(3 days, 15 hours ago)
Commons ChamberI totally agree. This Government are making the change. We are being strategic and we know what our future is. We cannot rely on the market as we move forward. It is absolutely essential that we think about growing the economy, ensuring that wealth lies in the hands of the people who live in those communities so that we can build our lives back again.
I want to agree with all the interventions that have just been made—
Absolutely. [Laughter.] We are going to have no disagreement whatsoever because what we need is a Government who will deliver the jobs and skills that have already been identified. While the investment into STEP—spherical tokamak for energy production—fusion in north Nottinghamshire has the potential in time to unlock new skills, jobs and opportunities that will completely change the industrial landscape of my area for years to come, my demand of Government is an industrial strategy that encompasses and prioritises the left-behind areas.
The Treasury’s use of that formula is the simple explanation for why we have left-behind towns across the whole of the UK. I value and welcome the fact that the Government have listened, and have resolved to overhaul the Green Book and use a place-based analysis as an integral element of the formula in future. I thank my hon. Friend the Member for Rossendale and Darwen (Andy MacNae) for his work with Ministers on this issue. That change is fundamental, because being left behind means failure. We had a Government who were only interested in the easy solutions, and were willing to see parts of the country become no-go areas for new industry and new opportunities.
On the point of skills, there is a risk with non-mayoral areas that we do not get the same level of investment as goes into city mayoral areas. Does my hon. Friend agree that it is important that we see that money flow into all our communities across the United Kingdom?
Come on. This debate is far too important to start scoring party political points at this stage.
I will finish by saying that time is running out. It is not handouts we are asking for, or sympathy; our demand is strategic investment. My ask of the Minister is give us the tools. Is it little Britain or Great Britain? Is it little Englanders looking over their shoulders or Great Britons looking out to the future?
(3 days, 15 hours ago)
Commons ChamberAs we know, the previous Government repeatedly broke their promises to deliver on the issue of conversion practices and allowed the debate to become ever more toxic and divided. We are committed to bringing forward legislation to ban these abusive practices—that is a key manifesto commitment. We will be publishing our draft Bill later in this Session, and we want to work with Parliament to ensure that our legislation is robust and does not negatively impact legitimate support for those exploring their sexual orientation or gender identity.
I call the Liberal Democrat spokesperson. [Interruption.] Oh, sorry—I call Jim Shannon! How could I forget him?
Absolutely right, Mr Speaker. I thank the Minister very much for her answers, but can she outline what support is in place for people of all faiths and none to receive counselling that is right and appropriate, helping them to find the answers that they all seek?
As I have explained, we are absolutely committed to going forward with a ban on conversion practices, but we want to make sure that when we legislate, that legislation does not inhibit proper, genuine, supportive counselling and guidance as people explore their gender identity or sexual orientation.
As Liberal Democrats, we have been concerned about the lack of a draft Bill on conversion practices, so I am relieved to hear what the Minister has said today. However, given the amount of fear and anxiety that there is among the trans community in this country, can she reassure the House that when the Bill comes forward, it will be UK-wide to overcome the Scottish Government’s withdrawal of their proposals? Further, will the Government consider whether we need fresh legislation to deal with all the issues in the Equality Act that have been raised by the Equality and Human Rights Commission’s interim guidance and the Supreme Court judgment?
The hon. Gentleman will be aware that we are taking forward a number of measures as part of the women’s health strategy. He will also know that as a result of our pilot on women’s health hubs, which have been established in 41 of England’s 42 integrated care systems, we are working to make sure that we are supporting and tackling women’s health, including by shifting care out of hospitals, reducing waiting lists, and continuing to engage with local areas to use the learnings from women’s health hubs to improve the local delivery of services.
Women are waiting up to 10 years for a diagnosis of endometriosis or adenomyosis. Our Women and Equalities Committee report recommended a maximum wait of two years, which is still a long time to live with intense pain and fertility decline, but it would be an improvement. Given that reproductive health issues cost the UK economy £11 billion a year, the sooner conditions are treated, the sooner women can get on with their lives. Does the Minister agree that investing in women’s health is essential, and how is she raising the importance of the women’s health strategy with her colleagues, including the Health Secretary?
I thank the hon. Gentleman for raising this issue. It does affect women and girls more, but I take the points that he raises, and it is important that all people get the support that they need. I look forward to looking closely at his private Member’s Bill.
Time and again, we Conservative Members asked the Government to hold a national statutory inquiry into the grooming gangs scandal. Time and again, Government Ministers insisted that the five local inquiries would be enough, despite a suspected 50 towns having grooming gangs operating in them, as reported by Charlie Peters from GB News. Now, after the Casey review and the announcement of the national commission, what reassurances can the Minister give victims that the 50 suspected towns will be investigated? If a town or city where a grooming gang is suspected to operate refuses to have an inquiry, can the Minister compel the commission to investigate? In other words, do the Government have any accountability whatever?
I am grateful to my hon. Friend for her question. I share her concern about the issue and its impact on young women and girls. That is why the Secretary of State for Science, Innovation and Technology is bringing forward further action to ensure that girls are protected from harm, and why later this year, we will publish updated guidance on relationships, sex and health education to tackle all forms of misogyny and ensure that young men and women can thrive in our country.
I point to page 86 of Baroness Casey’s report, which shows a worrying number of live investigations of cases in which there is an overlap between child sexual exploitation and criminal exploitation. The report notes that a “significant proportion” of cases appear to involve suspects who are claiming asylum. Which Minister is directly responsible for safeguarding our communities, including those housed in asylum hotels? If the Government manage to close asylum hotels, as they claim they will, and individuals move into other accommodation, will any dangers transferred from hotels to the wider community be accounted for?
As the Home Secretary set out on Monday, anyone found to have been responsible for covering up or hiding vile crimes of child sexual abuse must and will be prosecuted. However, the Conservatives had a decade to act—the lost decade that Baroness Casey talked about—and the recommendations from Alexis Jay sat on a shelf without being acted on. This Government immediately brought forward the Children’s Wellbeing and Schools Bill to deliver the biggest upgrade in child protection legislation in a generation—a Bill that the Conservatives opposed.
