Housing, Communities and Local Government: Departmental Spending — House of Commons, 2020-07-09
Topic: Mixed Topics
Margaret Olivia Hillier (Labour, Centre-left): It comes to something when the Chair of the Public Accounts Committee joins forces with my hon. Friend the Member for Sheffield South East (Mr Betts), the Chair of the Housing, Communities and Local Government Committee, to ask for more money. It is perhaps not a surprise that his Committee would do that, but it is not something that the Public Accounts Committee does However, I echo everything my hon. Friend said and, given the time, will not repeat it, but we know that local government is actually very efficient at spending money, so I reiterate what he said to the Minister about being on his side on this. We have seen the Treasury first offer all the money, and then massively backtrack, so we have been playing this game of chase with the permanent secretary to get information about exactly and precisely which elements of spending will be refunded as a result of covid-19. I urge the Minister to look at the information that has been sent both jointly and separately to the two Committees and at what his permanent secretary has said to see whether he can push things a bit faster. We will be behind him in getting that detail from the Treasury, because we are very much on the same side on this In my role as Chair of the Public Accounts Committee, we often look at where money is supposedly saved and efficiencies made, but the cost is often actually shunted to another part of the public sector. There is no more accurate description of that than when money is taken out of local government, because that shoves the cost somewhere else. If local government is doing its job properly and doing it well, that will often prevent further expenditure down the line by preventing problems that cost society, communities and the taxpayer a lot in the long term We know, given the current climate, that there is no long-term certainty over funding, as my hon. Friend the Member for Sheffield South East said, and there is a gap of £1 billion on covid spending alone. There is real pressure right now. Budgets are being looked at and decisions are being made. A long time ago—25 years ago—I was a councillor making these very decisions about spending, and we would be looking now at cuts for the following year. That was under a Government of the same party as the Minister, albeit a long time ago, so I will forgive him that if he can get the money from the Treasury now. The concern is that such decisions will be irreversible We are also seeing challenges to commercial funding, with Luton Borough Council being a bad of example of a lot of money suddenly draining from a council budget because of Government policies that encouraged it to borrow more. The Public Accounts Committee has been looking at that and will be issuing a report next week. We have also seen new laws creating new burdens on local government. I have been quite vocal in my concerns about the Business and Planning Bill, which frees up licensing so much that it will cost councils a lot of money both to manage the licences and manage the resulting antisocial behaviour, and it will cause problems for the police. Those budgets will be stretched on top of this gap in funding, which represents a 40% cut over the past decade for my council Local government is on the ground, it knows its communities, and it has been effective at delivery. It has been a crucial partner in delivering on covid responses, and yet councils are not getting the funding. Some estimates suggest that eight out of 10 councils have been looking at section 114 notices, and we know that several councils are technically bankrupt now. We need a clear answer from the Minister today. This is an estimates day debate, not just a general debate, and we are looking at the budget and we want clear answers. We campaigned to get this discussion so that we could get answers in this way We want to know about the timing of any financial settlement, but I appreciate that the Minister may not be able to announce the spending review. We need to know the split of funding on the issues that my hon. Friend has already raised and where there will be a shortfall on certain types of income, particularly around council tax. We need to know what the Government are planning for the loss of commercial income, because that can be devastating for some councils. I add, in my final few seconds, that the £1 billion to remediate cladding will be nowhere near enough, and we need clarity for the many homeowners in really difficult situations as to how they will be supported to live their lives and how councils will be supported to fund that.