Local Government Funding
Rishi Sunak Excerpts(7 years ago)
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
It is a pleasure to serve under your chairmanship, Mrs Main. I congratulate the hon. Member for Colne Valley (Thelma Walker) on securing this debate. I join her in paying tribute to all those working in local government up and down the country, including her husband, for the terrific work they do to make our communities better places to live.
It may surprise hon. Members to hear that I agree with much of what has been said. First, the sheer range of things we have heard illustrates the importance of what local government does and the impact on all our residents’ and constituents’ lives. I also agree that local government has been dealing with a very difficult financial climate these past few years, for reasons we do not need to rehash in the short time we have. This Government took the right decision—the moral decision—to get our public finances back in order, and local government has played a very important role in making that happen. It deserves enormous credit for the way it has done that—for finding better, cheaper ways to do things while maintaining high resident satisfaction—but I appreciate that that journey is closer to its end than its beginning.
One thing we may disagree on, though, is the talk of cuts. We heard a lot about cuts and a lot of selective quoting of statistics. The simple truth is that the resources available to local government to spend on core services will be £1 billion higher this financial year than last financial year. That represents almost a 3% rise in the cash available to local authorities up and down the country.
Alex Cunningham
The Minister says there will be £1 billion more to spend this financial year, but how many billions have been cut since 2010?
Rishi Sunak
I acknowledged right at the beginning of my speech the difficult financial climate that local government has suffered over the last few years. I am not trying to pretend it has not—I acknowledge that. The point is that the Government are absolutely listening and responding. A billion pounds more is almost a 3% rise in funding. That is more than the economy is growing by, and it is more than inflation.
[Sir Christopher Chope in the Chair]
Jim McMahon
The Minister is correct that councils have £1 billion more to spend on public services today than they did this time last year, but that is because of the pressure that has been applied to council tax payers. People are paying more and more council tax for less and less in the way of public services. By the way, the data shows that, in England, there have been cuts of £4.5 billion to neighbourhood services and £3.5 billion in real terms to transport services. That is the cost in the community—the £1 billion goes nowhere near covering that. Surely he knows that.
Rishi Sunak
It is nice that we are now talking about whether the increase in funding is enough. I am glad we have moved the debate on. It is also good to hear Labour Members talking about the importance of council tax. We believe in keeping people’s council tax bills down. They will be 6% lower in real terms this year than they were when this Government came into office, and they have risen slower than under the last Labour Government, when they increased at an annual rate of almost 6%. This Government are committed to keeping council tax bills low, and it is important that we are mindful of that.
Many points were made, and I want to try to address as many as I can in the time available. I would like to do so through the framework with which I look at local government, given the sheer range of things it does. Local councils do three important things: support the most vulnerable in our society, drive economic growth in their areas and build strong communities. I believe very much that this Government are backing them in doing all three of those vital tasks.
First, as we heard, local government helps the most vulnerable in our society. Local authorities are the first to reach out those who fall on hard times, and I am delighted that our recent settlement provides them with increased funding to do exactly that. Councils have told this Government that the most acute pressure they face is in adult and children’s social care, so in the recent settlement and Budget, the Government responded with an additional £650 million for adult and children’s social care this year. That includes £240 million to ease winter pressures and the flexibility to split the remainder between adult and children’s services as local preferences dictate.
We also champion authorities that put innovation at the heart of service delivery. We heard a lot about money, but the outcomes that that money delivers are just as important. We should be focused not just on what goes in but on what comes out. The Government will focus relentlessly on ensuring that taxpayers’ hard-earned money is well spent.
On children’s care, about which we heard a lot, a recent National Audit Office report noted the enormous variation in performance and cost among local authorities. That is nothing to do with the political colour of those authorities; it is just down to differences in leadership and management practice. That is why it is important that the Government are backing practices in Leeds, Hertfordshire and North Yorkshire with an £84 million fund, and taking their models, which deliver higher-quality outcomes at lower cost, across the country.
The hon. Members for Colne Valley and for Stockton North (Alex Cunningham)—and indeed the hon. Member for Croydon North (Mr Reed), who is no longer in his place—rightly mentioned the importance of early intervention, in which I strongly believe. I have been a relentless champion of the troubled families programme since I have had this job. He is not here anymore, but the hon. Member for Croydon North will have seen the Secretary of State make a very significant speech last week about the progress of that programme and how it is transforming children’s lives on the ground, getting people into work and keeping people out of the criminal justice system.
Knife crime is also important. That is why a £10 million extension was recently made to the troubled families programme, specifically to support families against youth crime. That funding is now benefiting 21 areas that bid into the programme to tackle that vital issue. The hon. Gentleman talked about funding running out. That is because we are at the end of a spending review period. Of course, in the spending review, I and the Government will be batting very hard for a successor programme to the troubled families programme. The Secretary of State committed to that last week, and I wholeheartedly support it.
I am also passionate about technology, which has the potential to be transformative. I recently launched an innovation fund to help councils embrace the digital revolution. Technology helps deliver services better on the ground and find ways to save money. Together with the LGA, we are developing a tool to help councils to benchmark, analyse and drive their performance. I believe there are considerable opportunities across local government to improve lives, save money and transform services, and we will pursue them all relentlessly.
The second thing local authorities do is drive economic growth, ensuring that every part of our country can prosper. Ultimately, that is the only sustainable way to fund the public services that we have heard so much about and we all care passionately about, and it is the only way to improve living standards in our communities. There may well be fundamentally different points of view on that. The Government believe that, rather than being funded by central Government handouts, local authorities should be empowered and rewarded for their entrepreneurship. Indeed, even Labour Members expressed different points of view about the degree of autonomy local government should have to raise its own money and about over-reliance on things such as business rates—the single largest way for local areas around the world to raise income. It is all very well saying we want more local autonomy, but we must understand what that means in practice.
Our business rates retention scheme does exactly that, putting power in the hands of local authorities to reap the benefits of their hard work. This year, on top of the £46 billion I mentioned, local authorities will retain an additional £2.4 billion of business rates growth. The 15 new business rates retention pilots across the nation, from Northumberland to Southampton, demonstrate this Government’s commitment to backing councils’ ambitions for their local economies.
Rachael Maskell
Will the Minister also acknowledge the challenges that business rates create? What will the Government do to address those?
Rishi Sunak
I am happy to do that. I am glad that York and Kirklees—the areas represented by the hon. Lady and the hon. Member for Colne Valley—joined my local area to be part of one of those business rates pilots. That will generate an extra £34 million, which our councils have worked together to decide how to deploy in our area. That is central Government backing our area’s ambitions. The hon. Member for York Central (Rachael Maskell) is right to mention business rates. The change in retail shopping habits is a pressing issue. There is a range of measures, from small business rates relief to rural rates relief and the new retail relief, giving retailers a foot—
Thelma Walker
I hear what the Minister is saying, but the reality is that high streets are emptying. Companies such as Marks and Spencer are pulling out of the centre of Huddersfield in Kirklees. Well-known names are pulling out of our high streets. What is the answer to that?
Rishi Sunak
Again, I am happy to say that it is not my job or the Government’s job to dictate to people how they should shop. Part of what is changing habits is part of why people are changing how they shop. It is not the Government’s role to dictate to them.
Rishi Sunak
No, I will finish my point. Where the Government do have a role to play is in ensuring that the tax system is in line with modern practice. When it comes to business rates retail relief, which gives retailers a third off their business rates bill for the next two years, is the latest in a long line of measures that mean there will be £13 billion of business rates reductions by the end of this Parliament. That means a third of all businesses will pay no business rates.
Jim McMahon
That is a fair point, but the Minister will recognise that that is nowhere near enough. Because of the threshold that is in place, a local Marks and Spencer would not benefit from the type of relief that is being offered. He must accept that, unless we deal with international taxation and business taxation in the round rather than just having business rates coupled to local government spending, it will never be fair, and we will still be in a situation in which a cleaner or a server in Starbucks pays more tax than Starbucks itself. How can that be sustainable?
Rishi Sunak
The idea that this Government are not doing that is an old chestnut. This Government have brought forward more ways to clamp down on international tax than any previous Government and £14 billion extra has been collected. This Government put in place the first diverted profits tax and at the last Budget announced a digital services tax, which we will put in place in line with international peers.
Rishi Sunak
I am conscious of time, so I will make progress. If those peers do not act, then we will act unilaterally. The Government are addressing the point.
I agree with the hon. Member for York Central that high streets are important. That was also mentioned by the hon. Member for Stockton North, who talked about his high street, which I know as it is near my constituency. This Government understand the importance of high streets in creating living, breathing communities. That is why a £675 million high streets transformation fund was announced at the last Budget for all local authorities. I encourage Members to talk to their local authorities and bid for the fund. It is there to fund transformational projects that revitalise high streets and comes on top of the Treasury business rate reductions. The Government are agreeing with and backing local authorities to ensure that high streets remain the beating, vibrant hearts of communities. We are in agreement and there is financial support, through tax reductions and this fund, to support high streets. However, shopping habits are changing and retailers, high streets and planning authorities have to adapt. Business rates are only one part of the answer.
The last thing to touch on is building strong communities. We have talked about high streets and other points. Ultimately, local authorities are making people more proud of the places where they live, partly by building houses that people want to call home, whether through the new home bonus or through the lifting of the housing revenue account borrowing cap. Again, the Government are responding to what local government has asked for and delivering it for them.