Before we come to Prime Minister’s questions, I welcome to the Gallery the Speaker of the Assembly of Representatives of Tajikistan.
My hon. Friend is right to talk about the 14 years of failure by the Conservatives. Labour is turning the tide on the housing crisis, and I am proud to announce today our commitment to establishing a new publicly owned national housing bank, backed by £16 billion of new finance. This includes £2.5 billion in low-interest loans for social housing, to help achieve the biggest uplift to social and affordable housing in a generation.
Order. I want to hear the question, and I am sure our constituents want to hear the question and the answer.
The Rwanda scheme never started. Illegal immigrants in Calais said before the election how much they wanted the Prime Minister to get elected because he would help them to get here. When Australia started a similar scheme about 10 years ago, it worked within a few months.
As a consequence of the Government losing control, they now accommodate in asylum hotels and flats growing numbers of illegal immigrants, many of whom crossed the channel. The Home Office’s suppliers are actively offering above-market deals to landlords to get hold of their properties for use by illegal immigrants. In the meantime, hard-pressed young people here are unable to rent or buy. Why do this Government prioritise housing for illegal immigrants above housing for our young people?
I thank my hon. Friend for her question, for the work that she has done with campaigners such as Margaret in their fight for justice, and for mentioning Grenfell, the eighth anniversary of which was not so long ago. We remain fully committed to bringing in a Hillsborough law. The state has failed victims and their families too many times in the past, which is precisely why our focus is now on getting the legislation right. I can assure her that measures will be brought forward as soon as we are confident that they will deliver the justice that victims deserve, and we want to do this at pace.
On behalf of my party, may I associate myself with the Deputy Prime Minister’s remarks about the Air India crash? In a week that we remember the murder of Jo Cox and David Amess, our party’s thoughts are with their friends and families and all those in this House who lost their beloved friends. We also remember those who died in the Grenfell tragedy.
In 2003, we Liberal Democrats were incredibly proud to lead the campaign against the Iraq war—a war in which the UK blindly followed the US in a move that was not backed by the United Nations. In light of reports that President Trump is seriously considering joining the war between Israel and Iran, launching a US strike against Iran’s nuclear facilities, can the Deputy Prime Minister confirm that if President Trump does take such action, today’s Labour Government will not blindly follow the US into war again?
I thank my hon. Friend for highlighting that case. It is not an isolated case; we inherited a really dire situation and there are far too many people that do not have a safe and secure home that meets their needs. My right hon. Friend the Chancellor has announced record funding of almost double the level provided by the previous Government, who ended up handing back the cash for social and affordable homes. Labour’s plan for change is renewing our country and investing in Britain’s future.
(1 week, 5 days ago)
Commons ChamberI am sure that those on the Conservative Benches have an interest in areas of natural beauty as well, and I am sure that the Minister for Housing and Planning will address this point when we discuss the Planning and Infrastructure Bill later today. We take natural beauty and history seriously, and we think that the Bill will be able to do nature recovery and enable us to build the houses that we desperately need.
Order. I remind Members to look at the question on the Order Paper and make sure that their supplementary question is related to it.
If I have understood the hon. Gentleman correctly, he pointed to how a variety of arrangements can be put in place under freehold estates; we need to capture that variety across the country. That is one of the challenges in looking at what measures we might bring forward to reduce the prevalence of such arrangements, and we certainly intend to do that.
The last Government passed the Leasehold and Freehold Reform Act, supported by the then Opposition. Labour said in the King’s Speech that it would go further with reform and quickly. Then, the Minister said that would take the whole of this Parliament. Now, the secondary legislation needed, as well as the consultation pending, mean that leaseholders are unlikely to see any reform quickly. Last week, the Government said that primary legislation may now be needed without implementing the law already passed. Is that not just another example of the Government promising one thing but now flailing around, delaying and breaking key promises they made, while leaseholders across the country suffer?
The hon. Gentleman will be aware of the changes we have made to ensure that there are discounts on business rates for certain businesses this year, with further commitments to come at the Budget. He makes the right point. Of course I cannot announce that outside the Budget, but we will consider those points carefully.
Our high streets and small businesses have been hammered by this Government, with big increases in the cost of business rates and national insurance contributions. Can the Minister tell the House what measures he and the team have put forward to the Chancellor of the Exchequer to help our small businesses and high streets in the spending review?
The hon. Gentleman offers me two opportunities there. First, we talk about challenges on the high street, but I remind the House of the more than a decade of starved demand because the economic policies of the Conservatives and all the impacts that had, followed by—[Interruption.] The stag do on the Opposition Front Bench are making their rattle as usual, but they were all present during that disastrous fiscal event that led to the increased costs that we are still coping with now. The second temptation the hon. Gentleman gives me is the opportunity to resign by leaking details of the spending review here first. Sadly, I will give no succour there.
Order. I will just say that supplementary questions should aim to relate to the original question. This is about funding in Scotland, so I am sure that the hon. Gentleman’s question will be purely about that.
The Minister is right to point out the need for regeneration for towns in Scotland. Last week, the Government agreed in this Chamber to funding for England and Wales. That leaves only one part of the United Kingdom left out: Northern Ireland. [Laughter.] What will be done to ensure that Northern Ireland gets the same as the other three Administrations?
The hon. Gentleman knows that I talk with my counterparts in all the devolved Governments, including Scotland and Northern Ireland, and I will continue to do so. The shared prosperity fund is a sign of our commitment in that direction. We will, I am sure, see future plans shortly.
Coming back to the point that we do need housing, including social and council housing, we have been clear in the changes that we have been making, including in the Planning and Infrastructure Bill, to ensure that that infrastructure is there, because that is one of the barriers leading to people rejecting some proposals because the transport connectivity and the facilities are not available. Therefore this Government are committed to ensuring we get the right type of development that supports local need and also, importantly, has the infrastructure alongside it.
