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Housing, Communities and Local Government: Departmental Spending
09 July 2020
Lead MP
Clive Betts
Debate Type
General Debate
Tags
Crime & Law EnforcementSocial CareHousingLocal Government
Other Contributors: 24
At a Glance
Clive Betts raised concerns about housing, communities and local government: departmental spending in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Local councils have responded magnificently to the covid crisis despite facing austerity. They deliver social care, rehouse rough sleepers, administer business grants, and maintain essential services while having faced an 80% cut in grants and a nearly 30% cut in spending power over the past decade. Despite these cuts, councils have stepped up during the pandemic. However, there is uncertainty about the Government's commitment to fully compensate for extra costs and lost revenue, with a gap of £1 billion between required funding and compensation received. The debate calls for more certainty regarding funding and a long-term sustainable financial settlement.
Lilian Greenwood
Lab
Nottingham South
Councils promised 'whatever funding is needed' during the Grenfell fire safety improvements, but Nottingham City spent £8 million with no central Government support. This raises concerns about similar promises being kept during the current crisis.
Clive Betts
Lab
Sheffield South East
Local government needs clarity on funding commitments and assurance that all costs related to the pandemic will be covered by the Government. There is a need for certainty in apportioning losses from council tax and business rates, treating arm's length arrangements similarly, and ensuring a multi-year settlement with significant real-term increases in funding.
Matt Rodda
Lab
Reading Central
Questioned the specifics of compensation for lost income and the timing of apportionment for losses from council tax and business rates, highlighting the importance of certainty for local authorities to plan effectively.
Jack Brereton
Con
Stoke-on-Trent South
Local government has done remarkable work in helping communities through coronavirus, and Stoke-on-Trent has received over £16 million of emergency financial support. The council has managed its finances well but will still face costs not fully met by this funding. Stoke-on-Trent is the 12th highest local authority for multiple deprivation, with a low council tax base, making development and revenue generation challenging. It's crucial to maintain the Government’s agenda for business rates retention. Initiatives are needed for nationally led financing reform in areas like social care and children’s services. The Stoke-on-Trent covid support network set up by the council is doing amazing work, but many businesses and voluntary organisations have been impacted negatively. Cities like Stoke-on-Trent are excited about levelling-up commitments from the Government but disappointed with funding rejections for high streets. High streets need support to evolve and survive post-coronavirus, requiring changes in planning laws and investment incentives.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
Local government is efficient at spending money but faces financial pressures due to the current climate. There is a £1 billion gap for covid spending alone, representing a 40% cut over the past decade. Councils are looking at section 114 notices and some are technically bankrupt. The Business and Planning Bill will add costs for local government in managing licences and antisocial behaviour. Commercial funding challenges are also impacting councils, with Luton Borough Council being an example of sudden budget drains due to borrowing policies. Local government needs clear answers on the timing of financial settlement and clarity regarding the loss of commercial income and council tax shortfall. The £1 billion for cladding remediation is insufficient, requiring more support for homeowners and councils.
Olivia Blake
Lab
Sheffield Hallam
Focused on the private rental sector and urged the Government to provide sensitive support for local authorities based on social and regional inequalities. Cited a Shelter poll showing that roughly 220,000 people are facing possible eviction. Highlighted how BAME individuals are twice as likely to face rent arrears compared to other renters.
Paul Holmes
Con
Hamble Valley
Acknowledged the extra funding provided by the Government and welcomed it for Eastleigh Borough Council, which received £42.25 million in support over the last month. Criticised the Liberal Democrat administration's decision to build a property portfolio that risks the local authority’s future viability.
Daisy Cooper
Lib Dem
St Albans
Pays tribute to councillors and council officials for their work during the pandemic, highlighting financial challenges faced by St Albans City and District Council. Requests four urgent considerations from the Government: flexibility in borrowing for revenue budgets; cheaper borrowing opportunities; speeding up the business rates review; and investment in cladding remediation works.
Andy Carter
Lab
Warrington South
Acknowledges the high level of council borrowing in Warrington, praising residents and support workers for their efforts during the pandemic. Mentions specific examples like Macy Owen's fundraising initiative. Highlights the need for planning reform to aid post-pandemic recovery on high streets.
Matt Western
Lab
Warwick and Leamington
Compliments local authorities' performance in delivering services during the pandemic, criticising funding cuts and inadequate support from central government. Stresses the need for increased social housing construction and reform of the Help to Buy scheme.
Ben Everitt
Con
Daventry
Proposes reforms in local government finance, advocating for a fairer funding system that addresses revenue raising issues and social care costs. Calls for cross-party solutions and highlights recent support from the Government to councils.