Alex Cunningham
The Minister is talking about devolution and the responsibility of others. The Mayor of Tees Valley has just spent up to £90 million on a loss-making airport. Does the Minister agree that that money would have been better invested in transport infrastructure that encourages investment and creates real jobs? The airport has not created any new jobs or new flights.
Rishi Sunak
I think the Mayor of the Tees Valley, Ben Houchen, is doing a fantastic job of ensuring that the voice of Tees Valley is heard in this place. There has been considerable investment in developing the steelworks, the development zone and tax reliefs, which has been widely welcomed. I know that because my constituents are excited to see the rebirth of Durham Tees Valley airport. I know the airport well and I am delighted that it will now have a bright future under the stewardship of the Conservative Mayor of the Tees Valley.
We heard from the hon. Members for Poplar and Limehouse (Jim Fitzpatrick), for Bolton South East (Yasmin Qureshi) and for York Central about Government funding formulas. There is lots to say about that, but the question was raised about why homelessness is not included in the formula. The simple reason is that the amount of homelessness funding that goes through the local government finance settlement is a very small percentage of the total amount—from memory it is only £175 million. The remainder of the homelessness funding, which is several hundred million pounds, has a dedicated formula specific to it. Obviously, if that changed and a future decision was taken to roll that homelessness money into the overall local government settlement, it would demand a formula of its own. I am happy to give that reassurance.
Deprivation is in the formula and in all the areas where it makes a significant difference. Deprivation has little to do with the cost of maintaining a road or a flood defence, for example, and therefore it is not factored into those areas. Of course, it is factored into all the areas that we heard about, including adult social care and children’s social care. In answer to the hon. Member for York Central, we are working in conjunction with all those Departments to develop formulas that they are happy with.
In conclusion, we believe in local government. As we look forward to the spending review, I and the Department will be making a strong case that local government is funded properly, to do all the things it does today, as well as those it will do tomorrow. Beyond money, we will ensure local government has the power, the flexibilities and the devolution that we heard about from the hon. Member for Barnsley Central (Dan Jarvis). Indeed, the Government are supporting that devolution with a considerable amount of money. That is the future for local government that central Government are backing. I will continue to listen to local government, learn from it and push its case in this Government.
Winstanley Estate Regeneration
Rishi Sunak Excerpts(7 years ago)
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
It is a pleasure to wind up the debate and I congratulate the hon. Member for Battersea (Marsha De Cordova) on securing it. I welcome the chance to respond to the points she made.
I start by recognising that a home is more than simply bricks and mortar. A home provides safety, comfort, financial security and a community for residents. That is why this Government are building the homes our country needs so everyone can afford a safe, decent place to call their own—and we are helping more people on to the housing ladder.
I note the points that the hon. Lady made about the Winstanley Estate, but I have to tell her that because a formal planning application has been submitted to Wandsworth Council for the Winstanley and York Road Estate development, it would not be appropriate for me to comment on it on the Floor of the House, so as not to prejudice the Secretary of State should the application eventually end up in front of him. Although I cannot answer her questions precisely, I hope she will bear with me, because she raised some broader points about affordable housing that I would be very happy to address.
Building more affordable homes, including those for social rent, is a priority for the Government. Since 2010, we have delivered more than 407,000 new affordable homes, including more than 293,000 affordable homes for rent. We also recognise that a mix of affordable tenures is required to meet the needs of a wide range of people. That is why, through the affordable homes programme, we have made £9 billion available for affordable home ownership, affordable rent and social rent.
The hon. Lady talked about the importance of councils building, and alongside the £9 billion we have lifted the housing revenue account cap to help them build more. That should enable councils to deliver up to 10,000 homes a year in the short term.
To turn to Wandsworth in particular, I am pleased to say that it appears to be a very high-performing borough in terms of overall housing delivery. It is achieving numbers of new homes significantly in excess of its local plan targets and it has made significant and welcome commitments to delivering new housing stock through the HRA. I pay tribute to its leadership and energy in providing the homes its community needs.
Although I cannot answer the hon. Lady’s specific question about the nature of the affordable housing in this development, so as not to prejudice the planning application, it is worth putting it on record that the new development will have 35% of the building for affordable units.
Marsha De Cordova
Does the Minister agree that, as it stands, the proposal for the Winstanley and York Road development does not meet the London plan standard?
Rishi Sunak
It would not be appropriate for me to comment on whether any particular planning application meets any standard, but 35% is in excess of the local authority target of 33% for affordable housing developments. Indeed, there is a tripling of housing supply overall and an increase in affordable housing in the development in question. Of course, that will be decided in a formal planning application.
We talked about estate regeneration, and I agree with the hon. Lady that estate regeneration, done the right way, can create new and improved homes and communities for the people who live there. The Government published a new national estate regeneration strategy in December 2016 and, as she said, estate regeneration works best when the community is at the heart of the project. Residents must be key partners in any regeneration scheme and they should have opportunities to participate from the start, developing the vision, design, partner procurement and delivery.
Marsha De Cordova
I am pleased that the Minister recognises that residents need to be at the heart and the centre of all regeneration. Does he therefore agree that ballots should be carried out on all estate regeneration projects going forward?
Rishi Sunak
I am a localist, and although the Government provide overall guidance and direction for local authorities it is of course right that they determine how exactly to engage best with their communities in each and every circumstance. My understanding, reading through some of the material, is that in this instance there has been extensive engagement and consultation with the residents in question by the local authority.
We, of course, as a Government, have set out our expectation that estate regeneration should have the support of a majority of the residents whose lives will be affected. My team have been informed by Wandsworth Council that the majority of Winstanley Estate residents who responded to the options consultation chose a more extensive regeneration approach involving the demolition and development, refurbishment and new community facilities that we heard about.
It is also important to set out clear commitments on how the regeneration process will work and the housing options available. We believe that all existing tenants should have the option to return to the estate, and I am pleased to say that, as was acknowledged by the hon. Lady, Wandsworth Council has said that all council tenants will be offered an alternative home at social rent within the regeneration area. I am sure that that is warmly welcomed.
In addition, the estate regeneration national strategy sets out our expectation that disruption to residents should be minimised. Indeed, Wandsworth Council has informed my officials that a phased approach is being undertaken at the estate so that, where possible, residents are moved only once, from their current home to their new home. Furthermore, Wandsworth Council has stated that resident homeowners will also be able to take part in an equity share scheme. It is important that these home purchase options are made available, because residents should be given the opportunity to change tenure.
Although I cannot answer specifically every question posed by the hon. Lady, given the planning application that is in force, I hope she sees that I agree with her that local regeneration can deliver better-quality homes; additional homes, both for affordable rent and for market sale; and improved facilities for the community, as I believe she acknowledged is happening in this case. Good regeneration requires the strong leadership of local authorities and the engagement of residents. It is right that that happens and I am sure that she will make sure it continues to happen throughout the process. Of course, this approach does benefit from central Government support, which many communities have received, not least with the expanded affordable homes programme and infrastructure funding.
On that note, I thank the hon. Lady for bringing these matters to my attention and that of the House, and wish her well as she ensures that the planning application proceeds with all these considerations being borne in mind.
Question put and agreed to.
Draft Non-Domestic Rating (Rates Retention and Levy and Safety Net) (Amendment) and (Levy Account: Basis of Distribution) Regulations 2019
Rishi Sunak Excerpts(7 years ago)
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
I beg to move,
That the Committee has considered the draft Non-Domestic Rating (Rates Retention and Levy and Safety Net) (Amendment) and (Levy Account: Basis of Distribution) Regulations 2019.
It is a pleasure to serve under your chairmanship, Sir Henry. I love being Minister for local government and I love local government finance, but no one ever wrote a sonnet about the business rates retention system. The technical nature of the draft regulations gives us a good idea why not; I pay tribute to my officials for preparing some very helpful explanatory notes to translate them into plain English.
The draft regulations will do two very simple things: provide the basis on which we will distribute the levy account surpluses, and make changes to the regulations that give effect to the business rates retention scheme—not least to create the 75% retention pilots in the forthcoming financial year. Let me take those matters in turn, beginning with the levy account surplus.
Under the rates retention scheme, authorities may be entitled to a safety net payment if their business rates income falls below a certain level. The cost of such safety net payments is met by charging authorities a levy of up to 50% of any business rates growth that they achieve. In the past, we have also top-sliced an amount from the settlement to supplement the levy income and ensure sufficient funding from which to make safety net payments. Since 2013-14, we have top-sliced a total of £255 million that would otherwise have been distributed to authorities through the settlement. Effectively, safety net payments are therefore paid for by the local government sector; central Government simply act as an agent to collect and distribute the sums between authorities.
The top-slice and all the levy and safety net payments are made into or from a levy account that is kept by central Government. In line with the legislation, any surplus in the levy account at the end of the year belongs to the sector and is to be distributed to local government or carried over to the next year. At the end of 2018-19, the levy account will show a surplus of £188 million. As we announced in the 2019 local government finance settlement, we have decided that £180 million of that surplus should be distributed back to the sector. Legislation requires us to set out in regulations the basis on which the surplus should be distributed. The draft regulations therefore provide that all authorities should get a share of the 2018-19 surplus, in line with their shares of settlement funding in 2013-14—the first year of the rates retention scheme, and the first year in which we top-sliced sums from the settlement.
I am pleased to tell the Committee that we fully consulted local authorities on the basis of the distribution at the time of the provisional settlement in December. Fully 93% of respondents supported the proposal, including all the relevant local government bodies, such as the Local Government Association, London Councils, the District Councils’ Network, SIGOMA—the Special Interest Group of Municipal Authorities—and the Society of County Treasurers.