The Deputy Prime Minister has repeatedly stuck to her commitment that 1.5 million homes, including social homes, will be built over the lifetime of this Parliament despite everybody knowing that she will not achieve it. And today, the latest people to say she will not are Savills, who have forecast that the true number she will build over this Parliament is just 840,000, and that means fewer social homes too. Now that she has emerged from the dark rooms of the Treasury to capitulate to the Chancellor, will the Deputy Prime Minister confirm that more social homes and 1.5 million new homes will be built by the end of this Parliament: yes or no?
The Opposition cannot have it both ways: one way they are saying we are failing to build the homes; and the other way they are saying we are concreting over the green belt. We said that planning reforms alone will not deliver our ambitions, which is why we have committed to delivering the biggest increase in social and affordable house building in a generation. And I say to the hon. Member, as I have said to many people in my life, underestimate me at your peril.
Jess in my constituency had all her possessions and bags put on the pavement outside the hotel and was locked out of her bedroom with her baby by hotel management—shocking behaviour on their part. With £2 billion being spent by local authorities on temporary accommodation, would it not be better to have a national target for the number of social homes that are going to be built? What steps will the Government be taking to set such a target?
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.
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?
I absolutely agree with my hon. Friend. The Government are committed to strengthening the system of developer contributions to ensure that new developments provide the necessary infrastructure that communities expect. We will set out further details in due course. Earlier I mentioned the changes to the national planning policy framework that were announced in December, and we will also support the increased provision and modernisation of various types of public infrastructure.
As the Secretary of State has said, Saturday marks the eighth anniversary of the Grenfell tragedy. As she knows, I can confirm to her that I will work constructively with her and her colleagues to deliver remediation, building safety and the best outcomes for local communities. The previous Government committed over £5 billion for remediation; will the Secretary of State confirm that the spending review will continue to provide such financial support? Will she also confirm that she will meet the previous Government’s pledge to co-fund with the Royal Borough of Kensington and Chelsea the renovation of the Lancaster West estate, and that the £85 million from central Government needed and promised to finish the works will be provided?
I do not blame my hon. Friend for trying, but for good reason we established an independent expert advisory panel—the new towns taskforce—to make recommendations to Ministers on the location and delivery of new towns. The taskforce will submit its final report to Ministers in the coming months.
Residents in Wellington, in Castlemoat Place in Taunton and in Agar Grove—homebuyers—are just some of a sample who have come to me, raising the scandal of house builders not properly finishing the buildings they have created, leaving them unsafe. What steps will the Minister take to bring forward measures to ensure that house builders repair and make safe their properties urgently, without people having to wait years?
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.
I welcome the enhanced protections for tenants in the Renters’ Rights Bill, but data from The Londoner shows that for London tenants, there is only one enforcement officer per 7,500 private rented homes. Given the new enforcement burdens that the Bill places on councils, will the Minister please ensure that they have the resources to protect private tenants?
(1 month, 4 weeks ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
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.
I call the Chair of the Housing, Communities and Local Government Committee.
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?
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.
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?
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.
I take that as congratulations from the Speaker of the House of Commons on the promotion of Leeds United, so thank you very much, Mr Speaker. [Hon. Members: “Hear, hear!”] That seems to be the most popular thing I have said in the House for some time.
I am proud to be a Unite member and a trade union member. I remember the 2009 Leeds bin strike, when the Conservative and Lib Dem-run council tried to cut the bin workers’ pay by up to £6,000. A three-month strike followed that was ultimately successful. Having listened to the points made by Members from across the Chamber, I would say that it is always wrong to castigate trade unions as being the enemy within. They are an important part of our civil democracy. It is not union officials who called this strike—or any strike—but trade union members, so here Unite the Union means the bin workers. It is really important that we do not allow trade unions and trade unionism to be demonised in this dispute, or any other.
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.
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?
(2 months, 2 weeks ago)
Commons ChamberMy hon. Friend raises an important issue. The newly established Building Safety Regulator is crucial to upholding building safety standards, but I acknowledge that its operation is causing delays in handling applications for some building projects. She will be aware that in February, the Government allocated £2 million to the BSR to accelerate the processing of applications. We are working closely with the regulator to support the plan for improved delivery, and we will continue to keep its performance under review.
The Government’s much-lauded policy of building 1.5 million new sustainable homes has been doomed from the start of this Parliament, and we now have that confirmed, with the Chancellor saying last week that only 1.3 million homes will be delivered by the end of this Parliament. But it is worse than that. Office for Budget Responsibility figures show that only 1.06 million homes will be built in England, which is 500,000 fewer than the Government’s target, and around 200,000 fewer than the last Conservative Government built in the past five years. Will the Minister confirm that the goalposts have moved, and that Labour will not meet its target for housing in this country?
The hon. Gentleman has done a great deal of cross-party work in support of housing. We have a consultation in place. I am pleased to say that I have met him on a couple of occasions, and he will be aware that we are working hard and at pace to tackle the underlying challenges. There are 164,000 children in temporary accommodation, and rough sleeping has gone up by 164% since 2010. We are determined to take action to deal with the challenges, but that will require concerted work. The Deputy Prime Minister is leading the interdepartmental taskforce on homelessness. I look forward to continuing to work with the hon. Member for Harrow East (Bob Blackman).
Quite rightly, the Government said in their manifesto that they wanted to reduce homelessness and rough sleeping, but instead there has been a 20% increase in rough sleeping—at its highest in London but rapidly climbing in other parts of England, such as by 67% in Derbyshire. Homeless Link states that the Budget removed £50 million to £60 million from the sector due to national insurance increases and has called for a reset on homelessness funding. Where is the Minister’s long-term plan for reducing homelessness? Will she commit to seeing a fall in homelessness in the next year?
We have been very clear that we are going to consult on a new decent homes standard that applies to both the social rented and private rented sectors, and I would welcome the right hon. Member’s engagement when that consultation is published.
