Local Government Funding

Neil Carmichael Excerpts

Monday 6th December 2010 Commons Chamber

[Angie Bray (Ealing Central and Acton) (Con)]

Hon. Members will be pleased to know that I will keep my remarks short.

Given where the country finds itself financially, it would have been strange if local government had been immune to the tough choices that the coalition Government have been forced to take to cut the deficit and to get the country back on track. Decisions on local government spending are indeed tough, with a 7.5% cut in spending each year between now and 2014. However, as many colleagues have said, the cut may well be lower due to other revenue streams.

Although the impact is painful, the coalition has taken decisions to make it as fair as possible. Councils up and down the land will be supported in freezing council tax in 2011-12 through additional funding equivalent to the revenue from a 2.5% rise in council tax. That honours a coalition agreement promise to freeze council tax, even in the face of the worst debt crisis since the second world war. It is also an essential ingredient of the coalition’s policy on fairness, because it helps the lower-paid and pensioners in particular, who have seen their council tax double since 1997. The average band D council tax bill is now nearly £1,500, which frankly beggars belief.

As with so many issues, we still do not have a clue how the Labour party would approach this difficult funding issue. It has to get over its denial about the financial problems that face this country. It continues simply to complain and scaremonger, yet it never tells us how it would deal with the problem, except to imply that somehow it would be able to do so without having to take any difficult decisions. More likely, it is not coming clean with us about the plans that we know it had, because it does not want to talk about them any longer. We are where we are because of years of overspending without a care in the world by the Labour party. Now the pain starts as we rebuild our finances. At least Government Members know what we have to do.

The most important reform that the coalition is introducing in local government is more localism. One way in which the Government are trying to alleviate the difficult measures is to free funding from being overly ring-fenced. That will allow local councils to use their revenue with much more flexibility, so that they can meet local needs in the way that they know best.

[Neil Carmichael (Stroud) (Con)]

The debate has focused on two issues. Obviously, the cuts are the primary issue, but there is a secondary one. Does my hon. Friend agree that the opportunities that the coalition Government are giving local authorities to be imaginative and even radical in reforming their services and their approach to local government will pave the way for exciting, diversified and genuinely local authorities?

[Angie Bray]

I thank my hon. Friend for that contribution. Of course, I agree that it is a great thing to get local authorities back to doing what they do best, which is to work closely with their local residents to ensure that they give them what they need.

As hon. Members have said, many local authorities across the country are considering how they can take out costs in their back rooms by working together to run services. My hon. Friend the Member for Halesowen and Rowley Regis (James Morris) mentioned Kensington and Chelsea borough council getting together with Westminster city council and Hammersmith and Fulham council to do just that. Those boroughs happen to make up my previous London assembly seat and they are all, I should add, Conservative-run. They are doing what local councils should be doing—making efficiency savings in bureaucracy where possible, rather than hitting front-line services.

My local, Labour-led council, Ealing, has been quick to announce plans for a range of cuts, including cutting day care centres, a child protection officer and more than 50% of park rangers. Enviro-crime officers are also to be cut, from 23 to 12, yet it is happy to find £3 million for new computers at the town hall and, quite disgracefully, it is to continue funding full-time trade union officials to the tune of £250,000 a year.