Let me turn to the changes that we are making to the day-to-day administration of the rates retention scheme. The running of the scheme is dealt with by means of a number of sets of regulations, the most important of which are the Non-Domestic Rating (Rates Retention) Regulations 2013 and the Non-Domestic Rating (Levy and Safety Net) Regulations 2013. Those regulations provide, among other things, for the percentage shares of business rates to be paid by billing authorities to central Government and major precepting authorities, and for the way in which the levy and safety net payments are to be calculated.
The draft regulations will make a few changes. They will ensure that the relevant shares of business rates income and the calculation of levy and safety net payments for 2019-20 and beyond reflect the Government’s decisions to create 75% retention pilots for 2019-20; make changes to the structure of local government in Dorset, Suffolk, Somerset and Northamptonshire; change certain values for the Isles of Scilly used in connection with the scheme; and change the way in which levy and safety net payments are calculated to reflect the higher compensation given to local authorities as a result of improvements and changes made to the small business rate relief scheme.
This is a highly technical set of regulations but most of the provisions simply give effect to changes previously approved by this House, either in the settlement or in other regulations. They ensure that authorities get the sums from the rates retention scheme that they are due. I commend the regulations to the Committee.
Rishi Sunak
As always, I welcome the comments of the hon. Member for Oldham West and Royton, which are always thoughtful and well informed. On this matter, however, I disagree with him. We will, of course, have more general debates on the right way to fund local government as we approach the spending review. I look forward to those discussions, which are slightly out of the scope of these regulations.
The crux of what the Committee is talking about today is the creation of 15 new business rate retention pilots. That is 15 new parts of the country where local authorities can keep 75% of the growth in the business income that they generate, rather than 50%, as in the normal system. That is central Government empowering local government to drive growth in their areas and to be rewarded for their efforts by keeping the proceeds of that growth.
Some 122 local authorities will benefit, including those of many Members present. Cumulatively, the extra money that local government will be able to keep will be around £490 million, when the 15 pilot areas in London are added together. Add that to the five existing 100% devolution areas that the Government have already created, and that is an additional £143 million. That is £633 million of incremental funding that the local government system is keeping as a result of driving growth in their areas.
That is what we are about on this side of the House: empowering local government to make decisions, to keep the proceeds of that activity and, in doing so, to provide a better community for their local residents. We are here today to implement that. I am pleased that the hon. Gentleman will not divide the Committee, and I thank him for his thoughtful comments.
Question put and agreed to.
Oral Answers to Questions
Rishi Sunak Excerpts(7 years ago)
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Julie Elliott (Sunderland Central) (Lab)
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
This Government have recognised the pressures facing adult social services and have provided councils with access to an additional £10 billion of dedicated funding for adult social care for the three years up to 2019-20.
Thelma Walker
I thank the Minister for his response. However, 96% of all local authorities told the Local Government Association that there is a major national funding problem in adult social care. Demographics are changing and demand is growing. What are the Government doing to provide long-term sustainable support to local authorities such as Kirklees Council, so that they can deliver vital services to our most vulnerable citizens?
Rishi Sunak
I thank the hon. Lady for her question. In the short term, £1 billion of extra funding for social care services was announced in the Budget. In the longer term, the Department of Health and Social Care will soon outline its Green Paper and a longer term sustainable settlement. However, the answer is not just about the amount of money that we spend. Her council is a fantastic example of providing good outcomes for social care by using taxpayer resources prudently. Just last week, it was named a top 10 council for social care.
Julie Elliott
The Princess of Wales Centre dementia day-care facility, which is based in the neighbouring constituency of my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) but serves the whole of Sunderland, recently announced that it will close in June, partly due to the cut in local government funding. What will the Minister do to help to support my constituents and those of my neighbour before the extra funding becomes available? Will he meet me and my colleagues to discuss the matter?
Rishi Sunak
I would be happy to meet the hon. Lady and her colleagues or, indeed, her local council. Obviously, as she just heard me say, the Budget announced an extra £1 billion for social care, which her local authority will be able to use on its own priorities, perhaps including the example that she raised.
Bob Blackman (Harrow East) (Con)
Thank you, Mr Speaker. Honours were even on Saturday.
I congratulate the Minister on what he has done on adult social care, but one problem is that many people are asset rich but cash poor, and early intervention is required to prevent those people from degrading. What can he do to encourage local authorities to intervene early so that people live a healthier, longer life?
Rishi Sunak
As ever, my hon. Friend makes an excellent point. He is right about the importance of early intervention, whether it is with young families and children or people who are older and frail. The Government recently announced an increase in the disabilities facilities grant, which does exactly what he says and helps people proactively to adapt their homes so that they can stay independent for longer. That is an example of the prevention work that he mentions, and he is right that we should focus on that in future.
Andrew Bridgen (North West Leicestershire) (Con)
Will the Minister join me in commending the excellent work of Conservative-controlled North West Leicestershire District Council? By building the new homes that our country needs and attracting business, investment and jobs, it has managed to freeze council tax since 2010 and it has pledged to freeze council tax for a further four years, if it is successfully re-elected on 2 May.
Rishi Sunak
I praise North West Leicestershire District Council, which I know well. My hon. Friend is a well-established champion of the council and he is right to highlight its focus on creating a pro-growth culture in its area, using the tools at its disposal to drive economic growth, keep taxes low for its taxpayers and provide high-quality local services.
Dr Sarah Wollaston (Totnes) (Ind)
Has the Minister read the letter to the Prime Minister—it was sent last week but published over the weekend—from Health for Care, which is a new coalition of organisations that speak passionately about their view that social care is on the “brink of collapse”? Will he meet me to discuss the coalition’s concerns, the report published by the Health and Social Care Committee, which I chair, and the Housing, Communities and Local Government Committee, our findings and the work that we did with the Citizens’ Assembly?
Rishi Sunak
I praise the work done by both Select Committees in producing some options for the social care Green Paper, and I know that they are being actively considered, as they should be. To the hon. Lady’s broader point, her characterisation is perhaps a little unfair, because good things are happening in social care. The recent publication of the delayed transfer of care statistics showed that they have halved since the peak of a couple of years ago, which shows that good progress is being made.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Bridget Phillipson (Houghton and Sunderland South) (Lab)
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
The hon. Lady will be aware that the recent settlement confirmed a real-terms increase in the resources available to local authorities. The Government responded to pressures faced by councils in the autumn Budget and supported financial sustainability with more than £1 billion of additional funding across this year and next.
Mr Speaker
Order. Before I call the hon. Member for Houghton and Sunderland South (Bridget Phillipson), we are very short of time so I hint that the hon. Members for Morley and Outwood (Andrea Jenkyns) and for Nuneaton (Mr Jones) could usefully seek to take part in the exchanges on this question, if they were so inclined. It would work perfectly well.
Bridget Phillipson
Since 2010, Sunderland City Council has been forced to make cuts of more than £290 million, yet the announcement today of the so-called stronger towns fund will see only £105 million for the whole of the north-east region put together. Given that our communities will be hit hardest by this Government’s Brexit plan, does the Minister seriously expect us to be grateful for this announcement, and does he expect us to support another decade of Brexit-driven austerity and decline?
Rishi Sunak
I gently point out to the hon. Lady that the towns fund that she talks about has the highest per capita allocation exactly to her area, and it is something that she should be welcoming for her constituents. Beyond that, the only way sustainably to provide and fund the services that we care about is to drive economic growth, efficiency and innovation. I am glad that her council participated in our digital innovation programme, and that 100 other local authorities are benefiting from our business rates pilots to keep more of their economic growth in their local community.
Andrea Jenkyns (Morley and Outwood) (Con)
Rishi Sunak
I know that the Secretary of State will be making a more detailed statement on the towns fund later when I am sure that he can address my hon. Friend’s specific question. This is a separate process from the fair funding review, which is, I know, something that all colleagues are interested to hear. That process is regarding ongoing spending and that will be done through the spending review later this year.
Sir Vince Cable (Twickenham) (LD)
Will the Minister say how the financial sustainability of local government is helped by what amounts to negative rates support grants, where councils are paying in more to central Government than they get back?
Rishi Sunak
Perhaps the right hon. Gentleman was not here for the recent local government settlement. It is exactly because of the threat to sustainability that this Government eliminated negative RSG, which is something that the sector had asked for and we were pleased to meet that concern at the recent settlement.
Mr Marcus Jones (Nuneaton) (Con)
Rishi Sunak
We take funding for county areas extremely seriously, and it is of course important that the new funding formula accurately reflects needs brought about by changing demographics on the ground. I can assure my hon. Friend that I will continue to work with him, the County Councils Network and others to ensure that our new formula is fit for the future.
Chris Philp (Croydon South) (Con)
Damien Moore (Southport) (Con)
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
I commend my hon. Friend for championing his constituents. I do agree that town councils can empower local communities. Southport electors can petition Sefton Council to be given their own town council through a community governance review, and I know he will lead them in doing exactly that.
Dr Roberta Blackman-Woods (City of Durham) (Lab)
A recent report from Shelter states that permitted development is a totally
“unsuitable method of solving the housing crisis”,
and a Guardian piece at the weekend gave an example of permitted development rights flat conversions that are smaller than tiny hotel rooms and have no natural light and no communal space. The Government are presiding over a new generation of slum development. When are they going to deliver the properly planned, good quality, safe and healthy homes that our country and communities desperately need?