Despite the announcements referred to earlier, the Building Safety Regulator is now advising applicants to plan for 16 weeks to clear gateway 2. That is holding up a disproportionate number of social homes, including 100 in the constituency of my right hon. Friend the Member for Kingston and Surbiton (Ed Davey), and it is much longer than is required for planning permission. What steps will the Government take to reduce the wait back down to eight weeks, as it was?
My hon. Friend is exactly right—those two challenges can be taken on together. Creating opportunities for people to live in local communities brings footfall and reduces crime, which are both excellent things. She has heard what my hon. Friend the Minister for Housing and Planning has said about our support for house building. We stand ready to support her community to make sure they can build houses in their town centres.
The Opposition broadly support the Government’s proposals in the plan for neighbourhoods, which carries on the excellent work started under the previous Government. However, how will the proposals to diversify the base of consultees to prioritise the voice of trade unions—which, by definition, are found mainly in large public sector and corporate organisations—not drown out the voice of the small businesses on which our town centres depend?
We are changing the way in which local growth is done in this country, exactly for that reason. The previous Government wanted to subject communities to beauty parades for short-term funding, according to criteria decided by them. Our funding plans, which will come forward at the spending review, will be long-term, allocative, and based on what the hon. Gentleman’s community wants rather than what Ministers want.
I agree with the Minister that the Government have changed how growth is happening in local government, because apart from the massive growth in the numbers of people rough sleeping and the massive growth in piles of rubbish uncollected in Birmingham, there is little evidence of economic growth at the local level. Does the Minister acknowledge that when we compare band D equivalents, Conservative councils consistently charge much lower council tax than Labour or Lib Dem ones? The best way for our constituents to ensure local growth is to vote Conservative at the council elections.
I do not begrudge my hon. Friend his attempt, but he will have to wait for the spending review outcomes to receive an answer to his question.
The effects of the Birmingham bin strike have been declared a major incident, they are a national embarrassment, and with 21° temperatures forecast for later this week, they will become a public health emergency. While Labour Members in Birmingham are busy campaigning for an airport in Pakistan, the Secretary of State is unwilling to visit the city or take on Unite. Is that because of the tens of millions of pounds that her party receives from Unite, or, indeed, because of the £10,000 that she received for her own election campaign?
Local authorities already have a range of powers to bring empty homes back into use, but I am more than happy to meet my hon. Friend to discuss this specific issue in more detail.
Last month, I was in a field near the East Carr estate in Hull. With the River Humber in the distance, the field lay submerged under water and sat clearly below sea level. Residents told me that the field acts as a barrier between their homes and the water, and they were really worried that the planned development, which is in the Hull local plan, will leave them with flooded homes. Can the Minister reassure me, and residents in Hull and other low-lying communities, that the Government will ensure that the land use framework for determining areas for development will consider flood risk management and the delivery of sustainable drainage systems?
The hon. Gentleman does very well to go from zero to 100 pretty quickly on the issue, but let us step back from the immediacy of it. Clearly, we want all parties to be in the room negotiating the underlying pay, terms and conditions dispute that is at play. To be absolutely clear, there has to be a red line. This cannot stray into potentially compromising the equal pay settlement that has been agreed, so that that all begins to unravel. Bear in mind that that has already cost the local authority £1 billion. We support them, and we want people in the room. The deal has to be a sustainable one that will hold.
As the Minister will be aware, nutrient neutrality has had a big impact on Norfolk, holding up many homes and planning applications. The launch of the Norfolk nutrient mitigation fund has helped to make a difference, but we need more environmental solutions. Will the Minister update us on what else we will be doing to address nutrient neutrality, so that good homes and growth can be unlocked in our local area?
(3 months, 2 weeks ago)
Commons ChamberAgain, I totally sympathise—I think this is why people have resisted some of these planning applications a lot of the time. That is why our Government are absolutely committed to ensuring, through the revised national planning policy framework, that infrastructure, including GP surgeries, is available when new housing is built.
We know that through the section 106 agreement progress, the planning system is very good at levying funds for new NHS facilities, but NHS Property Services has not always been effective at building those facilities out on time. What assurance can the Secretary of State give the House that across Government there will be an appropriate focus on ensuring that NHS Property Services delivers the facilities that planning has secured?
As the hon. Gentleman will know, we intend to bring into force this year the provisions of the Leasehold and Freehold Reform Act 2024, which is designed to drive up the transparency of service charges so that leaseholders can challenge them more easily if they consider them to be unreasonable. We intend to strengthen the regulation of managing agents, imposing minimum standards in relation to, for example, qualifications. I would say to any managing agent—and I know that Members across the House have been holding them to account—that they should improve their performance in the light of the changes coming forward in the near future.
I thank the Minister for his comments over the weekend—we really do need to ensure that we ban new leaseholds—but, as he knows, leaseholders have been promised this many a time before, and many will be going to sleep tonight with only a little sigh of relief because those bills will continue to come. The Minister mentioned the White Paper; can he tell us what the status of existing leaseholders will be when the measures to end leasehold are finally introduced?
The highest pub in the Yorkshire wolds, the Wolds Inn at Huggate, is a great success story—Mr Speaker, I would be delighted to buy you a pint there the next time you find yourself on the right side of the Pennines—but, like many pubs in my constituency, it faces a crippling rise in non-domestic rates at a time when margins are very tight. Local pubs are not just businesses but much-loved community assets, so will the Minister reverse this tax grab and start supporting the great British local?
Well, if it is intended to be a tax grab on pubs, we are not doing a very good job of it, because when the permanent scheme comes in, 99% of pubs that are under the £500,000 threshold will benefit from it. We absolutely recognise the importance of our community pubs in propping up the community and giving them places to meet, and to the economy and the good jobs that they provide.
I thank my hon. Friend for the question. We have inherited a massive challenge, and we are working at pace to tackle these issues, so that people can live safely and securely in their home and do not face such high costs.
