Contribution
The Prime Minister said that there would be no tax rises on working people. I imagine that the working people who are about to receive a £500-a-year increase in their council tax, the working people in Westminster expecting an 82% rise in their council tax, and those in Wandsworth expecting an 87% rise in their council tax as a result of this settlement will wonder if “working people” was a phrase that applied to them. Those in our business community who heard the Prime Minister say to them that a Labour Government would introduce “permanently lower business rates” will wonder where the massive rise in their business rates bill has come from.
There are things in the reports before us that give us the opportunity to make tweaks and changes, and make progress. I am grateful to the Minister for the interest that she has shown, for example, in the way that the local growth fund—the method of distribution of which is having a huge impact, particularly on colleagues in Northern Ireland—offers scope for some adjustment. However, it is very clear that the recovery grant that the Secretary of State spoke about still bears little or no relation to the pressures arising from the statutory duties on local authorities. As we have heard from Member from across the House, it leaves councils tens of millions of pounds short of the money that they need to do the minimum required of them by this Government, and that is before addressing some of the broader, more general issues.
We have two motions before us. One of them is on the report on local government finance, and the other is on the report on the referendum limit. I am sure that we have all noted the complete absence of any Reform Members in the Chamber. I pay tribute to the champions of Worcestershire, my hon. Friends the Members for Bromsgrove (Bradley Thomas) and for Wyre Forest (Mark Garnier), who spoke up for residents against an authority that, having been part of a party that promised no rises in council tax and cuts in office, is now looking to top the league table with the largest council tax rises in the country this year. It should be ashamed of its misinformation to residents during election campaigns.
Let me mention some of the things that I hope the Minister will address in her summing up. The first is what the measures in the report do to support housing delivery. We know from the recent report by Savills that 23 of London’s 33 boroughs report that the net figure for new homes being commenced this quarter is zero. Lambeth council has been very public about that, and has reported net zero new social homes. The Secretary of State and the Chair of the Housing, Communities and Local Government Committee, the hon. Member for Vauxhall and Camberwell Green (Florence Eshalomi), are particularly familiar with that. It is clear that housing delivery is collapsing at a time when lofty ambitions are being set, and at a time when the grants for homelessness are cash-flat, as are care costs, and costs relating to vulnerable children and care leavers.
It is clear that for all the bluster, the smoke is clearing, and the mirror is not particularly shiny. The impact of the relentless rises in national insurance contributions and business rates, as well as an additional £750 million of costs to local authorities from changes to the emissions trading scheme, will put huge pressure on the ability of local authorities to deliver.
It having been said that the Secretary of State wanted to move away from a bidding process, we now hear that the funding that has been announced, without any detail, for special educational needs deficits will be the subject of a bidding process to the Department for Education, and there will be a requirement for a reform plan. It will be interesting to hear how that plan differs from the safety valve agreements that many authorities already have in place, which are reducing SEND deficits year on year.
What is clear in this settlement is that the Government are not meeting even their own standards on local government. Local democracy is paying the price, with elections cancelled and taxes relentlessly rising. This statement must be seen for what it is: it is a council tax bombshell; it is a business rates bombshell; it is part of a picture of a Labour Government who simply cannot manage the money.