Alex Cunningham (Stockton North) (Lab)
Rishi Sunak
I agree with the hon. Gentleman about the importance of prevention and early intervention, which is why the Government have funded the troubled families programme by almost £1 billion over this Parliament. It is doing fantastic work, working with some of the most vulnerable children in our society, enabling them to stay out of care and out of harm’s way.
Andrea Jenkyns (Morley and Outwood) (Con)
Draft Local Government (Structural and Boundary Changes) (Supplementary Provisions and Miscellaneous Amendments) Order 2019
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
I beg to move,
That the Committee has considered the draft Local Government (Structural And Boundary Changes) (Supplementary Provisions and Miscellaneous Amendments) Order 2019.
Last year, Parliament approved legislation to establish Bournemouth, Christchurch and Poole Council, known as BCP, Dorset Council, East Suffolk Council, and Somerset West and Taunton Council in place of the existing 13 councils in those areas. Today, we are considering the fourth statutory instrument consequential to that legislation in order to effect the practical success of those new councils. If approved and made, the order will ensure that all the necessary technical and definitional arrangements are in place so that effective local government continues in those areas. We have worked closely with all the councils concerned; their officials have commented on drafts of the order and have confirmed to us by email that it fully meets all local requirements.
The order provides for several items of business. First, it will establish charter trustees for the unparished parts of the existing boroughs of Bournemouth, Poole and Taunton as the bodies in which the historical rights and privileges associated with those areas are to be vested. For example, Bournemouth and Poole have the historical rights to have mayors and Poole has the right to a mayor and a sheriff; likewise, the Taunton charter trustees will have the right of a mayor for Taunton. I am sure members of the Committee will be delighted to know that historical regalia, such as maces, will also vest in the charter trustees.
Secondly, the order vests the market rights in Bournemouth and Poole to the BCP council, allowing the new council to continue to hold the rights to run charter markets. Thirdly, the order provides for the statutory definition of the area of the ceremonial county of Dorset to be amended in the Lieutenancies Act 1997 and the Sheriffs Act 1887. I am sure that no members of this Committee were present to pass those pieces of legislation, but I know they are held in good heart today.
Michael Fabricant (Lichfield) (Con)
I am happy to confirm that I was not here in 1887. Lichfield is one of the very few cities in the country—only 13, I believe—to have a sheriff, complete with two gold maces going back to the reigns of William and Mary and, before that, Queen Mary. Does the Minister recognise the importance of ceremonial and its value in civic life?
Rishi Sunak
I thank my hon. Friend for that contribution. I commend him and the people of Lichfield for maintaining those civic traditions, and of course I agree that they are an important part of our civic society. Although what we are considering today is technical in nature, the underlying substance of what we are doing is vital to ensure that local civic traditions are not lost when local government reorganises and they can be passed appropriately to the right local civic bodies. I am delighted that we are enabling that for the people of the areas that will benefit from the order.
Simon Hoare (North Dorset) (Con)
I thank my hon. Friend and his team for the work they have done in support of Dorset’s local government reorganisation. The point made by my hon. Friend the Member for Lichfield is apposite. When proposals for change are first mooted, people often say, “This will throw the baby out with the bathwater. We will lose our sense of history and place.” The fact that these things can be retained in a modern reformed setting, melding the old and the new, is an important message that I hope the Minister carries forward to other councils.
Rishi Sunak
I thank my hon. Friend for his continued support for these measures. He embodies the best of the traditional and the modern world, ensuring that local areas embrace the future with efficiency, a dynamic approach to local government and a desire to serve their constituents better, while retaining the great traditions of those areas. I am delighted that he is here to see that come into practice.
Moving on to slightly more mundane—but no less important—matters, the order fourthly makes provision to ensure that the local government pension fund maintained by Dorset County Council, along with all the property rights and liabilities in respect of that fund, will vest in the new Dorset Council. That fund will be the pension fund for employees of that council and of the new BCP council, as well as employees of all other employers in that fund.
Fifthly, the order makes provisions to amend the Weymouth Port Health Authority Order 2017, so that references to the joint board made up of the abolished authorities of Weymouth and Portland Borough Council, Purbeck District Council and West Dorset District Council will instead refer to Dorset Council, which will be the sole authority for the area following reorganisation. Finally, the order makes provision for the existing social housing finance and housing revenue account arrangements to continue for the new councils of Bournemouth, Christchurch and Poole, East Suffolk, and Somerset West and Taunton.
All the provisions are sensible and necessary consequential changes in the light of the establishment of the new councils, which Parliament has already approved. They will ensure a smooth transition to the new arrangements, and continued effective local government in the areas covered. I commend the order to the Committee.
Rishi Sunak
I thank the hon. Gentleman for his thoughtful comments. To start with finance, I do not wish to try the Committee’s patience by rehashing the debate on local government finance in the Chamber last week. Suffice it to say that we believe we are supporting and empowering local government to deliver its three major tasks. One is to support the most vulnerable in society, the second is to grow local economies, because that is ultimately the only way to pay for the services we rely on, and the third is to build strong communities.
The range of support provided by central Government —pothole funds, the high street fund, business rates retention pilots, almost £650 million more for social care—shows that we are a Government committed to supporting local government in pursuing those vital goals for all our constituents. I agree with the hon. Gentleman that people in local government deserve praise for the passion with which they serve their communities. They come into it to realise the three goals I outlined.
What is important is not just the money but the quality of the services we provide. That is why the Government are relentlessly focused on not only keeping taxes as low as possible for our residents but ensuring that we learn from each other, and we see local councillors striving to do exactly that. As we heard from my hon. Friend the Member for North Dorset, our purpose is to ensure that local government is fit for the future. It is not about being told by Ministers in this place what to do, but about local councillors talking to each other and deciding themselves how best to serve their constituents.
Of course, saving money is part of that and is not to be sniffed at. I do not think we should accuse local government of not looking for ways to save money. Ultimately, the taxes that fund local government are paid for by all our residents. It is right that if we can do things better and cheaper we should look for those opportunities, but that cannot be the only reason for local government reorganisation.
During all the debates we have had on this topic, we have heard many passionate contributions, including from hon. Members from those areas such as my hon. Friend the Member for North Dorset, who spoke at great length about the various benefits that this local government reorganisation would bring to his area and constituents. We very much support those aspirations and ambitions that local councillors have for their areas.
The hon. Member for Oldham West and Royton talked about data and digital. I agree with him that that is important. It is not just about the nuts and bolts of integration, which I am pleased to report seems to be going very well on the ground—the go live date for all the new councils is 1 April 2019, and all councils are making excellent progress towards being ready to roll on that day. More broadly, the importance of using data to benefit our constituents is vital.
I am delighted that this Government have backed local government with a new £7.5 million fund to create digital innovation projects across the country. All types of councils are benefiting, from unitaries to urban areas to shire districts to shire counties, and we are finding through that process that councils are collaborating. This is not party political; it is about councils working together and learning from each other, building data platforms that will benefit our constituents, finding ways to streamline and reduce the cost of technology, and ensuring that we can use that information to target services at those who really need them and, in an ideal world, prevent things from happening in the first place. Of course we are in the early days of that revolution, but there are many good examples. There is one close to the area of the hon. Member for Oldham West and Royton, in Stockport Council, which I had the pleasure to visit on one of my first ministerial visits. It was digital council of the year last year and is a great example for others to learn from.
I am delighted that all these councils are embracing the future with optimism. I am delighted that this Government are able to support these locally led and locally delivered plans for reorganisation. I look forward to seeing more than 1 million residents benefit from the changes that we are approving today.
Question put and agreed to.
Independent Inquiry into Child Sexual Exploitation: Telford
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
It is a pleasure to serve under your chairmanship this morning, Mr Stringer.
I congratulate my hon. Friend the Member for Telford (Lucy Allan) on securing this important debate. I know how much she has campaigned for the victims and survivors of child sexual exploitation in her constituency, and she absolutely must be credited for keeping this important issue front and centre, both in Telford and here in Westminster. I also thank my right hon. Friend the Member for Ludlow (Mr Dunne) for being with us today, because of his interest in a neighbouring constituency.
It goes without saying that child sexual exploitation is a heinous crime. It is one of the most difficult things that we as a society have to deal with. As this issue is not my day-to-day policy responsibility, just preparing for this debate and reading through some of the material about it was difficult for me to do. It is therefore right that, at all levels of Government, we work together to provide a strong response to this crime. Together we can ensure that victims find justice, and collectively we can better understand the failings of the past, ensuring that we not only help victims but protect future generations of children.
I will start by setting out what the Government are doing, and have been doing, on this issue. I am pleased to say that the Government’s ambitious “Tackling child sexual exploitation” work has created a step change in the national response to sexual exploitation and violence against children and young people. The Home Office has established a new investigative team in the National Crime Agency. We have invested in new frontline response for victims and services, for example by recruiting an extra 100 specialist rape and child sexual abuse prosecutors.
The Department for Education has funded an independent response unit to boost capacity and expertise in local areas, which has supported over 20,000 professionals. The Home Office has also provided significant extra investment to the law enforcement response, through the police transformation fund. This has led to an increasing number of cases being prosecuted in the courts and heavy sentences being handed down.
My right hon. Friend the Home Secretary also recognises the grooming threats that our children face online. In September, he announced a £21 million investment to improve how law enforcement agencies reduce the volume of offending and pursue the most prolific offenders. There is much more to be done to help to combat this global threat, including by the digital industry, but I believe that the Home Office continues to galvanise global action, and it presses for a co-ordinated industry-wide response.