As my hon. Friend the Member for Mid Buckinghamshire (Greg Smith) has highlighted, simply putting people out of their homes is not a solution to fuel poverty. Given that the figures very clearly show that the cost of the upgrades in many cases massively exceeds the financial benefit to either the tenant or the landlord, can the Minister give the House her personal assurance that this objective is realistic and achievable?
I would say to the hon. Gentleman that they already are. There are very strict requirements in place when it comes to the allocation of social housing. As I am sure he knows well, local criteria can be imposed—I am not sure that his council has them in place—in terms of the amount of time someone needs to be resident in an area before they qualify for social rented housing.
Every day, another family contact my office because they are homeless, and they are placed in a hostel, with no functioning kitchen and no private bathroom, miles away from their children’s schools. I am sure that other hon. Members can say the same. What is worse is that the placements cost councils at least three times as much as permanent social homes. So-called affordable homes are of no use to these families at all. At the same time, new homes are being rejected by registered housing providers because the standards are not high enough. What are the Government doing to progress the future homes standard, so that the homes being built are not rejected by registered home providers, who say that the homes are not good enough for them, and will have to be retrofitted?
I will not comment on individual councils, other than to say that this is why local government reorganisation is so important. In too many parts of England, the two-tier system is not working for local people. The two-tier premium means that a two-tier system is a more expensive way of delivering public services, and most members of the public have no idea which council is responsible for delivering which service. It is therefore right that we go through this reform. My hon. Friend is absolutely right to say that, in the end, things have to work for local people. All the matters that he covered are on our mind.
The Minister mentions local government reorganisation. On 5 February, the Deputy Prime Minister stated:
“We are postponing elections for one year, from May 2025 to May 2026”—[Official Report, 5 February 2025; Vol. 761, c. 767.]
but on 17 February, the Minister, in a written parliamentary question, said that
“new unitary…government will be established or go-live in 2027”
or 2028. Will the Minister confirm that these elections are not being postponed, and that they are, in fact, being cancelled for up to three years, meaning that councillors will serve terms of up to seven years? Will he also confirm that the Deputy Prime Minister may have unintentionally misled the House, and will he correct the record?
I fondly remember—at least, I think I do —our consideration of the Levelling-up and Regeneration Act 2023. [Interruption.] The hon. Member for Mid Buckinghamshire (Greg Smith) remembers it, too. At every sitting of the Public Bill Committee, my hon. Friend the Member for York Central (Rachael Maskell) said that York had never produced a plan, so I was overjoyed when I heard from the leader of York council this morning that it had had that success. Of course, making these things real involves really good planners, which is why we are pleased to have made a further £46 million available for planning capacity.
We note that the Government have chosen not to take forward the Grenfell report recommendation relating to certification bodies on materials safety. Given the previous Minister’s failure to reply to my questions on the new use of European standards in respect of fire performance, will the new Minister assure the House that we can be absolutely confident that the fire safety performance regulations in place are clear, robust and effective?
My hon. Friend is absolutely right to raise that issue. We acknowledge that there has been criticism of some homes delivered through permitted development rights—particularly those that enabled commercial buildings such as offices and shops to change use to residential—and the Government are committed to keeping development rights under review.
I well recognise the situation that my hon. Friend describes, but I also recognise the reluctance of local authorities to take on substandard housing estates that have been built. We have decided to consult this year on options to reduce the prevalence of private management of estates of the kind he describes. We will also, importantly, implement new consumer protections for homeowners on private estates in the Leasehold and Freehold Reform Act 2024.
Homelessness stats published last week show that rough sleeping has increased for the third year in a row and is now 91% higher than in 2021, yet the Vagrancy Act 1824 has not been repealed and rough sleeping is still a criminal offence. In July 2024, the Minister was asked for a progress report and advised that consideration of relevant legislation was needed, but it is now more than three years since Parliament voted to repeal the Act. Will she now give us a date when that will come into force?
Order. It is totally unfair when a Member is speaking to block the vision of the Chair.
These include unacceptably long delays for repairs and exorbitant costs at Greenmount Court in Smithills, despite spiralling fees, poor transparency and little to no communication from the agent. What steps is the Minister taking to deliver a fairer deal for existing leaseholders and to hold poorly performing managing agents to account?
(4 months, 2 weeks ago)
Commons ChamberWith permission, I would like to update the House on devolution in England and local government reorganisation.
The No. 1 mission of this Government is to unlock growth in our regions and put money back in the pockets of working people. Every one of our proud towns and cities has a vital contribution to make to growth, but for all the promises of levelling up, when the rubber hits the road, Governments’ first instincts have been to hoard power and hold our economy back. Since I launched the devolution White Paper in December, I have been overwhelmed by the excitement from communities wanting to join the devolution revolution. With the measures I will announce today, if all goes to plan, over 44 million people will see the benefits of devolution, which is close to 80% of the country. That is more progress in a shorter amount of time than under any Government in Britain’s history.
Today, I am delighted to announce six new potential devolution areas that will be part of our devolution priority programme with a view to mayoral elections in May 2026. These places will get a fast-track ticket to drive real change in their area. While devolution can sound techie, the outcome is simple. It is a plan for putting more money in people’s pockets, a plan for quicker, better, cheaper transport designed with local people in mind, and a plan for putting politics back in the service of working people. Today, I can confirm to Members across the House that the places on the devolution priority programme are: Cumbria; Cheshire and Warrington; Greater Essex; Hampshire and Solent; Norfolk and Suffolk; and Sussex and Brighton. Mr Speaker, a seventh area that is somewhat familiar to both of us, Lancashire, is already deciding its mayoral devolution options, and we will look at its proposals in the autumn in parallel with the priority programme.
When I became Deputy Prime Minister, I promised that this Government would change the future of the north of England so that northerners would no longer be dictated to from Whitehall. The programme I announce today will see the north of England covered by devolution, but this programme is for all of England, as is shown by the significant progress in the east and the south. Today, legislation comes into force creating mayoral devolution in Greater Lincolnshire and in Hull and East Yorkshire, which are electing their first mayors this May, as well as foundational devolution in Lancashire and in Devon and Torbay.
