Local Government Funding Debate

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John Bercow

Main Page: John Bercow (Speaker - Buckingham)

Local Government Funding

John Bercow Excerpts
Monday 6th December 2010

(13 years, 5 months ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
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Order. Before the right hon. Lady responds, I will make two points. First, interventions are becoming rather long and need to get shorter. Secondly, for the good conduct of the debate, I want to touch on an earlier intervention by the hon. Member for Eastbourne (Stephen Lloyd). I did not hear it clearly at the time, but reference was made to the alleged hypocrisy of another Member. Such references must not be made on the Floor of the House. Making a personal accusation of hypocrisy is disorderly. I recognise that the hon. Gentleman is a new Member, but I hope that what I have said will be helpful for the House as a whole.

Caroline Flint Portrait Caroline Flint
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Thank you, Mr Speaker. I will not hold the hon. Gentleman too harshly to account for what he said in the heat of the debate.

We must recognise that the deficit has to be reduced—and we do. [Interruption.] We have been very clear about that. There are choices to be made, however, about how far and how deep the cuts should be. What does the hon. Member for Tamworth (Christopher Pincher) have to say to Baroness Margaret Eaton, Tory leader of the Local Government Association, who only last week issued a press release on the “unprecedented” levels of the cuts and the impact of front-loading? It is not just Labour people talking about this—[Interruption.] I hear an hon. Gentleman shout “What would you do?” from a sedentary position. We would not front-load the cuts in this way for a start, and we would not have gone as deep.

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Lord Pickles Portrait Mr Pickles
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The hon. Gentleman may be wondering why he is sitting on that side of the House. We have had a general election. His party lost and we won, which is why we are on this side of the House. As for the front-loading—[Interruption.]

John Bercow Portrait Mr Speaker
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Order. The Secretary of State is not a notably softly spoken man, but I am having considerable trouble hearing him. He says that he is a gentle and sensitive soul; that is as may be, but I can normally hear him. There is so much noise in the Chamber that I cannot hear him now, and I want him to be heard.

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Joan Ruddock Portrait Joan Ruddock
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On a point of order, Mr Speaker. I think you will know that I have been in the House long enough to take the rough and tumble of parliamentary debates, but earlier today, in response to my intervention, the Secretary of State made a remark about an hon. Lady’s “champagne lifestyle”, which appeared to be directed at me. I found that really offensive and rude. Will you advise me, Mr Speaker, on whether I could expect that remark to be withdrawn?

John Bercow Portrait Mr Speaker
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Let me say three things to the right hon. Lady. First, good temper and moderation in the use of parliamentary language are always to be encouraged. That principle is set out clearly and explicitly in “Erskine May”, which is our guide. Secondly, I had the privilege of serving on the International Development Committee with the right hon. Lady and travelled to a number of places around the world with her and other colleagues, and I cannot recall her consuming champagne at any stage. Thirdly, let me simply say that my distinct recollection is that the right hon. Lady is a modest person, with very little to be modest about. I hope that that is helpful to her and to the House.

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Robert Neill Portrait Robert Neill
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The hon. Gentleman gets it right. Seemingly none of us knows what Labour’s plan was and the Leader of the Opposition does not know either. I assume that the hon. Gentleman will progress rapidly to the Front Bench, as he is as vague on policy as the leader of his party. If that is the best the hon. Gentleman can do by way of intervention, I suggest he saves his knees the trouble in future.

May I just—[Interruption.]

John Bercow Portrait Mr Speaker
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Order. Will the hon. Gentleman resume his seat for a moment? It is always a pleasure to listen to him, but he is swivelling and perambulating. I want to hang upon his every word; he must address the House.

Robert Neill Portrait Robert Neill
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I shall do my best, despite the noise.

What we have seen today is an exhibition of wriggling by the Opposition. They have failed to take on board serious concerns raised by hon. Members. Reference was made to my hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes)—[Interruption.] I was actually looking at you, Mr Speaker; I think that is courteous too. Reference was also made to my hon. Friend the Member for Bradford East (Mr Ward). Hon. Members have made serious points. The need for deficit reduction does not brook significant delay, but fair points have been made about it being appropriate to look not just at formula grant but at other spending powers available to local authorities. My right hon. Friend the Secretary of State has indicated that we are continuing to do that. We have taken steps to roll more grant into the formula grant, so the arguments that were made on that issue do not sensibly contrast like with like.

We have sought to give more flexibility in these undoubtedly difficult times by ending the ring-fencing of all revenue grants from 2011-12—something that the Labour Government never got around to doing. We are including single, non-ring-fenced, early-intervention grant worth about £2 billion. We are significantly simplifying and streamlining grant funding by rolling about £4 billion of grants in 2010-11 into the unhypothecated formula grant and reducing the total number of grants from 90 to 10. All those measures are designed to bring much greater transparency, as hon. Members on the Government side have pointed out. Despite their 13 years in office, the previous Government neglected to do that, so we need not take lessons from them on fairness or transparency.

As the Secretary of State has indicated, we are continuing the system of floor protection, which will help the most vulnerable authorities. That degree of ring-fencing, plus the other, greater freedoms that will be given in the decentralisation Bill that will be introduced shortly, will significantly assist local authorities in directing their resources to the most vulnerable. The fact that resources are limited is entirely the responsibility of Opposition Members rather than Government Members and the Opposition should never seek to wriggle out of that.

Let me congratulate one or two hon. Members in particular. My hon. Friend the Member for Meon Valley (George Hollingbery) made a particularly thoughtful and considered speech. He talked about the inevitability of floors and ceilings in the current system and the fact that there are real concerns in shire areas as well as urban areas. Any Government have to carry out a balancing act and that is what we seek to do. He and other hon. Members rightly referred to the need to move away from a formula that is past its sell-by date. Unlike our predecessors, this Government have grasped that nettle and committed to a swift review of local government resource in the first six months of next year.