Mitcham and Morden
The debate centres on the housing crisis, particularly concerning temporary accommodation. Siobhain McDonagh highlights that over £1 billion is spent annually by the Ministry on temporary accommodation for homeless families, with 88,330 families now in such conditions including 128,340 children. Many are sent far from home, up to hundreds of miles away, breaking statutory duties and causing immense hardship.
David Amess
Con
Southend West
Sir David Amess raises concerns about a proposed new super council in Essex without proper consultation. He also discusses local issues such as parking, speeding, cycling on pavements, licensing laws, and homelessness. The MP praises Southend-on-Sea Borough Council's registry office while calling for action against illegal traveller sites.
Mark Francois
Con
Rayleigh and Wickford
Mark Francois criticises the proposal of a new super council in Essex, describing it as a 'white elephant' and opposing the secrecy with which it was planned for two years by six chief executives without involving Essex MPs or backbenchers.
Matt Rodda
Lab
Reading Central
Matt Rodda addresses fire safety issues in flats following Grenfell, highlighting ongoing risks from dangerous cladding and the need for funding to inspect buildings and remove flammable materials. He calls for new resources and powers for local authorities.
Selaine Saxby
Con
North Devon
Selaine Saxby discusses the impact of the pandemic on small businesses in her constituency, noting that £41 million has been paid out to 3,638 businesses. She highlights challenges for towns like Barnstaple competing against larger cities for funds and calls for a recognition of Devon as part of a single region.
David Simmonds
Con
Ruislip, Northwood and Pinner
Discussed the financial resilience of local government during the covid crisis and highlighted the importance of housing and planning, social care, and NHS collaboration. Emphasised the role of business-savvy councillors in managing council finances.
Bob Seely
Con
Isle of Wight
Expressed gratitude to Isle of Wight Council staff for their work during the pandemic, thanked the Government for £4.3 billion in local government funding, and highlighted the need for additional financial support for island communities due to higher costs.
David Linden
SNP
Dunfermline and West Fife
Addressed concerns about the UK shared prosperity fund and its impact on Scotland following Brexit. Discussed the stronger towns fund, highlighting discrepancies in funding allocation for devolved nations, and advocated for continued support for homeless individuals post-pandemic.
Kate Hollern
Lab
Blackburn with Darwen
Local councils have faced unprecedented funding cuts over the last decade, losing £51 billion in total. Councils like Blackburn with Darwen have lost 30% of their funding and are at risk of further job losses among key workers due to insufficient government support. Despite these challenges, local authorities have managed social care, supported rough sleepers, provided business rates relief, and coordinated assistance for vulnerable groups during the pandemic.
Simon Clarke
Con
unknown constituency
Acknowledges the hard work of local government officials in rising to challenges posed by the pandemic. Announces additional £500 million funding support for councils, bringing total unring-fenced grant funding provided since the crisis began to £3.7 billion. Asks councils to prioritise adult social care, children’s services, public health, fire and rescue, household waste, homelessness, domestic abuse, and managing excess mortality.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
Rises to ask for further clarity on the government's prioritisation of certain aspects of local council work as mentioned by Minister Simon Clarke. Emphasises the importance of detailed information.
Simon Clarke
Con
Newton Abbot
The Government have provided £28 billion in total to local councils, businesses and communities to help them through the pandemic. This includes a new test and trace service funded by £300 million. The Minister praised Tom Riordan of Leeds City Council for his work on this initiative. A co-payment scheme was introduced to cover income losses from sales, fees, and charges such as car parking fees or revenue from cultural assets. The Government will cover 75% of losses beyond the first 5% of planned income through the co-payment scheme. Additionally, councils can manage shortfalls in local tax income for up to three years. The Minister acknowledged concerns regarding leisure centres and assured that work is being done with Treasury and DCMS on this issue. He stated that the autumn spending review will address irrecoverable council tax and business rate losses between central and local government for 2020-21. Furthermore, a £3.6 billion towns fund and a £5 billion stimulus from the accelerated getting building fund have been announced to boost economic growth. The Government are also committed to working closely with councils in delivering an ambitious devolution agenda.
Clive Betts
Lab
Sheffield South East
The Labour MP thanked the Minister for his comments but highlighted issues that still need clarification, such as the £3.7 billion allocation not being reduced by the commitment to cover 75% of income losses. He also raised concerns about the shared prosperity fund, emphasising that no area should receive less than it would have under EU structural funds arrangements.
Government Response
Announces additional £500 million funding support for councils, bringing total unring-fenced grant funding provided since the crisis began to £3.7 billion. Asks councils to prioritise adult social care, children’s services, public health, fire and rescue, household waste, homelessness, domestic abuse, and managing excess mortality.
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