Every place can see a benefit from devolution, and we want to move quickly to realise these benefits within the first term of our Government. Whether it is more regular bus services, more affordable housing or the simple fact that local people will have a local champion with regional influence, mayors have a proven track record of delivering growth and higher living standards. But we are clear that where a mayor is not using their powers to benefit their residents, the Government will have the tools to ensure delivery. We will create strong accountability measures in the English devolution Bill to ensure that mayors deliver the housing, transport and infrastructure that their residents need.
But devolution is only as strong as the foundations it is built on. Despite the funding injection from this Government, councils of all political stripes are in crisis. A decade of cuts and sticky-plaster politics has left councils in a 14-year doom loop. That is why we are fixing the foundations of local government by reforming funding and focusing on prevention. I know how vital local government is for achieving our Government missions. I also know that reforming local government means tough choices—choices that the Conservatives were simply too unwilling to take.
Councillors of all types, including district councillors, tell me that the two-tier system is not working, so alongside our wider reforms, this Government are committed to making simpler, more efficient and clearer structures so that residents can access good public services without eye-watering price tags. These kinds of reforms will not happen overnight, but we are determined to deliver fairer funding to end the postcode lottery so that everyone gets the support from public services that they deserve. That is why today I will be issuing a legal invitation to all 21 two-tier areas to submit proposals for new unitary councils. Letters and the accompanying written statement will set out the requirements for these proposals.
New unitary structures will be the right size to achieve efficiencies, improve capacity and withstand financial shocks, but I am clear about the need for flexibility when reorganisation goes hand in hand with mayoral devolution and when it is coupled with ambitious plans for housing growth, so these proposals will be developed with effective local engagement and dovetail with devolution arrangements. I want to reassure Members that this process will involve extensive engagement with local communities and Members of this House.
Turning to the timings of the local elections in May, for certain areas a significant amount of work is needed to unlock devolution and deliver reorganisation. For this reason, some areas requested to postpone their elections until May 2026. The Government’s starting point is for all elections to go ahead unless there is a strong justification for postponement. The bar is high, and rightly so. I am agreeing to only half of the requests that were made. After careful consideration, I have agreed to postpone elections only in places where this is central to our manifesto promise to deliver devolution.
We are not in the business of holding elections to bodies that will not exist, and where we do not know what will replace them. This would be an expensive and irresponsible waste of taxpayers’ money, and any party calling for those elections to go ahead must explain how this waste would be justifiable. To that end, I have agreed to postpone local elections in East Sussex and West Sussex, in Essex and Thurrock, in Hampshire and the Isle of Wight, and in Norfolk and Suffolk. I have also agreed to a postponement in Surrey, given the urgency of creating sustainable new unitary structures, to unlock devolution for this area. I intend to move to elections to the new shadow unitary councils in all these areas, as is the usual arrangement for local government reorganisation.
We are postponing elections for one year, from May 2025 to May 2026. There is a well-established precedent, as the Conservative party knows all too well. North Yorkshire, Cumbria, Somerset, Buckinghamshire and Northamptonshire all had their elections rescheduled by the previous Government. I will table the relevant secondary legislation when parliamentary time allows, and local elections will take place as scheduled in all other areas. I make it clear that all two-tier areas should be making plans to move to simpler structures, regardless of election delays. The invitation will be sent to all two-tier areas, with a timetable taking into account that their election has been delayed.
I know that the devolution journey may not always be comfortable for politicians in Whitehall, but it is not supposed to be. After all, we are undergoing a generational power shift from Whitehall to the town hall. We have already seen a huge amount of good will from Labour Secretaries of State who are willing to give up newly won powers for the sake of our towns and cities. The Secretaries of State for Energy Security and Net Zero, for Transport, for Work and Pensions for Science, Innovation and Technology have led the devolution charge, and now the Prime Minister and I ask Members to do the same.
I commend this statement to the House.
(5 months ago)
Commons ChamberI do not think it will be a revelation for Members to hear that a change of Government often means a change of approach to what have been shared views and shared problems. I believe that the last Government deeply wanted to tackle extremism in all its forms across the country, and we share that desire. Where we differ is on the approach taken by the Department.
In last year’s written ministerial statement—this, I have to say, is something with which I simply cannot agree—the previous Secretary of State, for whom I have a lot of respect, chose for the Department to assume a great deal of responsibility for the issue, essentially on the part of the entire Government. I do not think that is the right approach, for very good reasons. Counter-extremism should, I believe, be the fundamental purview of the Home Office, not least because of the Home Office’s access to confidential information that is often not available to the MCHLG. The approach that we have chosen in the new Government is to have a cross-Government but Home Office-led counter-extremism sprint, which will lead in due course to a counter-extremism strategy that shapes the Government’s way forward. That is a different approach to what is, I believe, a commonly understood problem.
I cannot accept the hon. Gentleman’s characterisation of the previous process as robust. Let us be honest: it was not used. The previous Secretary of State made a detailed written ministerial statement and set out a system that could have led on this issue. He named some organisations, but it was very clear in the written ministerial statement that he was not prejudging any process for those organisations, and he subsequently did not use the process. I would question the hon. Gentleman’s attachment to a previous process that the previous Government chose not to use.
On the point about openness, I have answered multiple questions from the shadow Secretary of State and the shadow Minister. I will continue to do so, and we will be as open as we possibly can be. Similarly, with regard to the steering group, I do not think we have made that information public, but I am sure there is no problem in doing so. I will make sure that it is available.
At a time when we are seeing such an increase in religious hate crime, including Islamophobia and antisemitism, we all have a duty in this House to be careful about the language we use. I hope that the Government will look at their language, because it is vital for community cohesion that we are careful and do not unintentionally inflame tensions.
There are some really critical issues to consider, not just in this country but around the world. The Minister said that he is looking at the definition of extremism, and at changing measures put in place by the previous Government. Will he outline whether the Government will consult on any new definition? If we are honest and look back, there was a lack of consultation by the previous Government.