My hon. Friend the Member for Bermondsey and Old Southwark made fair points on behalf of London councils and the Local Government Association. The Secretary of State has met LGA representatives, and let me tell the hon. Member for Stockton North (Alex Cunningham) that I am happy to meet his fire authority; I have met a number of others already. We are protecting fire services, which are getting a lesser degree of reduction, and the profile is different, so steps are being taken in that regard. I will happily meet any authority that seeks to discuss these issues with me.

My hon. Friend the Member for Halesowen and Rowley Regis (James Morris) made an exceedingly well informed and powerful speech. He talked about the need, at times such as these, to move to greater transparency. It was pretty telling that certain Opposition Members rather jeered at the mention of the £500 in relation to transparency. That shows a patronising attitude towards putting ordinary people in the driving seat. Perhaps that is the difference between the Government and the Opposition on this issue.

My hon. Friend the Member for Croydon Central (Gavin Barwell) carried out a comprehensive demolition job on the speech by the shadow Secretary of State, the right hon. Member for Don Valley (Caroline Flint), and the entire proposition behind the Opposition’s motion. The previous Government were going to cut, and they would have cut as deeply. They were going to eliminate the deficit; the argument was over timing. The state that we discovered when we came into government meant that swift measures were necessary. To pretend otherwise is to behave like the people who set fire to the house and then blame the fire brigade when it comes in to put the fire out. The intellectual bankruptcy of the Opposition is shown by the approach that they have adopted to these matters.

I say to the hon. Member for Mitcham and Morden (Siobhain McDonagh)—whom I have known in London government for a long time—yes, I accept that there are councils of all political complexions trying hard in difficult times. My own council is doing so, as is hers. Equally, she will understand that, despite the sympathy that we have for those difficulties, as anyone in the business world will tell her, it is often best and most sensible to take steps towards restructuring at an early stage. That is particularly appropriate in the case of local authorities with a full range of functions. There are good examples not only in London, but across the country of local authorities making real structural and operational change. That needs to be done quickly.

I appreciate the point made by a number of hon. Members about capitalisation. I understand what is said, but it should be remembered that we are making £200 million available for non-equal pay capitalisation. Capitalisation is an exception to the normal accounting processes. Because capitalisation is permission to borrow, that ultimately has impacts upon revenue spend because it has to be paid back. It must therefore be strictly controlled. Although I understand that councils will inevitably say they want more, Government must be realistic and set limits to an exception to the normal process.

That we are not being dogmatic is reflected in the fact that we have adopted a different profile in relation to fire authorities, because experience shows that it takes single-purpose authorities longer to reconfigure their working arrangements than those that have a range of purposes which can be more effectively shared. We have been sensible and proportionate in our approach.

The Secretary of State stressed—I hope Members from all sides will take this on board, as there seemed to be a degree of consensus on the matter—that it is important that local authorities do not resort to the old-fashioned way of salami slicing and, in particular, cutting grant to the voluntary sector. That is usually important. We will fail if local authorities go back to the tried old ways of doing things. We want to encourage them to do otherwise.

That is why, in the localism Bill, we will establish new rights for voluntary and community groups to deliver local services. That is why the Government have created a transition fund of £100 million to be spent in 2010-11. It will support the voluntary and community sector during the first year of the spending round. Through the localism Bill we will also give voluntary and community groups the right to challenge local authorities where they believe that they can run services differently or better. There is a raft of measures to support the voluntary sector, none of which was adopted by the previous Government in their 13 years in office—another example to demonstrate why we need take no lessons.

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Paul Farrelly Portrait Paul Farrelly (Newcastle-under-Lyme) (Lab)
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On a point of order, Mr Speaker, the next motion on the Order Paper is about the time the House will have to debate university tuition fees, which is a huge issue for students and their families in this country. In 2003, the White Paper was published a full year before the vote, and in 2005, whether some of us liked the policy or not, the Government put their proposals to the general public at an election. In contrast, this year nobody voted for these plans and we have been told that we have only three hours for debate and no time for discussion of whether that is a proper amount of time for the House. Mr Speaker, could you advise us how the House can place on record its unease about how the vote is, frankly, being rushed through, and how coalition Ministers are running scared of proper debate and examination of their plans?

John Bercow Portrait Mr Speaker
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The short answer to the hon. Gentleman’s inquiry about how best he can register his concern is that, as I think he knows, he has just done so. It is very clearly on the record. As a very experienced Member of this House, he will also be aware that the form of such a motion and the question of whether it is debatable is not a matter for the Chair. However, the hon. Gentleman has registered the point and I hope that he feels pleased to have done so.

Greg Mulholland Portrait Greg Mulholland (Leeds North West) (LD)
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Further to that point of order, Mr Speaker. May I ask the Chair how much time Back-Bench MPs will get to speak in the three-hour debate on Thursday? That is an issue of huge concern to many hon. Members, who feel that there is insufficient time to debate a matter of such huge importance to ourselves and our constituents all round the country.

John Bercow Portrait Mr Speaker
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The short answer to the hon. Gentleman is that he can ask me how long there will be for Back Benchers to speak—proof of that is that he has done so—but I am afraid that I am unable to give him an answer to that question. What I can say to him is twofold: first, as he knows, I am always keen that Back Benchers in this place should get the maximum opportunity to put their case; and secondly, the Leader of the House and the Deputy Leader of the House are both present, fortuitously or otherwise, and they have heard the hon. Gentleman’s point of order.