Local Government Funding

Thelma Walker Excerpts

Wednesday 27th March 2019 Westminster Hall

[Thelma Walker (Colne Valley) (Lab)]

I beg to move,

That this House has considered local government funding.

It is an honour to serve with you as Chair, Mrs Main.

I start with the wide-ranging responsibilities of our local government. In much of the work that I do in Westminster and in my constituency of Colne Valley, I find myself mentioning local government funding. On the Select Committee on Education, it comes up when discussing alternative provision, support for children with special educational needs and disabilities, education, health and care plans, and school funding more widely. It comes up in speeches and questions on issues such as adult social care, finance, carbon emissions and homelessness, as well as in discussions with colleagues and constituents. The work that local government does covers a broad range of important areas, and affects our constituents’ lives in so many ways.

Our local authorities are responsible for public health, support for people with learning disabilities and physical and mental health conditions, and public health programmes, such as those on sexual health and smoking cessation. In education, they support schools, deliver early years education and adult learning, offer youth services and support community engagement. They are also responsible for children’s services, local democracy, highways, waste management, libraries, museums, galleries—the list goes on and on.

[Mike Amesbury (Weaver Vale) (Lab)]

On Saturday, I was with a number of Unison members and frontline workers who work in local government. Despite the horrendous cuts of £330 million to my local council, they are doing a brilliant job, but they are now telling me that local government is on its knees. Does my hon. Friend agree?

[Thelma Walker]

I do agree. I hear the same thing from Unison members—that they have worked so hard and are so committed to delivering services, but they are now crossing red lines where it is not possible to continue.

It is because the work of local government is so widespread that the effects of the cuts have been so far-reaching. The impact has been seen across services and across our country. We know that deprived areas have been hit the hardest, and that Labour councils are due to see falls of 28% on average, compared with a 19% fall for Conservative local authorities. Nine of the 10 most deprived councils in the country have seen cuts of almost three times the national average of £255 per household. Too often, there is a blame game with local authorities, when it is central Government who have cut funding and shifted the burden on to local communities.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

Does my hon. Friend agree that it is not just cuts that are having a severe impact on local authorities, but the additional pressures and demand from all the disabled people who have lost access to benefits, from rising homelessness and from the shameful buck-passing of Home Office responsibilities? With no recourse to public funds, families—

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[Mrs Anne Main (in the Chair)]

Order. The hon. Gentleman is making a speech, not an intervention. I think he has made his point.

[Thelma Walker]

It is absolutely true that cuts are being made in a time of rising need. We are now at a point where all councils are feeling the pain, and we have even seen one of the Government’s own councils effectively declare itself bankrupt. By 2025, it is predicted that local government will face a funding gap of almost £8 billion.

How did we get here? In the name of austerity, round after round of cuts have been dealt to local authorities. Between 2010 and 2020, local authorities will have seen reductions of £16 billion in core Government funding. Adult social care, children’s services and homelessness support have been pushed to breaking point. Other services, such as youth centres, museums and libraries, have just closed.

[Yvonne Fovargue (Makerfield) (Lab)]

Will my hon. Friend join me in congratulating Wigan Council on winning council of the year? How much more it could have done had it not had its funding cut by £160 million.

[Thelma Walker]

I congratulate Wigan Council, and all the council workers who have helped to deliver such success, especially in such trying times.

The situation has occurred in spite of the incredible hard work being done by councillors and council workers across the country. I have seen that at first hand, not just as an MP but as someone who is married to a local councillor. I have seen the hours and the commitment that is put in to support the frontline of government, to build communities, boost life chances and make a difference to everyone’s day-to-day life.

In 2018, Unison surveyed council workers and found that 79% are not confident about the future of local services. In my constituency of Colne Valley, 90% of council workers surveyed said that budget cuts in the past two years have had an impact on their ability to do the job as best they can. Can we just think about that figure? Some 90% of the workforce lack confidence in their ability to deliver their service.

I would like to share some feedback from someone in my constituency who worked supporting children and families in children’s centres, but now described that work as “destroyed”, and the positive outcomes of the work as “overlooked”.

[Tim Farron (Westmorland and Lonsdale) (LD)]

The hon. Lady is absolutely right to point out that the impact is felt beyond council staff and workers, and particularly on children and families. Will she reflect on the fact that in 2008 there were fewer than 60,000 children in care and that today there are more than 75,000? At the same time, since 2008, there has been a 49% cut in early intervention—

[Mrs Anne Main (in the Chair)]

Order. The hon. Gentleman’s name is down on the list of speakers. He has made his intervention.

[Thelma Walker]

I was a headteacher and a teacher for 34 years, and as a member of the Education Committee, I know the impact on children’s services and their ability to cope. My constituent described how low-level support for families had been removed, leaving them to reach crisis point before they received help. With less staff to react to crises, they have been running themselves ragged firefighting. They said:

“I rarely see the public now, but when I do bump into people I used to help, they think I’ve let them down. They feel alone, and I feel responsible.”

We can see the dedication of our council workers, and I know how they feel. As I have said, I was a headteacher at a school in a deprived area with a Sure Start centre attached. Properly funded multi-agency working supported children and families so that they did not end up needing as much support from public health services and other areas.

[Graham Stringer (Blackley and Broughton) (Lab)]

Does my hon. Friend agree that the cuts that have been made so far have been exacerbated by the lack of a real tax base in local government and too much central Government interference?

[Thelma Walker]

I believe that devolved local governance, with local knowledge of the needs of local communities, is really important, and we have lost that.