The Government want victims to have the confidence to report crimes, knowing that they will get the support they need, and that everything will be done to bring offenders to justice. That why in each of the last three years the Ministry of Justice has provided £7 million of funding for non-statutory organisations that support victims and survivors of sexual abuse, including child sexual abuse.
Finally, inquiries are an important way of shedding light on the causes and circumstances of events that have given rise to public concern. That is why in 2015 the Home Office launched the independent inquiry into child sexual abuse to get to the truth, expose what has gone wrong and learn lessons for the future.
I turn to Telford specifically. First of all, I am glad that both Telford and Wrekin Council and West Mercia police are committed to tackling child sexual exploitation in their area. Of course, that must be their priority. I have seen that over the last decade they have forged a model of partnership working, established a taskforce to tackle this issue together, and have been noted by Ofsted for their work. In 2012, they brought seven perpetrators to justice, making their area the second place in the country to do so.
As my hon. Friend the Member for Telford mentioned, counselling and support are of course of paramount importance for survivors—in her words, they need such support to help them to rebuild their lives—so I was glad to see that the council is focused on that. It is responsible for commissioning services. I understand that very soon, a new support contract will start. It has the approval of the Telford Survivors Committee and was rightly conceived by a partnership of the local council, the police and the clinical commissioning group. I hope that all involved focus on what my hon. Friend has said and work together constructively to help all victims and survivors to rebuild their lives.
I am also glad that the council finally agreed to hold an independent inquiry into child sexual exploitation, which many people, including my hon. Friend, had called for. Ultimately, that was the council’s decision; it is the council’s inquiry. I welcome its openness to additional scrutiny through this process.
It is in the interests of all concerned in Telford that the inquiry be set up in a transparent manner that meets the needs of survivors. The council has rightly commissioned an independent body to oversee this process. Appointing the right chair will be key to the inquiry’s success; I agree with my hon. Friend that that should now be prioritised. I also understand her concern that costs associated with the inquiry appear to be rising, and the council should be held to account for that, as is appropriate. The final thing to say is that the council has committed to this independent inquiry, so it must deliver on it, properly and expeditiously, to provide answers and justice for the survivors.
In conclusion, as I said at the outset, we must all learn from mistakes. I again thank my hon. Friend for her tireless commitment to this cause. Only by learning from and tackling the failings of the past, both locally and nationally, can we ensure that we not only help victims and survivors in a better way but, vitally, protect future generations of children from this insidious crime.
Question put and agreed to.
Local Government Finance
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
It is a pleasure to close the debate. I start by joining my predecessor, my hon. Friend the Member for Nuneaton (Mr Jones), in paying tribute to all the committed people who work in local government and deliver for their communities every single day. We are all grateful to them for their hard work and dedication. I thank all hon. Members for their passionate speeches today, particularly those who brought their personal experience of local government to the Chamber—our debates are the richer for that. Although I may not agree with the content of Labour Members’ speeches, I respect the passion with which they represent their local communities.
As a northern MP, I feel that the north is lucky to have, in my hon. Friend the Member for Carlisle (John Stevenson), a champion for the northern powerhouse. He is committed to pushing the Government on rebalancing the economy and working constructively with them. That sentiment was echoed by my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton), who spoke well about the importance of economic regeneration in his constituency and what the Government are doing to support his residents as they look to a brighter future.
My hon. Friends the Members for Northampton South (Andrew Lewer) and for Lewes (Maria Caulfield) made excellent speeches about the need for all Members and all local authorities to think about how we can serve our constituents better and at cheaper cost every single day. We should always strive for ways to achieve that, given that the taxes that fund our public services are paid through their hard work and efforts. My hon. Friends the Members for Rugby (Mark Pawsey) and for Waveney (Peter Aldous) do a great job in this Chamber of representing their district council and county council respectively, and I thank them for all their engagement with me and the Department over the few months in which I have had this job. I can tell my hon. Friend the Member for Rugby that the Secretary of State is well aware of the excessive activity of a few councils with respect to borrowing for commercialisation, and this is something that the Department is actively looking at as we speak to the Treasury.
Many Conservative Members, including my hon. Friends the Members for Bromley and Chislehurst (Robert Neill), for Gloucester (Richard Graham), for Lewes, for Thirsk and Malton (Kevin Hollinrake), for Waveney, for Redditch (Rachel Maclean) and for Bexhill and Battle (Huw Merriman), made powerful and compelling cases for a root-and-branch review of how we distribute money in local government today. We heard about the specific issues that councils face on the ground that our current funding formula simply does not capture. I pay tribute to their work in bringing this to my attention and that of officials. They mentioned issues such as the rapidly changing demographics that are driving up demand for adult social care. These are the kinds of things that a new formula fit for the 21st century should absolutely cover, and I look forward to working with all of them as we develop a funding formula that is right for every part of this country.
My hon. Friends the Members for Northampton South, for Thirsk and Malton and for Bexhill and Battle spoke of the absolute importance of getting adult social care right. I know that my colleagues in the Department of Health and Social Care are committed to doing exactly that, and I agree that the solutions should be radical, not statist. I hope that they will include consideration of the excellent work of the Select Committee.
Three themes have run through the speeches that I have heard in the debate, and they are the three things that everyone agrees that our local councils do: first, they support the most vulnerable in our society; secondly, they drive economic growth in their areas; and, thirdly, they build strong communities. I am proud to say that this Government are backing them to do all three. It is local authorities whose hands are the first to reach out to those who fall on hard times, and I am delighted that this settlement provides them with a real-terms increase in financial resources to support that vital work.
Councils told us that the most acute pressure that they faced was in adult and children’s social care, so this Government responded with £650 million in incremental funding in the Budget. Councils told us that they wanted to do more to support people with disabilities, so this Government responded with an extra £55 million to make vital home adaptations. Rural councils highlighted their particular challenges, so this Government responded by maintaining the rural services grant at record levels. But Conservative Members measure success not by how much money we spend, but by how many lives we are changing, so we are supporting local authorities to innovate and improve to ensure that we are careful with taxpayers’ hard-earned money and that people are getting the best possible services.
In children’s care, where there is a huge variation in performance, we are investing £84 million to spread best practice from Leeds, Hertfordshire and North Yorkshire across the country so that children everywhere will benefit from best-in-class practice. In technology, we recently launched an innovation fund to support councils in embracing the digital revolution. Working with the Local Government Association, we are developing a tool to help councils to benchmark, analyse and drive performance. Across local government, whenever there are opportunities to improve lives, save money and transform services, this Government will be relentless in pursuing them.
The Government understand that the only sustainable way to pay for our public services is to create the economic growth that will fund them. Let us not forget the vital role that councils play in creating prosperity for their communities. Rather than being reliant on central Government handouts, local authorities should be empowered and rewarded for their entrepreneurship. I am pleased to say that our business rates retention scheme does exactly that, and local authorities are expected to retain almost £2.5 billion of business rates growth this year. Across the nation, from Yorkshire to Southampton, our 15 new business rates retention pilots demonstrate this Government’s commitment to backing councils’ ambitions for their local economies. We all know that the enemy of that growth is the higher taxes that the Labour party would inflict on our residents.
Local authorities are key to strengthening our communities. Every single day, they ensure that people are proud of the places in which they live. Those communities must start with the houses that people call home, so this Government are backing local authorities to fulfil those people’s aspirations. The new homes bonus part of the settlement has awarded councils almost £8 billion since it started for 1.5 million additional homes that they have brought forward, each one providing incentive and rewards for those councils that are trying to ensure that every one of their residents can fulfil the dream of homeownership.
However, local authorities told us that they want more. They want greater flexibility to build more of their own homes, so this Government listened and lifted the housing revenue account borrowing cap. Strong communities also need vibrant high streets, so this Government are trusting local councils with a £675 million fund to transform and revitalise our town centres. Finally, when it comes to our communities, the only holes that I want to be pouring money down are the ones on our local roads, so this Government were pleased to ensure that councils have £420 million to fill potholes for our motorists. From homes to roads to high streets, this Government are backing local authorities to create communities where everyone can thrive.
We have heard a lot about deprivation today, and there was an accusation that this Government are somehow trying to massage the numbers. When we put together the new funding formula, we listened to the Housing, Communities and Local Government Committee report that was published at the end of 2017, which made a compelling case for reducing the number of indicators to fund local government without sacrificing accuracy. That is exactly what our funding formula does. Deprivation accounts for less than 4% of the variation in spend for universal services—[Interruption.]
Mr Deputy Speaker (Sir Lindsay Hoyle)
Order. I need to hear what the Minister has to say. I am sure that he is nearly at the end.
Rishi Sunak
We heard a lot about Liverpool and a lot about Surrey. Members of this House should know that households in Liverpool have £400 more to spend on local services than households in Surrey. Only a third of spending in Liverpool is financed by council tax versus almost 85% in Surrey. This funding formula is accurate and based on the facts.
In conclusion, I will continue to listen to local councils to learn from their expertise and to champion their cause across Whitehall. I tell them that their voice is heard loud and clear and that they will be supported by this Government. I commend the settlement to the House.
Question put.
The House proceeded to Division.
Mr Deputy Speaker (Sir Lindsay Hoyle)
I remind the House that the motion is subject to double-majority voting: of the whole House and of Members representing constituencies in England
Draft Buckinghamshire (Structural Changes) (modification of the local Government and Public Involvement in Health Act 2007) Regulations 2019
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
I beg to move,
That the Committee has considered the draft Buckinghamshire (Structural Changes) (Modification of the Local Government and Public Involvement in Health Act 2007) Regulations 2019.
