Stronger Towns Fund — House of Commons, 2019-03-04
Topic: Government Operations
Andrew John Gwynne (Labour, Centre-left): I thank the Secretary of State for advance sight of his statement, but we should call this out for what it is. This supposed funding boost is a pittance that will do little compared with the billions that his Government have already cut from our local communities. It will do little to reverse the damage that they have inflicted in each and every region. The reason that many of our towns are struggling is a near decade of politically imposed cuts, including to council funding and public services, by this Conservative Government. No one should be hoodwinked by such a shameful and pitiful attempt to gain support for the Prime Minister’s botched withdrawal agreement The fact is that between 2010 and 2020, councils will have lost 60p out of every £1 that the Government provide for services. Why has the Secretary of State cut 60p in every £1 from local government? Why did he not announce a reversal of that cut today, considering that it has left local services facing a funding gap of £3.2 billion? By 2025, the gap facing our local councils will rise to £7.8 billion If that was not bad enough, at a time when the Government should be reinvesting in our most deprived areas, they are instead cutting them even harder. Nine of the 10 most deprived councils in England have seen cuts of almost three times the national average. With such policies, does the Secretary of State believe that his party is truly showing itself to be the party for the few and not the many, or is this, as many of us suspect, a thinly veiled effort to mask its near decade of failure The Secretary of State says that he has taken deprivation into account when considering the allocation of this fund. That is baffling, because earlier in oral questions he again refused to say that deprivation would be included when considering the local government settlement. Why is deprivation rightly included in this fund but not the fair funding formula review? He mentioned Blackpool, yet Blackpool—the most deprived area in England—has seen a cut in spending power of more than £45 million this decade. That is more than the £40 million a year that the entire north-west of England will get from this fund Compared with the cuts that the Conservative Government have inflicted on our local communities across the country, this funding announcement is a drop in the ocean. We have seen cuts in spending of £7.3 billion over the past decade as a result of nine years of austerity. Even if we are being favourable to Ministers, the Government’s enticement is £5.7 billion short of the cuts that they have already inflicted. It is £434 million short of the damage they have caused to the east of England; £405 million short of the damage they have caused to the east midlands; £505 million short of the damage they have caused to the north-east; £1.18 billion short of the damage they have caused to the north-west; £353 million short of the damage they have caused to the south-east; £273 million short of the damage they have caused to the south-west; £709 million short of the damage they have caused to the west midlands; and £735 million short of the damage they have caused to Yorkshire and the Humber. What does the Secretary of State have to say to local people in regions for which this money still leaves a massive shortfall of hundreds of millions of pounds? The funding promised by the Secretary of State over the next seven years does not even get close to matching the amount that regions have received from the European Union over the last seven years through European regional development and social funding. This package is £642 million a year short of the money that English regions would have received, and that is despicable This announcement is inadequate and confused. Why is £600 million unallocated? Why is there no clarity at all about where the money will go and on what? The Secretary of State talked about other parts of the United Kingdom. Will this money be distributed through Barnett consequentials, or will the Ministry of Housing, Communities and Local Government be given a new role? What will the allocations to Scotland, Wales and Northern Ireland be? Why did No. 10 not know what period the fund was for this morning, only for it then to be clarified that it is a long period of seven years There is still time for Ministers to reconsider the cuts to councils. I ask the Secretary of State to do so, and to do so immediately, because the danger for us all is that our communities will continue to decline if they do not get the proper support they need. It is time for a Government that will give our towns and communities the funding, resources and support they need to recover—one that will act genuinely in the interests of the many, not the few.