Tuesday Volume 507 9 March 2010 No. 53 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 9 March 2010 £5·00 © Parliamentary Copyright House of Commons 2010 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through the Office of Public Sector Information website at www.opsi.gov.uk/click-use/ Enquiries to the Office of Public Sector Information, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 133 9 MARCH 2010 134 The Secretary of State for Communities and Local House of Commons Government (Mr. John Denham): I asked an expert taskforce, chaired by Sir Steve Bullock, mayor of Lewisham, and Sir Richard Leese, leader of Manchester city council, Tuesday 9 March 2010 to look at how best to achieve efficiency savings and protect front-line services. Their report “Putting the Frontline First: Meeting the local government challenge” The House met at half-past Two o’clock was published on 1 March. It sets out 10 decisive steps that councils can take to achieve efficiency while delivering PRAYERS high-quality local services. Local people will rightly be intolerant of any council if they are told that front-line services like care provision, libraries or youth services [Mr. Speaker in the Chair] will be cut because it has failed to carry through all the recommendations made in our experts’ taskforce report. Mr. Hendrick: Will my right hon. Friend comment on Oral Answers to Questions the disgraceful situation at the now Conservative-led Lancashire county council? It has received a 5.1 per cent. increase in Government grant but has cut the budget by 3 per cent., with the likelihood that 200 to COMMUNITIES AND LOCAL GOVERNMENT 300 jobs will now be lost. The council is also failing to support the staff at the National Football museum who need an agreement to be reached between Lancashire The Secretary of State was asked— county council and Manchester city council so that the museum can remain at Preston and in Manchester Planning Appeals as well. 1. Mr. Laurence Robertson (Tewkesbury) (Con): Under Mr. Denham: First, may I pay tribute to my hon. what exceptional circumstances planning inspectors may Friend’s sterling efforts to support the football museum consider representations on planning appeals made after and to retain it for his constituency? He makes an the deadline for submissions has passed. [320996] important wider point, because some local authorities are trying to suggest that the cuts that they are making The Minister for Housing (John Healey): Information to front-line services in some way reflect cuts in central can be accepted after the deadline when there has been Government finance or the wider economic circumstances. a material change in circumstances or when there are As he has rightly highlighted, English local authorities demonstrably good reasons for the deadline to have received, on average, a 4 per cent. cash increase for the been missed. coming year, and the cuts that are being made reflect the decisions of Tory and Liberal local authorities to Mr. Robertson: I am grateful to the Minister for that make them at a local level. response and for his earlier telephone call to my office. He will be aware that, in a planning appeal in Innsworth in my constituency, although the public inquiry date Mr. Greg Hands (Hammersmith and Fulham) (Con): has passed and the inquiry has finished, a change of Will the Secretary of State join me in congratulating details has been submitted by the developer. A rather Hammersmith and Fulham council on delivering a confusing letter from the Secretary of State’s office council tax cut for the fourth year in a row while purports to reopen the inquiry, but surely that cannot preserving its four-star quality rating for services? Will be an open and transparent way of dealing with planning he also use this occasion to apologise to the leader of applications. Will the Minister look into this issue further? the council for saying that the leader had allegedly said of council tenants, “These people are hard to shift”? John Healey: The material change of circumstances That is totally and utterly untrue, and it is time that the in that case was the offer from the developer, after the right hon. Gentleman apologised for that mis-statement. inquiry, to increase the proportion of affordable housing in the proposals—something that I would have assumed Mr. Denham: I prefer the records of the eight Labour that the hon. Gentleman welcomes. Clearly, it would London local authorities that have frozen council tax have been wrong if the Secretary of State had not then while protecting front-line services. He will be aware of sought the views of the parties at the inquiry to that the impact of local decisions to raise charges for elderly change in the proposals. My right hon. Friend the people and of housing strategies that seem to be designed Secretary of State has acted openly and done the right to deny security of tenure to people who have long thing in seeking those views. He is currently considering enjoyed secure local housing. I do not share his assessment the case carefully. of his local authority’s record—indeed, far from it; I think it is a warning that should be broadcast to tenants Efficiency Savings up and down the country, and I will do my very best to make sure that it is. 2. Mr. Mark Hendrick (Preston) (Lab/Co-op): What guidance he has issued to local authorities on achieving Dr. Alan Whitehead (Southampton, Test) (Lab): Ryanair efficiency savings without reducing front-line services. was recently voted the least family- friendly company in [320997] the country. In the light of that, what is my right hon. 135 Oral Answers9 MARCH 2010 Oral Answers 136 Friend’s view of local authorities that seek to make Clearly, spending plans will have to be set out, but the efficiency savings by instituting two-tier services, with a timing is a matter for my right hon. Friend the Chancellor no-frills basic? of the Exchequer. Mr. Denham: I worry greatly about councils that are Richard Burden (Birmingham, Northfield) (Lab): Given proposing what they call a budget-airline or Ryanair the levels of support that Birmingham city council has approach to local government, with services stripped had from the Government over the past decade, why down to the most basic level. The only people who does my right hon. Friend feel that it has got itself into enjoy decent services are those who can afford to pay such a financial mess, to the extent that thousands of for them twice—once through the council tax, and once jobs are threatened and services to the public are being through charges. For example, I was told the other day put at risk? that Wolverhampton council has made it part of its standing orders that every service should be charged at Mr. Denham: I can understand the concern of my a full-cost recovery rate, unless specifically authorised hon. Friend and other Birmingham Members of otherwise by a cabinet member. Parliament. It is true that Birmingham has not received I think that that approach will leave large numbers of the highest rating, shall we say, from the Audit Commission, people on middle incomes unable to enjoy decent council for the quality of its financial management. The record services. It is a shame that it is being championed by the shows that it has been given resources by the Government Opposition. for tackling worklessness, but that it has failed to devote them to tackling that problem. It is a shame that Julia Goldsworthy (Falmouth and Camborne) (LD): Birmingham’s Conservative-Liberal Democrat council The Secretary of State seems very keen to talk about is saying that front-line services will have to go, when this year’s Budget settlement, but less keen to talk about issues about how the council manages its resources Government grants looking ahead. What guidance has clearly need to be addressed closer to home. he received from the Treasury about the scale of future cuts that councils will need to make? Does he really Mrs. Caroline Spelman (Meriden) (Con): Instead of believe that efficiencies alone will be able to halve the shamelessly scaremongering, it would have been nice if deficit? the Secretary of State had acknowledged that local government has already had considerable success in Mr. Denham: I certainly believe that the budget reduction delivering efficiency savings. Can he understand why programme set out by my right hon. Friend the Chancellor councils feel so furious about being instructed to meet of the Exchequer in the pre-Budget report is a credible the £250 million shortfall in the Prime Minister’s latest one. It can be delivered in local government without commitment to personal care? The Government define damaging front-line services, provided that the hard a new burden as decisions are taken to deliver efficiencies. My Department “any new policy or initiative which increases the cost of providing set out in the PBR where we expect savings to be made local authority services.” through operational efficiency and through savings on Will he explain which part of that £250 million is not particular local government services. That can be done covered by that doctrine? so that members of the public see their services protected and improved where they use them. Mr. Denham: It is a shame that the hon. Lady has not Julia Goldsworthy: The problem is that the Institute welcomed the fact that the Prime Minister’s proposals for Fiscal Studies thinks that that is simply not possible, for free care at home for those with the highest needs and that deep cuts will follow in years ahead.