Local Government Funding

Wera Hobhouse Excerpts

Wednesday 28th March 2018 Commons Chamber

[Andrew Gwynne]

My hon. Friend is right to be angry. When the public watching this debate see Tory MPs laughing, sneering and smirking at our public services in crisis, they will know what side the Tories are on, and it is not theirs.

[Wera Hobhouse (Bath) (LD)]

I thank the hon. Gentleman for giving way, because this is an important debate. Yes, the Liberal Democrats are now on the Opposition side—[Interruption.] Listen! We were on the Government Benches to say that we needed to tighten our belts, but for a long time now we have said that enough is enough. We are seeing the impact on our local services. We cannot stand by any longer. You all must have constituents coming—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The Speaker referred to this the other day: we really must not use the word “you.” Hon. Members have to address one another through the Chair. There is a reason for that, so I urge the hon. Lady and all hon. and right hon. Members to ensure that that convention stands.

[Wera Hobhouse]

I apologise, Madam Deputy Speaker. Those on the Government Benches should understand what we are doing to our local services. They must have constituents coming to their surgeries—

[James Cartlidge (South Suffolk) (Con)]

rose—

--- Later in debate ---

[Andrew Gwynne]

I will come back to the hon. Gentleman, if he will allow me. I need to draw my remarks to a conclusion, but I will take a few more interventions before I do so.

It is not just the National Audit Office that is making these comments. Back in 2015, the Institute for Fiscal Studies was warning that deprived areas were suffering from the harshest council cuts. The Government called for councils to spend their reserves and sell off their assets. Tory Northamptonshire followed that instruction to a T, and look where it got them.

As local government leaders warned of the coming crisis in adult social care, the Government said

“town halls are hoarding billions in their piggy banks”.

The Municipal Journal said recently, in response to this toxic situation:

“This is a wholly unsustainable position, and has already led to speculation about the long-term futures of four other counties which have used significant cash reserves in recent years: Surrey, Lancashire, Somerset and Norfolk.”

All I can say is that if the Surreys of this world are now struggling and pleading poverty to the Secretary of State, heaven help the Liverpools, the Manchesters, the Birminghams, the Tamesides and the Hulls of this world.

[Wera Hobhouse]

I thank the hon. Gentleman for giving way. He is very generous. Does he agree that if there is to be wholesale reform of local government funding, it should at least be fair, and should not punish areas that are already more deprived than others? There must be a fair funding formula, but that is not what is currently proposed.

[Andrew Gwynne]

The hon. Lady is absolutely right. Anything that comes out of the mouths of Ministers that contains the words “fair” and funding” sends shivers down my spine.

--- Later in debate ---

[Sajid Javid]

Typically, my hon. Friend makes an excellent point. He speaks from his years of experience as a Local Government Minister, and he cites the excellent example of misspending by Nuneaton. Further up the road from Nuneaton, he could equally have picked Birmingham City Council, which has been in a shambles because of repeated mismanagement by a Labour administration. We shall see what the verdict of the electorate is in a few weeks’ time.

[Wera Hobhouse]

Of course nobody in this House would condone mismanagement of council finances, but Northamptonshire’s biggest budget overspend was on adult social care and children’s services. It was not mismanagement by the council as such.

[Sajid Javid]

I would be happy to send the hon. Lady a copy of the inspector’s report to read. She will see that the inspector was clear in his independent analysis that the problem for Northamptonshire was not a lack of funds.