It is a pleasure to serve under your chairmanship, Mr Austin. These regulations were laid before the House on 14 January. If approved and made, they will pave the way for further statutory instruments to give full effect to my right hon. Friend the Secretary of State’s decision to implement the locally led proposal to replace the five existing Buckinghamshire councils with a new single unitary council. The regulations are therefore an enabling element in the process of implementing that locally led proposal.
If approved by Parliament and made, the regulations will allow orders to be made under the Local Government and Public Involvement in Health Act 2007 to implement the Buckinghamshire proposal. They provide for part 1 of the 2007 Act to be varied in relation to Buckinghamshire so that first, proposals may be made for the purposes of the 2007 Act by any principal authority in Buckinghamshire on its own initiative; secondly, any proposal received from Buckinghamshire councils by the Secretary of State —including proposals existing before the regulations are made—may be implemented by order, with or without modification; and thirdly, the requirement for the Secretary of State to consult the councils affected by the proposals and other persons will not apply, reflecting the extensive consultation undertaken by the county council and the subsequent period for representations.
The regulations would expire at the end of March 2021, to allow sufficient time for all necessary orders to be made under the 2007 Act to give full effect to the proposals. The Cities and Local Government Devolution Act 2016 requires that, for regulations made on or before 31 March 2019, at least one of the councils must give its consent for those regulations to be made. Buckinghamshire County Council has given its consent to the making of these regulations.
In conclusion, we are responding to a locally led proposal to replace the existing, unsustainable local government structures in Buckinghamshire with a new council that will be able to deliver high-quality, sustainable local services to the people of Buckinghamshire and provide effective leadership at both the strategic and most local levels. All the existing councils have made clear their commitment to delivering the best services for Buckinghamshire communities. These regulations open the door to delivering that commitment, and on that basis I commend them to the Committee.
Rishi Sunak
I thank all right hon. and hon. Members for their helpful contributions. It is particularly helpful to have contributions from Members who have served in my Department. I pay particular tribute to my right hon. Friend the Member for Chesham and Amersham for the tenacity with which she has represented her district councils’ case, not just today but for many months preceding this debate.
I will take the various issues in turn and pick up on the questions that were posed. I will start by informing the Committee of the Government’s general approach to reorganisation, which my hon. Friend the Member for Brigg and Goole touched on. There is a formal set of criteria that my predecessor, the hon. Member for Nuneaton (Mr Jones), outlined when he had this job. The Government will consider locally led and locally developed proposals according to three criteria: that they would improve local government in the area; that they represent a credible geography; and that they command a good deal of local support.
I agree with my right hon. Friend the Member for Chesham and Amersham; the Government received two proposals, both locally developed and led. As my hon. Friend the Member for North Dorset said, there is no top-down imposition here. One of the proposals was received at the end of 2016 and the other at the beginning of 2017. As we have heard, the process has been going on for some time, in order to get this right. When both the current Secretary of State and his predecessor evaluated the proposals according to the criteria, they concluded that both of them satisfied the criterion regarding demanding a good deal of local support.
We heard some statistics earlier, and it might be worth informing the Committee that there was widespread support from everyone for the principle of reorganisation in general, to simplify the local government structure. For example, 75% of survey respondents said that they believed in supporting reorganisation and 87% of the representations received by the Government also supported the principle. Similarly, all public sector bodies and business groups supported in general the principle of local government reorganisation in Buckinghamshire. There was, of course, disagreement about whether it should take the form of a single unitary or two unitaries, but it is worth the Committee knowing that all public sector providers were in favour of the single unitary proposal, as were the majority of respondents to the open questionnaire, which totalled just shy of 2,500, the majority of opinion in the focus groups, the Buckinghamshire Thames Valley local enterprise partnership, Buckinghamshire Business First, which represents about 10,000 local businesses, and the children’s services commissioner.
That said, both proposals commanded local support. The question for the Secretary of State, therefore, was whether they both also satisfied the two other criteria for local government reorganisation: improving local government and representing a credible geography. For reasons that have been outlined in various statements, the Secretary of State felt that the proposal for two unitaries was not in keeping with those two criteria. One of the LEPs thought that the proposal did not represent a credible geography, and there was concern, especially from the children’s services commissioner, about the fragmentation of services in Buckingham if we went for the option of two unitaries.
As my hon. Friend the Member for Brigg and Goole said, there was a significant question about size. One of the unitaries would have 188,000 people in it, which is considerably below the Government’s published recommendation that local government reorganisation should happen in areas in excess of about 300,000 or 350,000. That judgment is based on research and analysis carried out by the Department and others, which suggests that the optimal size for a unitary authority is 400,000 to 600,000. As my hon. Friend said, some smaller unitaries are more concerned about financial stability, their ability to attract high-quality leadership and other such things, given their small scale.
On that basis, the Secretary of State decided to implement this locally led proposal. I would be the first to acknowledge that it came as disappointing news to the district councils, but the Government and I have strived hard to work with them to alleviate their concerns about the implementation of the proposal. I have had a very constructive meeting with all the district council leaders, and my officials have had several meetings with them. We are currently working with them on the nuts and bolts of the implementation of the proposal, and we are making good, constructive progress.
I draw the Committee’s attention to the press release that all district councils issued when the decision about this proposal was announced. It said:
“This is a golden opportunity to transform all service provision in Bucks”.
I hope that is a statement of their constructive attitude. That is what I have found when dealing with them.
There was mention of a judicial review. I am pleased to quote from the letter received from the district councils, which states:
“The legal action is not intended to frustrate the process of creating a new council. We have been working with our district and county colleagues and will continue to do so.”
I thank them for that.
Dame Cheryl Gillan
I judge that the Minister is about to conclude his remarks?
Dame Cheryl Gillan
That is good, as I will have another opportunity to intervene later.
On the judicial review, I think the district councils have taken that action because they feel that not enough progress has been made. If the Minister is now offering me assurances that progress will be made with my district council and the other two district councils involved in the judicial review, that gives me some cause for optimism. Will he perhaps say when he will meet them again, and what progress he has made since the judicial review was instigated?
Rishi Sunak
It would be remiss of me to comment in detail on legal proceedings or the legal strategy that district councils might wish to pursue. I met them right at the beginning of the process to understand their concerns and to ensure that the Government work with all the district councils and the county council to put in place structural change orders that can command widespread support.
The Secretary of State’s special adviser is meeting all the leaders tomorrow, and I would be happy—as I always am—to meet them to follow up anything that requires my attention. We have been discussing things such as the number of councillors, the timing of elections and whether the new authority should be a continuing authority. I am pleased to say that, on almost every item of business that the district councils raised with me, we have been able to meet their requirements. There is of course one sticking point, which is the leadership of the shadow executive. The hon. Member for Oldham West and Royton raised that issue, and I will come to it in a second. I am pleased to say that, on almost every other concern they have, the Government have shown them that we are willing to work with them—as, indeed, is the county council, which also deserves credit for its constructive attitude. I remain positive and optimistic that we can all come together, and that the structural change orders, when finalised, will command broad support from all concerned.
That brings me to the question of leadership. It was alleged that the Government are imposing top-down leadership on the new body. It was said that that is not good for localism and is something that the district councils are concerned about. The hon. Member for Oldham West and Royton asked specifically about precedent. I am pleased to tell him that there are considerable precedents for central Government specifying the leader of a shadow executive or an implementation executive in such situations. He may be keen to know that in the last wave of large unitarisations—carried out by the Labour Government in 2009, in Cornwall, Durham, Northumberland, Shropshire and Wiltshire—the Government specified a particular leader for the shadow or implementation executive in all cases. That was also the case in Bedfordshire and Cheshire. I hope that he feels that there is suitable precedent in that regard, at least from his own party.
We are going one better than that, because we believe in localism. From day one, the shadow executive will have the ability to elect its own leader or change the leader that has been appointed, but it will start with an appointed leader who is named. Thereafter, we are specifically discussing that kind of issue with the district councils. I hope that the hon. Member for Oldham West and Royton is reassured that that outcome respects localism and local choice.
I turn to the specific questions about process and the suggestion that the right papers have not been laid, which is not at all the case. As I outlined, we are discussing the regulations that enable the process to take place. The orders that have been mentioned will be the subject of a full parliamentary debate, such as this one, when they have been finalised after discussions with the district councils. There is no question of Parliament being deprived of the opportunity to scrutinise and debate those orders. I look forward to the contributions of Opposition Members and Members on this side of the Committee who have expressed an interest in those orders when we return for that fixture, hopefully in a few weeks or months.
There is no legal requirement for the structural change orders to be laid at the same time as the regulations. That has been possible in the past but, in this case it was not, as the orders are still being worked on with the district councils. That said, a draft of the orders is very much in development and has been shared with all the district councils as it is being worked on and finalised.
On the suggestion that we did not have the right consent to lay the orders, I am pleased to tell the Committee that we received subsequent and unambiguous consent from Buckinghamshire County Council. If there was any suggestion that its original consent was conditional, I would be more than happy to place a copy of that letter in the House of Commons Library, if that will please hon. Members. I assure them that all suitable consents for the regulations have been sought.
Dame Cheryl Gillan
I have two things to say. First, I read a direct quote, as I understand it, from a letter from the Secretary of State that said that that consent is on the basis of his decision on the draft structural changes order. So that is a strange thing for the Minister to say, when that was set out in a letter—I do not have the date it was sent. Certainly, that is how I was advised by my district council.
