House of Commons
Thursday 14 November 2024
The House met at half-past Nine o’clock
Prayers
[Mr Speaker in the Chair]
Oral Answers to Questions
Environment, Food and Rural Affairs
The Secretary of State was asked—
Budget: Impact on Farming Communities
The Labour Government have committed £5 billion to the agricultural budget over the next two years—the biggest budget for sustainable food production and nature recovery in our history. It is good for British farming, it is good for the country, and it should be welcomed by the Opposition.
This week, the president of the National Farmers Union of Scotland, Martin Kennedy, said:
“The new UK Government’s first budget…hammered hard-working family farms and crofts with crippling tax bills”.
The Minister has accused the Conservatives of scare- mongering about Labour’s family farm tax. Is the National Farmers Union of Scotland also scaremongering?
I talk regularly to the National Farmers Union of Scotland. I respect it fully, but I genuinely say, as I have said on many occasions, that we need to look closely at the figures and look at the detail. We will find that the vast majority of farmers in this country will be fine.
I call the shadow Minister.
The Minister’s response to my hon. Friend’s question highlights his arrogance on this issue. He constantly keeps saying that we need to look at the detail, yet his Department and the Treasury disagree on how many farms will be impacted by as much as 40%. In fact, as he knows, the figures being repeatedly regurgitated by the Government consider only past claims for agricultural property relief, not those combined with business property relief, which is just as important. Why? Because the Treasury does not have the data. We need comprehensive detail on this policy to properly understand the impacts of his family farm tax. I ask this for a third time in this House: will he release a full impact assessment—yes or no?
We seem to be discussing this endlessly. The figures on agricultural property relief are absolutely clear. I have kept asking people to look at the detail, because what they will find—listen to the tax experts and the people who have actually looked at the policy in detail—is that fewer than 500 farms will be affected. That is the reassuring message that the Conservatives should be conveying to British farmers.
I call the Liberal Democrat spokesperson.
Britain’s farmers, who feed us and care for our environment, deserve better than the betrayal they received under the last Conservative Government, and better than the attacks in this Government’s recent Budget. In Cumbria alone some 1,400 family farmers, many of whom live on less than the minimum wage, will be hit by this tax, but the more immediate threat to farming is the Government’s rash decision to cut the basic payment by 76% next year. That will hit livestock farmers, upland farmers and dairy farmers, and destabilise the whole industry. Will the Minister think again?
The changes we have made this year are the biggest boost to sustainable farming that this country has seen—that is the agricultural transition. The Liberal Democrats have always been flaky on this issue, and they have never been able to make up their minds what they think about it. We are determined to tackle the extreme climate crisis globally; they seem to think it is not happening.
Fly-tipping
May I begin by wishing His Majesty the King a very happy birthday? I am sure the sentiment is echoed on both sides of the House.
Fly-tipping has increased after years of Conservative failure, leaving a plague of dumped rubbish across our streets, parks and cities and imposing huge costs on taxpayers and businesses. This new Labour Government will end our throwaway society and stop the avalanche of rubbish filling up our streets by increasing recycling rates, reducing waste and cracking down on waste crime.
In 2022-23, North Warwickshire borough council recorded 912 incidents of fly-tipping and took 172 investigation actions, yet only one fixed penalty notice was issued. This meant that farmers often picked up the cost of removing the problem, and criminal gangs were allowed to get away scot-free. Does the Minister agree that more must be done by the council to prosecute incidents of fly-tipping?
I can tell my hon. Friend and constituency neighbour that local authorities have the power to issue fixed penalty notices—on-the-spot fines—of up to £1,000, but one fixed penalty notice is completely inadequate given the scale of the problem she outlined. The low rates of fixed penalty notices and prosecutions mean that this is a consequence-free crime. We are on a mission to improve that, and I hope her council will work with us to improve its record.
Sandwell Litter Watch does a great job of keeping our streets clean, but it and the council cannot overcome the selfish behaviour of fly-tippers, who dump rubbish all over the borough, from Yew Tree to Oldbury. Incidents of fly-tipping in Sandwell are now double the national average. Will the Minister set out further how the Government are working with councils to catch and punish these dreadful fly-tippers?
I pay tribute to Sandwell Litter Watch, and to Destination Barr Hill in my constituency, who get out and about every weekend to clean up other people’s mess. We will crack down on fly-tipping, establishing clean-up squads and forcing those who dump rubbish or vandalise our fields to join in the clean-up. The National Fly-Tipping Prevention Group has produced a guide on how local authorities can present robust prosecutions to support tougher sentences. The Government will also explore further options with the Ministry of Justice’s sentencing review.
I am afraid that I have to add to the litany of terrible statistics about fly-tipping in rural areas: there were over 1,500 incidents of rural fly-tipping in my constituency of Redditch, with only one fixed penalty notice given to an offender. Can the Minister tell us more about how she hopes to work with local authorities like mine to ensure that the people committing these crimes are brought to justice?
I understand that my hon. Friend’s council has just changed political colour, so I hope that the new Labour administration will take the problem a lot more seriously. I am aware that waste permit exemptions allow low-risk waste activities to be carried out under a registration scheme, and that that can be abused by criminals. Let us not be under any illusion: there is serious organised crime in this area. I am considering proposals to tighten the regime, and I am happy to speak to my hon. Friend’s council about how we tackle this together.
