Local Government Financing Debate

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Marcus Jones

Main Page: Marcus Jones (Conservative - Nuneaton)

Local Government Financing

Marcus Jones Excerpts
Tuesday 29th June 2010

(13 years, 10 months ago)

Commons Chamber
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Marcus Jones Portrait Mr Marcus Jones (Nuneaton) (Con)
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First, I congratulate my fellow west midlands colleagues, my hon. Friends the Members for Wolverhampton South West (Paul Uppal) and for Dudley South (Chris Kelly), on making excellent maiden speeches.

I have listened intently and with great interest to the debate. Opposition Members seem tireless in their criticisms of the measures that the coalition Government are having to make. I am afraid that the debate has been a little like a stuck record—technology that we were quite used to in the 1980s, and which they seem to hark back to. At that time, I remember that many small and medium-sized businesses occupied our industrial estates in my constituency. That was the case until the mid-1990s, but unfortunately after 13 years of Labour Government many of the industrial units that I remember that used to be full with people in employment now stand empty. I hope that the coalition Government will put that right by refreshing and rejuvenating the private sector.

Opposition Members make no apology for mortgaging our country to the hilt and they still seem to want to keep spending and spending. They talk about reducing the deficit, yet we still hear no tangible sign of how Labour would get us out of the black hole in the public finances that they spent many years putting us into.

Not only were the previous Government profligate with the public finances, but they were also profligate with their constant diktat to local government. Local councils have been subjected to the constant and never-ending grip of the previous Government, obsessed with performance management, inspections, ring-fencing and general micro-management.

Let me touch on the performance management regime operated by the previous Government. It spiralled completely out of control, with councils at times being asked to report on matters over which they had little or no influence and in which they certainly had no decision-making power. Under that regime, by 2008 a typical council was spending £2.6 million a year reporting performance information to central Government. That additional burden also cost front-line services. For example, essential services such as bin collections have been reduced. That has all happened in spite of the fact that council tax virtually doubled under the previous Government, not to mention the spiralling cost of fees and charges to the public—a practice that was actively encouraged under the previous Government, particularly by Lord Prescott, about whom we have heard quite a bit today.

The previous Government should have used the line “less for more”, such was their contempt for local government and communities across the country. Reducing core services and doubling council tax is the legacy of 13 years of Labour Government. I need only look at my local council, Nuneaton and Bedworth—a council on which I was privileged to serve, and where I saw at first hand examples of how the heavy-handed clunking fist of the previous Government affected local government and the ability of local councillors to represent local people and make local decisions.

While it was under Labour control, the council was given a comprehensive performance assessment. Many Members who have been in local government will probably have enjoyed that experience. The Audit Commission gave the council a weak rating. On advice, the council responded by embarking on a two-year process of CPA voluntary engagement. That wasted thousands of hours of officer time, employed a number of additional consultants at a substantial cost to the authority and caused additional layers of bureaucracy that were added to the council’s structure. What were the outcomes for local people? They were negligible and certainly not proportionate to the resources expended over several years.

I have no doubt that the comprehensive area assessment will be just as onerous, as my hon. Friend the Member for Rugby (Mark Pawsey) pointed out. I therefore welcome the decision made by my right hon. Friend the Secretary of State to abolish the CAA, which, I have no doubt, will reduce the inspection burden and free up vital resources to deliver services. My right hon. Friend has made an excellent start and my hope is that he will go further and work with the Local Government Association, which has suggested today how £4.5 billion of savings could be achieved through:

“Reducing the regulatory burden on councils and pruning out the maze of Quangos, middlemen, bureaucratic funding streams and audit arrangements in order to protect front line services on which the most vulnerable depend.”

I also welcome the decision by the coalition Government to announce further removal of ring-fencing. The planning delivery grant is a prime example of how ring-fencing often fails, with councils often having almost to invent projects on which to justify spending grants. Again, my local authority was no exception when it was under Labour control. I recall it spending nearly £70,000 of planning delivery grant on audio equipment for the council chamber to improve the facilitation of council meetings. Until that point, and for some time thereafter, the council did not even hold planning meetings in the council chamber. When it did, the new audio system did little to add value to the planning process or to aid the expeditious construction of new property and houses in the area.

My experience tells me that councils will cope and adapt to the changes that the coalition Government are being forced to make. Many councils have already had to learn to work smarter in the past few years and are working with other authorities to deliver services in a smarter way. That can work especially well. My local authority has shared services such as payroll, IT, building control and procurement successfully with other local authorities. No doubt, councils up and down the country will be looking into putting shared arrangements in place. That is an extremely sensible and cost-effective move.

To conclude, I am glad that there appears to be such clear water between the Opposition side and the Government side. We acknowledge the tough times ahead, we are dealing with our debts head-on, we acknowledge that things will be difficult for local government in the next couple of years and we intend to allow councils to make their own decisions based on local need. We intend that local councillors will be freed from the central Government straitjacket that has strangled local government for so many years, so that they can do what they think is right for local people. That approach is diametrically opposed to the stance of Opposition Members, who are burying their heads in the sand regarding the debt that they are responsible for. They also seem to want the Government to keep our councils in their pocket—to keep them in a straitjacket and dictate how and where they must spend their money regardless of priorities. The very motion that they have put forward this evening explains that.

I know which approach I would prefer if I were still a council leader. I also know, from my dealings with local government and from my contact with fellow Conservative, Labour and Liberal Democrat councillors, which they would prefer—more autonomy for local authorities, not less, and I am sure that this coalition Government will provide that. That is why I support the Government’s amendment.