Early intervention was cost effective in my previous career, and it transformed people’s lives. They were not left to go through the stress and trauma of reaching crisis point. It is better for the health and wellbeing of our communities to have that support in place, but Kirklees was forced to make savings of nearly £200 million over the past nine years. Over the next three years, the council has to find a minimum of £38 million in savings. That has detrimentally affected my constituents’ lives.

In particular, there are significant and growing pressures on high needs in Kirklees. The Government have acknowledged that Kirklees is the second most underfunded council in the high needs block of the dedicated schools grant.

One of my constituents has been in contact with my office for some time about their two children, who have been diagnosed as being on the autistic spectrum. They have been trying to establish appropriate support for their children through education, health and care plans. It has not been straightforward. Cuts to funding mean that the local authority is struggling to give the family the necessary support.

The pressures are also visible in housing. Another of my constituents, who lives in local authority housing, has been subject to verbal abuse and harassment from their neighbours. They have applied to move, but the housing provider has not been able to facilitate relocation because it does not have suitable places to move them to. It has been able to offer only additional security measures to reassure the constituent. Local authorities and local government workers are doing what they can, but they do not have the resources to do what they need to do. Hard choices have had to be made to protect care for the most vulnerable.

I know that these stories will sound familiar to many hon. Members today. Sadly, such stories are by no means unique to my constituency. But there is an alternative; it does not have to be like this. In Finland, local government has a lot of autonomy, and there is a greater level of responsibility for policy and delivery in areas such as education, healthcare, social services, planning and infrastructure. Decision making is closer to the people and seeks to be responsible for their needs. In Finland, policy is geared towards commitments to provide housing where it is needed, support those who cannot care for themselves, and provide accessible low-cost childcare to families.

Finland has also trialled a universal basic income. Policies are focused on delivering positive outcomes for citizens on health and wellbeing, and on reducing inequality. Marking those policies as priorities is important and effective. For the second year in a row, Finland has been named as the world’s happiest country, which cannot be a coincidence. There are some real lessons to take forward from countries such as Finland, which could be used to inform the way local government operates in the UK.

Labour is investing in delivering effective and positive change for local government, our communities and the families within them. The next Labour Government will genuinely end austerity and put an end to this crisis. At the last election we pledged £8 billion for social care. We also pledged an additional £500 million a year for Sure Start and early intervention services, to reverse the cuts that have closed centres across the country and to ensure that all children have the best start in life.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I congratulate my hon. Friend on securing the debate today, when we are all thinking about and debating Brexit, and on recognising the impact on services of cuts such as the 50% cut to central Government funding for Newcastle City Council. I want to mention one additional service: litter. It is an issue for my constituents, and children are writing to me to ask why their environment is covered in litter—

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[Mrs Anne Main (in the Chair)]

Please do not argue with the Chair; I am informing you how it is. This House normally has short interventions, and I want to ensure that speakers get in. I am sure the hon. Lady has got the point and would like to carry on with her speech.

[Thelma Walker]

It is a pity that we do not have better representation on the Conservative Benches.

I was talking about Labour’s vision for how things can be. We will properly fund public health services, establish a new national target to narrow health inequalities, and prioritise the health and wellbeing of every child, which is very dear to my heart. We will give councils £1.5 billion extra for general council services, too. Although that additional funding is important, we have made a commitment to place local government at the heart of our work, giving local councillors a direct voice in central decision making through our local government commission.

To fix our broken political system, where people are left feeling disconnected and disillusioned by politics, we need to put local people and communities at the heart of decision making. Showing local people that Whitehall works for them is the first step in addressing this problem. I want this to be what local government does and is seen to be doing by the public: building inclusive and cohesive communities, providing accessible care for all who need it, and supporting vulnerable people to promote their life chances.

I applied for the debate to request that the Government rethink the approach to local government funding and make urgent changes to address the crisis facing our councils.

[Alex Cunningham (Stockton North) (Lab)]

As you pointed out, Mrs Main, there is an absence of people on the Government Benches this afternoon, apart from the Minister. Does my hon. Friend agree that that might be because there has been a shift of funding from Labour high-need authorities to Tory authorities with less need?

[Thelma Walker]

Absolutely; I completely agree with my hon. Friend. It speaks for itself that we do not have representation on the Government Benches.

I hope the Minister is able to take note of the contributions made in today’s debate and take meaningful action, instead of recycling tired lines. I will conclude with a quote from Nye Bevan:

“Discontent arises from a knowledge of the possible, as contrasted with the actual.”

We know that it does not have to be like this. The public want to see change, and Labour is prepared to deliver it.

[Several hon. Members rose—]

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[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]

Will the Minister give way?

[Rishi Sunak]

Yes.

[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.

[Thelma Walker]

Will the Minister give way?

[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.

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[Thelma Walker]

Thank you for chairing this part of the debate, Sir Christopher. I thank my hon. Friends for their passionate speeches, in which their compassion for their communities really came through. I thank the Minister for his response. What came through to me is a lack of caring from him. I just heard words, but I do not feel compassion. I am sorry. The fact that there has not been one Conservative Member here to stand up and speak in support of the Government’s cuts to local government speaks for itself.

[Neil O'Brien (Harborough) (Con)]

Will the hon. Member give way?

[Thelma Walker]

No, it is too late. The hon. Gentleman was not part of the debate. The reality, as expressed so compassionately by my hon. Friend the Member for Oldham West and Royton (Jim McMahon), is that communities are hurting: we have food banks; we have children with special needs waiting for appropriate support; and we have homelessness. That is the reality. I hear words but I do not hear compassion and care.

Question put and agreed to.

Resolved.

That this House has considered local government funding.