Contribution
It is a pleasure to see you in the chair, Dr Murrison. I congratulate and thank my hon. Friend the Member for Harborough, Oadby and Wigston (Neil O’Brien) for securing this important debate.
It was also a pleasure to hear from everybody’s honourable friend, the hon. Member for Strangford (Jim Shannon). It is not the first time he has come here and said, “I know that Northern Ireland is not covered by this, Minister, but perhaps our experience can be instructive,” but boy was he right today. There are two key questions, and he highlighted the importance of the first: “Why do this at all?” With all the attention it needs, it will take away from other priorities, at a time, in particular, when we are about to have huge changes to the system for special educational needs and disability. There are also the costs involved. As my right hon. Friend the Member for Melton and Syston (Edward Argar) said, it is a question that literally no one was asking, and the answer was not in the Labour manifesto.
Even if we accept that there can be reorganisation, we must ask: “On what basis?” In East Hampshire, this plan will break up communities, take away local identities and put people into new artifices. It will take the people of Horndean, Clanfield and Rowlands Castle and put them into a new super-council area centred on Portsmouth, with the rest of East Hampshire going to a vast area called the Mid Hampshire unitary authority, all for an uncertain and quite likely negative return. In plain English, that means that local people will end up paying more.
As my right hon. Friend the Member for New Forest East (Sir Julian Lewis) mentioned, the Government set out clear criteria for reorganisation, which included a focus on sustainability of high-quality services and a minimum scale of 500,000—that number did not come out of nowhere; it came from a serious piece of work by PricewaterhouseCoopers about the minimum scale needed to deliver services—and, crucially, that the building blocks of the new organisation should be existing districts and boroughs. It was on that basis that local leaders engaged in the process. They were not clamouring for it—leaders in Hampshire were not knocking down the door of the Ministry of Housing, Communities and Local Government saying, “Please reorganise us!”—but they engaged in good faith in the process.
Nick Adams-King, the leader of Hampshire county council, set out a summary of conditions for change, including that any new structure must be sustainable financially, operationally and democratically. He said:
“It must be capable of delivering high-quality services”
and
“resilient enough to manage demand in adult social care, children’s services and SEND.”
Crucially, he said, it must have “a balanced tax base” and “reflect real communities”, and
“not create winners and losers by stripping growth, infrastructure and income from area to shore up another.”
I do not think I could put it any better than that, but that is not what has happened. There were three different options in Hampshire, with different rationales for them. In theory, the fewer the unitary councils, the bigger the cost savings, but Hampshire county council and my district council in East Hampshire preferred the middle option, which was to have four authorities—a balance between delivering savings and reducing risk.
There has been a big disagreement about the analysis of those different options by different people looking at them. Crucially, we do not know the Government’s own analysis of the different options for carving up Hampshire and why they chose the one they did. We do know that, of the different local authorities, two on the mainland are smaller than the 500,000 minimum. Of course, the Isle of Wight is smaller again, although there are unique circumstances there.
We know that there are substantial costs. Although there will be some economies of scale in things moving from district level to unitary level, there will also be diseconomies of scale in things moving from county level to unitary level, and those are the things with the biggest cost pressures in our system. People worry what this will mean for housing. All the local plan work was done on the basis of the existing district councils; now, that will not work. People worry about the loss of local knowledge. Parish councils are concerned about the implications for them.
Crucially, there is the question of identity and cohesion. I already mentioned Horndean, Rowlands Castle and Clanfield being split off into Portsmouth, and this is also a concern, as my right hon. Friend the Member for New Forest East said, for parts of the New Forest, for Test Valley and for Winchester. The Minister has spoken of how identities grow over time. These are entities that have been in place for at least 50 years, around which other organisations have organised themselves. Charities and other public sector organisations organise themselves around district and borough boundaries, and these changes will inconvenience them.
If the Government insist on proceeding, the process will need time and sober assessment, and for local authorities to come together to find consensus on the way forward. This is not a trivial question; it is about some of the most important things in our lives, such as the care for our ageing mums and dads and for the children with the highest needs and vulnerabilities. It is a long-term decision. This will not have an effect for three or five years; it will have an effect for decades.
We need to start by knowing on what basis the Government made their decision. We cannot very easily argue with it if we do not know what it is. The letter from the 16 council leaders mentioned by my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) makes a very reasonable ask: that we should know the Department’s own analysis and feasibility assessment. I say to the Minister simply: please, show us your workings.