Merseyside: Funding of Local Authorities

Debate between Margaret Greenwood and Philip Hollobone

Tuesday 8th February 2022 Westminster Hall

[Mr Philip Hollobone (in the Chair)]

I remind Members that Mr Speaker encourages everyone to observe social distancing and to wear masks.

[Margaret Greenwood (Wirral West) (Lab)]

I beg to move,

That this House has considered funding of local authorities on Merseyside.

It is a pleasure to serve under your chairmanship, Mr Hollobone. I begin by thanking Mr Speaker for granting this debate, and I also thank Members from across Merseyside for attending today. I look forward to hearing their contributions.

According to analysis by the National Audit Office on selected main revenue income sources for local authorities, in 2010 Government funding for local authorities in England was just over £34 billion. Over the course of the next decade it decreased steadily, and by 2020 Government funding to local authorities in England was just over £8 billion. The cut of funding from £34 billion to £8 billion is staggering, and goes a long way to explain why we have seen the widespread erosion of public services. It represents a cut of around 76.5%. In other words, local authorities are being expected to continue to provide public services when they are receiving a fraction of the money they used to receive from central Government. No wonder our communities are feeling it.

If we look at Merseyside in the context of those National Audit Office figures, we see that the Government funding cuts that its local authorities have suffered are even higher than the England average. In my own local authority of Wirral, in 2010 the council received just over £266 million in Government funding, but by 2020 that figure was down to just over £40 million—a reduction of around 85%. Colleagues will be only too aware that it is a similar story elsewhere in Merseyside, and I am sure that we will be hearing details of the impact of those cuts.

I ask the Minister to listen closely to the figures that I am about to share. In Knowsley, the same National Audit Office figures show that in 2010 the local authority received more than £243 million in Government funding; that figure was down to just over £35.6 million in 2020—a reduction of around 85.3%. In Liverpool, in 2010 the local authority received more than £560 million from the Government, but by 2020 that figure was down to just over £75 million—a reduction of around 86.6%. In St Helens, in 2010 the local authority received more than £151 million, but in 2020 it received just over £16 million—a reduction of around 89.4%. In Sefton, in 2010 the local authority received more than £203 million, but 2020 saw it receive just over £16.7 million. That is a drop of around 91.8%.

Although local authorities have generally kept 50% of business rates revenues raised locally since 2013—and there is a pilot scheme to keep 100% of them in Wirral—that is nowhere near to making up the shortfall created by Conservative Government cuts. For example, Wirral Council received over £110 million less in annual income in 2020 than it did in 2010. Similarly, Knowsley received £116 million less, Liverpool over £209 million less, St Helens over £60 million less, and Sefton over £94 million less. Those staggering and brutal cuts by central Government are really punishing our communities. Political decisions taken by Conservative Governments since 2010 have had the effect of running down and forcing the closure of local public services.

Let us remind ourselves what it is that local authorities deliver. They provide and look after our libraries and leisure centres. They maintain our roads, streets, parks, and our open spaces where people relax, exercise, walk their dogs and where children play. They license taxis, the sale of alcohol and the movement of animals. They provide support to local businesses and chambers of commerce, stimulating the local economy. They manage planning processes, are responsible for public health, bin collection and waste disposal, free school meals, welfare support and advice and adult learning. They are responsible for trading standards and ensuring the safety and standards of the products that we buy. They are responsible for social services, safeguarding children and ensuring that vulnerable adults, including people with dementia, are cared for and protected, whether in their own home or a care home.

A decade of cuts to local government has resulted in £8 billion being lost from adult social care budgets, and many vulnerable people have been left without the support that they need. Some 400,000 older and disabled people are on council waiting lists for care, and there are more than 100,000 staff vacancies across the sector. That is a truly damning indictment of this Conservative Government. In short, local authorities, the services they deliver and the public realm they maintain are fundamental to our society and the way we live. If we want our councils to deliver good-quality universal public services, they need to be funded properly.

The Conservative party presents itself as the party of tradition, but it is anything but. The cuts it has imposed on local authorities since 2010 undermine our way of life and our traditions, and are pulling away the foundations of our communities. I am sure that we will hear from colleagues across Merseyside about what these cuts mean to their constituencies.

I want now to talk specifically about Wirral, where, as I outlined earlier, the local authority saw an 85% reduction in Government funding between 2010 and 2020, and received around £110 million less in overall income in 2020 than in 2010. The authority has been told that it must find savings of £20 million in its budget for 2022-23. Not doing so could lead to Government intervention. As a result, the council has been forced to make proposals to meet these financial constraints. The proposals are wide ranging and, if implemented, would have serious implications for communities in Wirral. The proposals include the permanent closure and demolition of Woodchurch leisure centre and swimming pool.