Secondly, I hope that we will resolve this and get all our councils working together and pulling in one direction, but there needs to be some meeting of minds and joint working. This morning the county council put out a press release, announcing unilaterally its members of the shadow authority, rather than working with the district councils and announcing that jointly, which is not a strong indication that it will work with the district councils. I hope that jumping the gun and doing things unilaterally will become things of the past. If elected representatives would like the new authority to work positively, they should do things together, not separately or individually—that is a red rag to a bull.
The Minister knows that it has been an uncomfortable time in Buckinghamshire for many reasons, and we would like to see that healed. I am sorry that my colleagues are not here to speak up on such matters from their perspective, but I hope that I have put forward the case of Chiltern District Council and the other district councils that are having problems with the way this is moving forward. I urge him to try to find a speedy solution.
Rishi Sunak
That is a perfect place to conclude. I completely agree with my right hon. Friend. It is time for a fresh start for Buckinghamshire. It is time for people to forget about what has happened in the past, leave aside the tags of district and county, and come together to work for the benefit of residents. I hope that I can work collectively with my right hon. Friend, all hon. Members who are interested in the area and all local government agents in Buckinghamshire, to ensure that we foster that new sense of purpose and of new beginnings. Based on my experience in meetings, I remain positive and optimistic that that is happening. Of course these things are difficult, but we are moving through them positively. I remain confident that, before too long, we will have a happy resolution to all outstanding matters, and that the people of Buckinghamshire can look forward to a bright future.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Buckinghamshire (Structural Changes) (Modification of the Local Government and Public Involvement in Health Act 2007) Regulations 2019.
Oral Answers to Questions
Rishi Sunak Excerpts(7 years, 2 months ago)
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Damien Moore (Southport) (Con)
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
We are undertaking a review of local authorities’ relative needs and resources to develop a new, more transparent funding formula that will be fit for the future. We are making good progress in collaboration with the sector and recently launched a consultation that will close on 21 February.
Henry Smith
This financial year the Government have granted Crawley Borough Council more than £700,000 for homelessness reduction, and this coming financial year it will be more than £800,000. However, the leadership of the council are complaining about a lack of capital funding for a homeless shelter when it has reserves of more than £21 million. Can I have an assurance from the Department that local authorities will be asked to properly deploy their resources to help the most vulnerable?
Rishi Sunak
The people of Crawley are lucky to be represented by someone who had a very successful career in local government. My hon. Friend is excellently well placed to know that any council should look at using its excess reserves first, rather than refusing to invest in local services or unduly increasing the burden on hard-working taxpayers.
Mr Speaker
The hon. Member for Crawley (Henry Smith) has just been on the receiving end of a charm offensive, in case he had not noticed.
Damien Moore
Does the Minister agree that funding is often better distributed through town councils? Will he condemn Sefton Labour councillors who voted against Southport having its own town council?
Rishi Sunak
This Government support communities that wish to take greater ownership of local decision making. I encourage my hon. Friend and Southport residents to formally petition the council to undertake a community governance review. That will ensure they have the opportunity for their views to be properly considered.
Mr Clive Betts (Sheffield South East) (Lab)
Getting back to helping the most vulnerable, in the consultation document, the Secretary of State proposed to remove deprivation completely as a means of allocating resources from the foundation element of the formula, the non-care element, and rely totally on per capita allocation. Does the Minister not accept that people in the most deprived communities are more likely to use public transport, more likely to need the help of a housing officer and more likely to use council leisure facilities because they cannot afford those in the private sector? If he will not reinstate deprivation as part of the formula, does he accept that the whole review will become known as the very unfair funding review?
Rishi Sunak
This is a consultation, and I would be happy to receive informed opinion from the hon. Gentleman, the Chair of the Select Committee. I would point out, however, that the funding formula covers broadly universal services used by the majority, if not all, of a council’s residents. As we disclosed transparently in the consultation document, population is by far and away the most important factor driving the need for those services. Deprivation was shown to account for less than 4% of the variation in spend in the area.
Andrew Gwynne (Denton and Reddish) (Lab)
South Cambridgeshire District Council, deprivation rank 316, has seen a spending power cut of just £21.85 per household this year compared to 2010. Knowsley Council, deprivation rank two, has seen a spending power cut of £1,057 per household, while Hackney, deprivation rank 11, has seen the largest cuts in spending power of £1,406 per household. How is that fair?
Rishi Sunak
I have some figures, too. Perhaps the hon. Gentleman would like to take account of the fact that the spending power per household of the most deprived authorities is today 23% higher than those that are the least deprived.
Andrew Gwynne
There are lies, damned lies and statistics. The Minister cannot get away from the fact that poorer areas are poorer on his watch and that health inequalities are widening on his watch. The situation is set to get worse as he seeks to continue with his reverse redistribution, shifting funds from the poorest communities to some of the wealthiest. Will he now agree, in the interests of transparency, to Labour’s call for the National Audit Office to independently scrutinise the fairness of his so-called fair funding review before it is implemented?
Rishi Sunak
I do not think that I heard a rebuttal of the statistics I outlined. It is clear that the Government are supporting people in every part of the country. We are providing £1 billion of extra funding to deliver social services and a real-terms increase in funding for local government in the next coming year.
Dr Matthew Offord (Hendon) (Con)
Neil Coyle (Bermondsey and Old Southwark) (Lab)
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
Local authorities have been given access to more than £46 billion for the forthcoming year. That funding is largely unring-fenced, so councils can spend it on children’s services as they see fit. I am pleased that the number of local authorities whose children’s services are ranked good or outstanding is continuing to increase.
Neil Coyle
More than 50,000 British-born children with parents legally in the UK are denied access to central Government support under pernicious Home Office rules. Councils are then forced to step in to provide emergency support through children’s social services. London councils spend £53 million on that, and there is no recourse to public funds. Last year, my council spent £6.5 million. When will Ministers end their wilful blindness to the penury that the policy causes and stand up for councils in the face of this blatant Home Office cost-shunt?
Rishi Sunak
I thank the hon. Gentleman for his question. We engage with the Home Office regularly to deal with the funds for unaccompanied asylum seekers and other such people. I am happy to realise that issue in the next of my regular meetings with the Immigration Minister.
Robert Halfon (Harlow) (Con)
Permitted development rights have been a disaster for my consistency of Harlow, as London councils have socially cleansed their residents and sent 400 troubled families to our constituency. We do not have the resources to look after them in the way they should be. Will my hon. Friend look at permitted development rights, undertake a review and ensure Harlow Council has the resources it needs to look after those 400 extra troubled families?
Rishi Sunak
I will be delighted to meet my hon. Friend to discuss that issue. Of course, vulnerable children must be housed appropriately and looked after, but we should ensure that that is done as closely as possible to where it makes sense for their communities.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
Thank you, Mr Speaker. I was frantically trying to think of a question when you called me just now. I refer Members to my entry in the Register of Members’ Financial Interests.
The number of children in need is up, the number of looked-after children is up and the numbers of child protection plans and child conferences are up, yet the Government grant has gone down. This year, children’s services face a £1 billion funding gap—£3 billion by 2024-25—and the Local Government Association, the Children’s Commissioner, Action for Children and our councils have all warned that children will be at risk. So where’s the money?
Rishi Sunak
The hon. Gentleman should know that last year £1 billion more was spent on children’s services than when we came into office and that the recent Budget announced an extra £420 million that could be spent on children’s services. Government Members are, however, concerned with outcomes, not just the amount of money we plough into things, which is why the Department for Education is working closely with the best-performing areas to spread best practice across the country.
Mike Wood (Dudley South) (Con)
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
The Government fully support the Parking (Code of Practice) Bill of my right hon. Friend the Member for East Yorkshire (Sir Greg Knight). It will create an independent code of practice for private parking companies and deliver robust accountability, providing a much better deal for motorists.
Giles Watling
I was pleased to support and sit on the Committee for the Parking (Code of Practice) Bill, which my right hon. Friend the Member for East Yorkshire so expertly steered through Parliament, but parking scams have been operating in Clacton for many years and it is literally driving my constituents around the bend; they want a solution. When this Bill completes its journey and receives Royal Assent, how quickly can it be implemented?
Rishi Sunak
I thank my hon. Friend for his work on the Committee and for highlighting his constituents’ problems. I am pleased to tell him that I have already placed a draft outline of the code in the House of Commons Library and as soon as Royal Assent is achieved a full code will be issued for formal statutory consultation.
Rishi Sunak
The current system is one of self-regulation and, sadly, the behaviour of some rogue operators using questionable or intimidating practices means that change is required and we must act. The new code will mean consistency and higher standards for parkers and will ensure that rogue operators are driven out of business.
Kate Green (Stretford and Urmston) (Lab)
My constituents—particularly disabled constituents and those, for example, attending hospital appointments—also suffer from punitive cowboy parking operators. What efforts can be made in the code to give special protection to them?
Rishi Sunak
These are exactly the kinds of things that the code of practice will cover, and I will be delighted to receive representations from the hon. Lady as the code is developed.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
The Government regularly publish analysis of the impact of changes in funding on households of different income. Next year’s local government settlement sees a real-terms increase in funding and beyond that there is a range of council tax support schemes to assist those with low incomes.
Dr Huq
Up until now, Ealing Council has ring-fenced child and youth services, but seven of its 13 libraries and 11 children’s centres are on a hit list for community management, which many see as the slippery slope to closure. The council says that it has been forced to do that because it only has 36p in every pound that it used to have. Will the Minister help to match up social enterprise buyers with these services, which help so many low-income families? Better still, when will the Government properly fund local authorities, as the age of austerity is meant to be over?
