in Rochdale. I look forward to receiving a note from him about this.
Mr Andrew Love (Edmonton) (Lab/Co-op)
The number of families with children living in bed-and-breakfast accommodation is at a 10-year high, with all the consequences for the education, health and well-being of the children concerned. Does the Minister think that that is a creditable record on homelessness since the Government came to power in 2010?
Kris Hopkins
Homelessness overall is currently down by 7%; I am not sure where the hon. Gentleman has got his figures from. The number of families in temporary accommodation—bed and breakfast—has dropped by 37% in the past year. That is a direct consequence of this Government’s intervention to make sure that vulnerable families, in particular, are not in the position they were in under his party’s Administration.
Oral Answers to Questions
Debate between Kris Hopkins and Andrew Love
Mr Andrew Love (Edmonton) (Lab/Co-op)
T2. When his party was in opposition, the Prime Minister described homelessness and rough sleeping as a disgrace. Last week the Department published figures which showed that since 2010, rough sleeping had increased by 37%. How would the Minister describe that record?
The Parliamentary Under-Secretary of State for Communities and Local Government (Kris Hopkins)
Rough sleeping in the country overall has increased by 5%, and it has fallen by 3% in London.