I am grateful for the Chair of the Select Committee’s question. Language is important, and it is reasonable and right that our constituents expect us to be robust with those who choose to challenge and undermine democracy and the basic principles that guide our society, but also that we do not use our very privileged platform to give succour to hateful ideas and prejudices. Indeed, one thing that we know about the changing nature of terror is that individuals are taking cues from organisations that stop short of the threshold for inflaming terrorist-type behaviours. They are using that as encouragement, so we all have a responsibility to be measured in our response. With regard to the engagement with the Home Office, we want to make sure that anything that comes out of the cross-Government sprint and into the strategy can be bought into and owned by communities across the country, so there will be engagement.
As we know, the world is a fast-moving and scary place, and people who feel disempowered and isolated often turn to the internet. They are often vulnerable, and their reliance on the internet for everything in their world puts them at even greater risk. We must work with our community leaders to make the most of the information that they hold, and get early notice of problems.
What worries me is that if we make assumptions and do not work with our communities, there is a risk of authoritarian decision making that affects all of us. What consultation has there been with communities on the changes, and what additional burdens might fall on local authorities following changes to how the Government work? Furthermore, with such extreme things taking place online, especially on the platforms of social media giants based across the pond, what are the Government actively doing to unite faith and cultural leaders, environmental groups, industries and people across generations to foster unity and stop extremism across the whole spectrum?
(5 months ago)
Commons ChamberWe have set out another £500 million for the affordable homes programme and we will set out further requirements as we get to the spending review.
The increase in housing delivery that the Secretary of State is committed to requires a 50% uplift across the board in housing numbers, yet according to the House of Commons Library, urban and major conurbations have seen an increase of 17% while mainly rural areas are seeing an average increase of 115%. How is that fair?
Meur ras, Mr Speaker. Cornwall’s allocation from the shared prosperity fund is good news and well needed. The Government are reworking the outcomes for the shared prosperity grants, and councils such as Cornwall are awaiting the memorandum of understanding for the grant before they can make agreements with providers. Ongoing schemes need certainty, as employees with three-month notice periods are relying on the contracts, and the old SPF scheme expires on 31 March. Will the Secretary of State confirm—
Order. That must obviously be connected to Northern Ireland when we look at it.
I am grateful to the hon. Gentleman for his kind points. I have a strong personal enthusiasm for Northern Ireland—its potential is huge. I speak frequently to Ministers in the Northern Ireland Executive and will continue to do so. As part of the Prime Minister and Deputy Prime Minister’s reset of our relationship with the devolved Administrations, we meet them regularly and plan together so that our investments and their investments get the best value. I will continue to do that, and I look forward to working with the hon. Gentleman as well.
We share the Government’s ambition on local growth, but Companies House is reporting the highest level of business closures in 20 years. Will the Government commit to publishing an assessment of the impact that their national insurance rises, business rates rises and changes to business property relief are having on local growth plans?
With respect, the hon. Gentleman is conflating two entirely separate issues. One is reorganisation, which will take money away from the back office and put it on the frontline where people can see the benefit of that investment, but to be absolutely clear on rural services, the provisional settlement that was laid out ensures that primarily rural councils get an average increase of 5%, and no council sees a net reduction in its income levels. That is our commitment to rural communities, and it is firm.
I refer the House to my entry in the Register of Members’ Financial Interests as a serving councillor on Bournemouth, Christchurch and Poole Council.
Many councils have already undergone significant reorganisation, from moving to shared services right the way through to full unitarisation, and the costs of that have always been underestimated. Although transformation leads to lower long-term revenue costs, we know that councils everywhere are teetering on the edge, so finding funds to pay for reorganisation, transformation and redundancies will be problematic. The mayoral authorities add an extra complication, so can the Minister confirm that funding from central Government will be provided to fully cover both devolution and local government reorganisation, so that councils do not have to factor extra costs into their 2025-26 and 2026-27 budgets or risk reducing local services further?
My hon. Friend makes a really important point about the impact on children and young people. It is an absolute scandal that nearly 160,000 children are in temporary accommodation, and we are determined to ensure that the Government’s long-term strategy addresses the underlying issues affecting youth homelessness. We are working with mayors, councils and key stakeholders, including in the charitable sector, to get us back on track to ending homelessness.
St Mungo’s has reported a 27% rise in rough sleeping in London under this Government compared with the same period under the last Government. Will this Government commit to removing the ringfences that they have introduced around the homelessness prevention grant, heeding councils’ calls to give them back the flexibility they need to get rough sleepers and homeless households into accommodation and avoid the cost shunts they impose on council tax payers?
I agree that remediation has been too slow. This Government are laser-focused on speeding up the remediation of dangerous buildings, and I encourage the Scottish Government, for which this is a devolved matter, to increase their efforts, as we are, to up the pace of remediation in Scotland.
Does the Secretary of State agree that everyone should be treated equally and be seen to be treated equally before the law, including planning law?
All social housing tenants deserve to live in decent homes, to be treated with fairness and respect and to have their problems quickly resolved. Under the Regulator of Social Housing’s safety and quality standard, housing associations and councils must provide an effective, efficient and timely repair service for their homes, including setting timetables for completion and clearly communicating with residents. As my hon. Friend knows, we will also introduce Awaab’s law and a new decent homes standard to set the minimum quality that social homes must meet.
(6 months ago)
Commons ChamberThe Government were elected on a mandate of change, to deliver a new era of economic growth and national renewal, and reverse the years of failure and decline that we inherited. Through the tough decisions that we took in the Budget, we prevented a return to austerity while protecting working people’s payslips. The plan for change that the Prime Minister unveiled earlier this month is the next stage on the journey of reform—a plan to kick-start growth and get Britain building again, putting more money in people’s pockets and delivering 1.5 million new homes, good jobs and opportunities for all.