Rishi Sunak
Not to rehash the fact that local government will receive a real-terms increase in funding next year, it did not escape my attention that at Ealing there are non-ring-fenced reserves sitting at the council of more than £100 million.
Tom Pursglove (Corby) (Con)
Having campaigned for it, I am delighted that the Secretary of State has approved a new business rates retention pilot from Northamptonshire that is anticipated to lever in an additional £17 million for local services. What difference does he believe this will make for frontline services in the county?
Rishi Sunak
I am delighted that Northamptonshire will benefit from the new business rate pilot. Of course, that money can be used by the councils, working together to invest in the future prosperity of their communities. Beyond that, it promotes cultural change to ensure that all local areas have a stake in the economic future of their community.
Carol Monaghan (Glasgow North West) (SNP)
Rishi Sunak
I welcome the cross-Government work on this issue. As the House knows, a couple of years ago the Government announced the £15 million annual tampon tax fund to support women’s charities. There are no current plans to provide extra money to local authorities, but of course the Government keep that under review.
Clive Efford (Eltham) (Lab)
Bambos Charalambous (Enfield, Southgate) (Lab)
The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
I share the hon. Gentleman’s passion for ensuring that councils have adequate early intervention services. I have been championing the troubled families programme since I arrived in this job, and I would be delighted to hear from him and others about how best to ensure that a successor programme is available to councils.
Maria Caulfield (Lewes) (Con)
Nic Dakin (Scunthorpe) (Lab)
Rishi Sunak
It was a pleasure to meet the hon. Gentleman and his constituent, who made a powerful and compelling case for Government action. I am pleased to tell him and all campaigners that we will outline the consultation before the Easter recess to take this important measure forward, and I look forward to his contribution.
Steve Double (St Austell and Newquay) (Con)
Stephanie Peacock (Barnsley East) (Lab)
Today, it has been revealed that Barnsley is the local authority hardest hit by Government funding cuts. Can the Minister really justify targeting cuts on the poorest in society?
Rishi Sunak
This Government are committed to ensuring that every resident in this country gets the funding they need to have the services they deserve. The upcoming fair funding review is based on transparent, simple analytics and I am happy to hear from any colleagues if they disagree with the numbers.
Priti Patel (Witham) (Con)
Residents across my constituency and beyond are extremely concerned about the Rivenhall incinerator development, which was originally approved by the last Labour Government. With revised planning applications being considered, will the Secretary of State listen to my constituents and act by calling this application in?
Local Government Funding
Rishi Sunak Excerpts(7 years, 2 months ago)
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)
It is a pleasure to serve under your chairmanship, Mr Walker. I congratulate the hon. Member for Birmingham, Edgbaston (Preet Kaur Gill) on securing this incredibly important debate. The range of topics covered by Members’ speeches illustrates the breadth and importance of what local government does, and I thank all Members for their very valuable contributions. I pay tribute to the work of local government and local councillors up and down the country.
I join the shadow Minister, the hon. Member for Oldham West and Royton (Jim McMahon), in paying tribute to parliamentarians’ faith in their communities and their interaction with local government. I gently chide him and say that not just Labour parliamentarians have pride in their communities; Conservative Members have considerable pride. Conservative councillors up and down the country represent communities with great passion and dedication, as we have seen in every local election in recent times.
My vision is for local government and a set of councils that drive economic growth, help the most vulnerable in our society and build strong communities. If Members allow, I will take those areas in turn, and deal with as many of the points raised as possible. I apologise in advance if I cannot cover every single question, but I will be more than happy to follow up in person or by letter to anyone whose point was not answered.
We heard a lot about cuts and funding. I agree with the hon. Member for Birmingham, Edgbaston that local government has faced a challenging set of circumstances over the past few years. We do not need to replay all the arguments for why, but the task that this Government faced in bringing public finances back under control was considerable. Local government played a very large part in doing that. It has done a commendable job in those circumstances and I pay tribute to the work of local government, parties and councillors of all stripes in delivering high-quality public services in a difficult financial climate.
As we turn to the future, I believe things are looking up. In the settlement just published for local government for the next financial year, core spending power—the overall metric that looks at all the different income streams and grants available to local government—is forecast to increase almost 3% in cash terms. That represents a real-terms increase for local government and the highest year-on-year cash increase in some time. I know that is welcomed as a step in the right direction.
Beyond cash, local governments play a key role, as we heard, in supporting local economic growth. In the long term, that is the only way to ensure the vibrancy of our local communities and to raise the vital funds we need to fund our public services. The hon. Member for Blackley and Broughton (Graham Stringer) said that local government should have the ability to raise its own funds; business rates retention is one such opportunity.
I am delighted that Birmingham in particular is in the fortunate position of keeping 100% of business rates growth that it generates; many local councils up and down the country want that. The hon. Lady asked whether we would and should pilot new forms of business rates retention; I am pleased to say that is exactly what this Government are doing. In the next year, 15 pilot areas covering 122 local authorities will benefit from being a 75% business rate retention area, generating in aggregate for the country £2.5 billion in incremental funds for local councils, to reward their effort to drive growth.
The hon. Member for Stroud (Dr Drew) asked about the future of the system. I am pleased to say that the whole country should enjoy 75% business rates retention for 2021. That system is being designed—not in secret, as seemed to be alleged, but transparently with the sector—through a system design working group. The consultation is out and I urge anyone with an interest to contribute to the design of that new system.
One of the most undeniably crucial roles that local government continues to play is helping the most vulnerable in our society. Local authorities support the elderly, the disabled and our children in need. We owe councils an enormous debt of gratitude for the incredible work they do in this area. We heard many passionate speeches about their role. This Government are backing local authorities to carry out those vital duties. As we heard last year, the Budget provided an additional £2 billion for social care and committed a further £1 billion of extra funding for local services.
The integration between social care and the NHS was raised by the hon. Member for Crewe and Nantwich (Laura Smith) and my hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter). They are absolutely right to do that. I am pleased to say that we are taking very positive steps in that direction. The better care fund, which pulls together funds from the NHS, local government and social care, is working. Ninety three per cent. of local areas believe that the better care fund has improved integrated working between the NHS and social care. We are seeing that in the numbers: social care has freed up more than 1,000 beds a day since the February 2017—a 43% reduction in social care-related delayed transfers of care. I hope hon. Members agree that we are making progress in this vital area.
We heard about the changing demographics in places such as Essex from my right hon. Friend the Member for Witham (Priti Patel) and my hon. Friend the Member for Chelmsford (Vicky Ford). It is absolutely right that in the long term, as we look to a new funding mechanism for local government, capturing those kinds of rapidly changing demographics is something we must get right. We heard from many Members about the pressures on social care. I am determined to work with the sector to find a formula that reflects accurately and transparently what local councils face on the ground, so that all local councils of all stripes can ensure they are funded fairly.
On children’s social care, I want particularly to point out the incredible work that Essex has done. My hon. Friend the Member for Chelmsford put it excellently: we should focus on outcomes, not just the amount of money we pour in. Her council is a shining example of one that does that in children’s social care, displaying innovation, as we heard from my right hon. Friend the Member for Witham. I am pleased to have spent time with Essex County Council. Many councils can and do learn a lot from how Essex has brought down the number of children in need, through a focus on early intervention and prevention.
The hon. Members for Birmingham, Edgbaston, for York Central (Rachael Maskell), for Leigh (Jo Platt) and for Brighton, Kemptown (Lloyd Russell-Moyle) and others talked about the importance of prevention. I could not agree more with that sentiment. I am a passionate believer that councils can play a valuable role in ensuring that children do not end up in care, and that we can get to problems before they happen. My focus since getting this job has been on the troubled families programme. I am pleased to tell hon. Members that we have been working very hard to robustly understand the value that that programme brings and delivers on the ground in Members’ communities. We will shortly make more announcements about that, and I want to work with all colleagues across the House.
Dr Poulter
On delayed discharges from care, the Minister is right to say that progress has been made, but the challenge is that many local authorities can no longer co-operate with the NHS in the way they could before, by having embedded social workers in NHS organisations to prevent hospital admissions in the first place. That is a very big challenge, and it is driving up hospital admissions. Although the money may go to the acute sector, it will not prevent people from getting there in the first place. The Minister needs to look at that.
Rishi Sunak
Obviously, I defer to my hon. Friend’s knowledge of the NHS, but I thank him for raising the point and I will make sure we discuss that with colleagues in the Department of Health and Social Care as we design the iterations of the better care fund and related joint working practices.
Prevention is incredibly important. The troubled families programme is back with almost £1 billion of money over this cycle; it works with families facing very difficult circumstances, doing all the work we heard about from hon. Members. I hope they will join me in Parliament to make a strong case for investment in this type of programme for this type of service as we approach the spending review, to demonstrate to everybody what a valuable role those kinds of services and local government can play.
Local authorities build strong communities by being cohesive. They have been backed with a £100 million fund to ease local pressures resulting from migration. They do that by being connected, and they are being backed with a £420 million fund to ensure that the roads that our constituents use will transport them safely and quickly to where they need to go. They also need houses for all their constituents, as we have heard. That is why we have lifted the housing revenue account borrowing cap and are investing almost £1 billion in tackling rough sleeping.
It a pleasure to champion local government here in Westminster. It is a role that I relish, and I look forward to working with all hon. Members as we approach the spending review, to make a compelling case for why local government deserves funding to making such valuable change on the ground, whether that is driving local growth, caring for the most vulnerable in our society or building strong communities. Local authorities up and down the country do an amazing job and they deserve our support.