Public Sector Funding

Tony Baldry Excerpts

Wednesday 23rd March 2011 Westminster Hall

[Tony Baldry (Banbury) (Con)]

I think, Mr Amess, that coming in, making an intervention and disappearing is known as doing a Spink, is it not?

It is a great pleasure to follow the very thoughtful speech made by the hon. Member for Worsley and Eccles South (Barbara Keeley). She and I are involved as officers of the all-party group on carers. I think there is no one in this Chamber who does not support the work of volunteers and we would all like to see the maximum amount of volunteering. We all have to accept, however, that we start from a position of having to manage an enormous budget deficit. Each and every day, the Government have to spend £120 million, just on interest, to service the deficit. I did a calculation the other day. I added up all the money that the Government give to my constituency through the local district council, the money it gives in grants to Cherwell district council, Oxfordshire county council, the Oxfordshire primary care trust and Thames Valley police for the whole of Oxfordshire, Berkshire and Buckinghamshire. The total equates to just 11 days’ interest on the budget deficit. We all have to put this in some sort of context.

I want to make some general comments about local government. I have come to the conclusion that the way it operates will have to change radically and fundamentally, and I shall give the House examples of that. We have had a system under which we all pay our taxes, the taxes go to the Treasury, the Treasury allocates money to local government, and local governments, from their largesse, allocate money to voluntary groups in their area, as they see fit. Voluntary groups have very much been rentiers, dependent on the largesse of local government and what it has chosen to give them. That needs to change considerably.

First, there needs to be a commitment by local government to allow much greater community scrutiny. May I give the House an example of why that is the case? On Saturday, I met with campaigners in Deddington in my constituency who want to retain their library. As we discussed the situation, it became apparent that we have in Oxfordshire a public library service, but also a schools library service, which is operated completely separately. That prompts the question, why do we need two services? What happens with back office costs? As we discussed the matter further and began talking about the mobile library, we realised that it was going to villages to which, at the same time, the GP surgery—in the village that has the library—sends transport to collect people to come into the surgery.

As the discussion continued, it struck me that, under that system, the risk is that the greatest cuts will be made at the front end—that is, at the service end—yet no one has had an opportunity to understand the full central costs of running the services. The local authority has not been subjected to complete scrutiny so that people may make proper value judgments about whether it is ensuring that any spending reductions it has to make are fairly distributed between it and the services that it might hitherto have supported.

There is a danger that local authorities will simply retrench to their statutory obligations and duties, and say, “If we don’t have a statutory duty to do this, we won’t do it.” However, as we all know, the reality is that, for a long time, part of the fabric of society has been local authorities funding all sorts of organisations and operations that are not necessarily part of their statutory obligations.

There needs to be a new obligation on local authorities to subject themselves to much greater community scrutiny, and that would happen in part if they had to put all their expenditure online and be much more transparent about how they spend their money. Transparency is one thing, but we also need to ensure that they subject themselves to much greater scrutiny so that people can ask questions about how money is spent.

[Barbara Keeley]

The hon. Gentleman is talking about local authorities retrenching and cutting back on support for the voluntary sector, but I have just outlined an example of the Government doing that. Does the same duty fall on the Government when they start retrenching and substantially cutting grants to charities?

[Tony Baldry]

The hon. Lady is already able to scrutinise Government decisions—that is exactly what she is doing today in this Chamber. She will have the benefit of a response from my hon. Friend the Minister, whom I am sure will answer her questions about TimeBank, which is an excellent charity and an excellent initiative, in his winding-up speech. Local government needs to take a new approach to scrutiny.

My second point is about engagement. My constituency happens to have been confronted with a threat to the local general hospital. Over time, that has constructively resulted in much greater engagement between local authorities, the primary care trust and various campaigning groups, which has been incredibly successful. As a consequence, we have managed to keep the local hospital as a general hospital.

It strikes me that that is a new, organic pattern of engagement between the local authority and, importantly, its officers, and members of the voluntary and community sectors. There are no rigid demarcations as to who is accountable or who is elected. It involves people coming together constructively to try to work out what is in the best interests of the community as a whole. We need the local government, its officers and elected members to be involved in much more of that sort of broader community engagement so that there can be an ongoing discussion with the community.

My last point is that there needs to be much greater commitment on the part of local government and central Government to put opportunities to tender out to social enterprises and voluntary organisations, and they need to be much clearer about how that should happen. The last example from my constituency is a new social enterprise in Banbury that was set up by people who had been working for many years with offenders at Bullingdon prison who were addicted to or had a dependency on drug or substance abuse. They have been doing excellent work involving ex-offenders in therapy. They have a good, reputable board of trustees, including some eminent doctors and others, and are doing a great deal of work with people who voluntarily self-refer. However, they could do a great deal more in the rehabilitation revolution by offering their services to people who may recently have come out of custody or may be in danger of going into custody—for example, there could be referrals from the courts.

The difficulty is that there is a disconnect in the rehabilitation revolution between how such groups get referrals, who buys the services and how they buy services. If government collectively wants social enterprises to develop, there needs to be a much clearer indication of where, within the machinery of central Government and local government, organisations can buy services. Otherwise, it will be extremely difficult for social enterprises to grow because they will have no idea how they might be able to maintain a sustainable income.

We are in incredibly challenging times because of the need to tackle the budget deficit, but we also have an opportunity to rethink much of what we do and how we approach central Government and local government. In the past, there has been a completely top-down, paternalistic, dirigiste system in which a citizens advice bureau at the bottom of the pile is lucky if it gets a grant each year from the district council. We should turn that on its head. There should be a bottom-up, community-driven process of priorities so that people in Deddington or Adderbury who are concerned about their library can drive the agenda, rather than it being imposed on them from the top. We should see this as an opportunity for real change.