Just this week, we announced our plans to rebuild and reform local government, and to empower local leaders to deliver that change so that the benefits are felt in every community. We cannot do this alone. We need strong, empowered local government to work with us, as equal partners in a new relationship. Public service is our collective duty, but after a decade of cuts, fiscal mismanagement and the failure of the previous Government to fix the foundations, it is a fact that councils of all political stripes are in crisis. The broken local audit system in England and the scandal of the unacceptable backlog that led to the recent whole of Government accounts disclaimer further illustrate the dire straits of the system and the legacy that we must reconcile.
The Prime Minister gets this. As a former director of a critical public service, he knows that reform is vital, and so does the Deputy Prime Minister, having worked on the frontline as a home care worker, seeing the human impact every single day. I am proud to have public service and local government in my blood too. That is why I take the responsibility to lead the Government’s work to rebuild the sector with the seriousness that is due and the urgency that is required. The work has already begun, and today marks a major milestone in our mission to rebuild local government and put councils on a firmer financial footing, as we publish the provisional local government finance settlement for ’25-26 and launch our consultation on these proposals, alongside our consultation on wider funding reform.
In the autumn Budget, the Government announced £4 billion of additional funding for local government services, of which £1.3 billion would come in the settlement presented today, but we know that we need to rally. That is why I am announcing over £700 million of additional grants. That includes over £200 million of extra funding for social care since the policy statement. I also confirm that the new funding includes £515 million that will be made available in the final settlement to support councils with the increase in employer national insurance contributions. The package in the provisional settlement will enable local government to invest in the vital services that people rely on, making £69 billion available—equivalent to a 3.5% real-terms increase in councils’ core spending power when compared with ’24-25. I confirm that this will increase even further in the final settlement.
Today is the start, not the end. Taken together, the additional funding made available in this settlement and the Budget will deliver over £5 billion of new funding for local services over and above local council tax. Alongside that, every authority in England will receive a one-off share of £100 million currently held in the business rates levy account.
Together, we must ensure that public investment is used for long-term prevention and reform of local public services, rather than expensive short-term crisis responses, which often have much worse outcomes. We are determined to end the cycle of failure that we have seen for too long, and we will provide certainty by ensuring that no authority will see a reduction in its core spending power after accounting for council tax flexibilities next year. We are also ensuring that taxpayers’ money goes to where it is needed the most. That includes an immediate down payment: a highly targeted £600 million recovery grant, funded through repurposing the rural services delivery grant and the services grant, ahead of broader reforms to a fairer funding system later. Today, we are launching a consultation on local authority funding reform starting in ’26-27.
There will always be tough decisions to make, but we are determined to ensure that we fairly reflect the real drivers of cost, including demand, the need for public services, and importantly, the ability of councils to raise revenue locally. That is why we are making up to £3.7 billion of extra funding available through this settlement to help local authorities to meet the spiralling costs of social care. That includes an additional £200 million uplift to the social care grant, which I confirm today, taking the total increase to the grant for ’25-26 to £880 million. That includes the new children’s social care prevention grant, first announced in the policy statement, which I today confirm will be uplifted in a further final settlement by £13 million, taking the total to £263 million. That is the first step in our national roll-out of transformed family health services, as we double settlement investment in preventive children’s social care services to over £500 million next year. I place on record my appreciation, and that of the Deputy Prime Minister, for the partnership and determination shown by the Treasury, the Education and Health Secretaries, and their Ministers and officials.
We will not do as the previous Government did and impoverish councils, and those who need support the most, then parade them around for public shaming. That helps no one. We must work together to get councils back on their feet financially. The principle stands that it is for local authorities to decide at what level they set their council tax, and they are accountable to local taxpayers; however, we are committed to keeping taxes on working people as low as possible, and we have to strike a balance, so we will maintain the previous Government’s policy, as set out in the Office for Budget Responsibility forecast, of setting a 5% council tax referendum principle, made up of a 3% core principle and a 2% principle for the adult social care precept. That means that residents will have the final say over increases that go beyond that.
We have put in place a framework for 2025-26 to support those councils in the most financial difficulty. Similar to the approach taken by the previous Government, we will consider requests for bespoke referendum principles on a case-by-case basis. We expect the changes outlined today will give the respite needed and clarity on the direction of travel, but we also know that 14 years have hit hard and, for some, the recovery grant and the other measures will still mean that additional support is required. We will put taxpayers and the impact on working people at the forefront of our decisions, and we will look carefully at councils’ individual circumstances—for instance, how much they charge in council tax and the strength of their plans to protect vulnerable people on low incomes.
To recognise the impact of council tax on households across all councils, we are consulting with the sector on changes to payment instalments, which will allow annual council tax bills that are spread over 10 months to move to a 12-month schedule by right, helping household budgeting, spreading the cost for working people and mirroring how most household bills are paid.
Ensuring local government can deliver for working people in the long term requires a root-and-branch reform of the way that councils are funded. That is why through the 2026-27 settlement—the first multiyear settlement in 10 years—we will introduce an up-to-date assessment of councils’ needs and resources. Today we are launching a consultation on the objectives and principles of those changes. We will consider representations from all corners of the sector to develop our understanding of the drivers of need, including deprivation, and of the impact in rural areas on service delivery—fairness for all delivered once and for all. We will redouble our work to shift power away from Westminster into the hands of those communities who know their area best. We will reduce the myriad of funding pots that councils have to contend with, giving them the flexibility they need to deliver local and national priorities.
That effort is underpinned by our strategy to streamline and simplify the local audit system in England. Local communities deserve transparency, accountability and the effective early warning system that local audits provide. We are taking immediate action by replacing the broken and dispersed system with a focused, proportionate and value-for-money local audit office, ensuring that the system is fit for purpose. This is a long-term challenge, and it will take hard work and dedication to achieve, which is why we are wasting no time in fixing the foundations, getting the audit backlog under control, overhauling the system for the long term, returning to secure multiyear settlements, and bringing forward ambitious plans for devolution, growth and reform of public services, while improving standards, accountability and efficiency. We are building for the long term to get local government fighting fit, legal and decent, and as equal partners to rebuild our country from the ground up, and ready to play its part in delivering the Government’s missions through our plan for change. I commend the statement to the House.