Fly-tipping is a growing concern among residents of Stafford, Eccleshall and the villages. Many constituents are increasingly frustrated with the persistent illegal dumping of waste. Will the Minister meet me to discuss how her Department is cleaning up the mess left by the last Government and how the proposed measures will directly address fly-tipping and improve the situation for my constituents?
I am aware of some serious incidents in my hon. Friend’s constituency, including one where a significant amount of rubbish was fly-tipped on a driveway near a school and pupils suffered bad health impacts. I am concerned that the carrier, broker and dealer regime that the last Government left is far too weak and not fit for purpose. I am actively considering how the regime can be reviewed, and I will be happy to meet my hon. Friend to hear her input.
It is nice to see the hon. Lady back in the House and elevated to a Government position—well done. The Northern Ireland Environment Agency has revealed that it has cleaned up some 306 illegal waste sites in the last two years, with taxpayers footing the bill of half a million pounds—equivalent to 15 nurses’ wages. What discussions has the Minister had with the Minister in the Department of Agriculture, Environment and Rural Affairs back home in Northern Ireland about the cost associated with fly-tipping?
I thank the hon. Gentleman for his kind remarks. I met his colleague from DAERA at an inter-ministerial group in September. I am aware of the concerns in rural areas about fly-tipping, which blights swathes of our countryside. I am working with the National Farmers Union and others through the National Fly-Tipping Prevention Group to promote good practice, including on private land. We know from the national waste crime survey that 86% of landowners and farmers have been affected by this terrible crime.
Food Security
The hon. Lady will know that there are many facets to food security, but the £5 billion budget settlement for the next two years sends an important message to food producers about the stability and continuity they can look forward to. Our work on supply chain fairness will add to that, and we will be making more announcements in the coming weeks and months.
Today, the Chancellor is hailing the benefits of free trade in a plea to Donald Trump. However, any future trade deal with the United States will enable cheap food, such as hormone-treated beef, to flood our markets, which would be devastating for farmers and food security. Will the Secretary of State take this opportunity to rule out any trade deal that undermines our British farmers?
We have always been very clear that we will do nothing in trade deals that would undermine this country’s important standards.
I call the shadow Minister.
Food security is national security, and underpinning it are farmers and farmland. Labour’s ill-judged and heartless family farm tax will put all of that in jeopardy: family farms lost; tenant farmers unable to continue farming; communities hollowed out; rural mental health damaged; and precious food-producing land lost to developers or investors. No farms, no food. No farmers, no food. Will the Government please now admit that they have got this catastrophically wrong? Will they do the right thing by reversing this farm tax to protect our country’s food security?
I welcome the hon. Gentleman to his place. Let me say once again that it is important to treat this subject carefully. We must look at the facts and listen to people who know about it. I was asked earlier by someone else whether this measure was wrong, but we should look at what Paul Johnson of the Institute for Fiscal Studies and other tax experts have said. There are many ways in which this can be managed, and I encourage the hon. Gentleman to join me in reassuring British farmers about their future.
Flood Resilience
I am sure the whole House will join me in expressing sympathy with the communities of the Valencia region and across Spain following the dreadful flooding.
This Government’s floods resilience taskforce marks a new approach by national, regional and local government, and by flood risk partners, to better co-ordinate flood preparedness. It met on 12 September, with 40 attendees from 27 organisations agreeing actions including sharing learning from recent floods. This Government will invest £2.4 billion over the next two years to improve flood resilience by maintaining, repairing and building flood defences. Yesterday, at the Association of Drainage Authorities conference, I announced that we will allocate a further £50 million to the internal drainage boards.
I also send my best wishes to the citizens of Valencia and the surrounding region.
As the Secretary of State knows very well, the village of Upper Tean is frequently affected by flooding and sewage discharges. After visiting the Environment Agency, it was suggested that the parish council should set up a flood action group to help to tackle the causes and prevent further impacts of flooding. Will the Secretary of State and the Minister responsible for flooding meet me to discuss the support they can offer to the village in setting up a flood action group?
I was delighted to hear that the village is proactively setting up a flood action group. Of course, I appreciate the wonderful work that my hon. Friend is doing to support the village. The Government fully support collaboration between risk management authorities, including local Environment Agency teams and local communities, and we are committed to hearing from people on the ground via the new taskforce. Of course, I would be happy to meet them.
I welcome my hon. Friend’s answer. We talk a lot in this House about extreme weather and flooding, but we do not talk enough about the vital role that our internal drainage boards play in protecting and keeping safe our agricultural land and farming. I welcome the Government’s inclusion of the internal drainage boards on the taskforce, and I welcome the money that the Minister put into the system yesterday. That is in stark contrast with the first actions of the 2010 Conservative Government, who cut flood defences by a horrifying 27%.
Will the Minister join me in congratulating the work of my internal drainage board and outline how she will work with it in future?
I was delighted to speak at the Association of Drainage Authorities conference yesterday, to champion its work and to announce that, after listening to it very carefully, we will provide £50 million over two years—[Interruption.] In answer to the chuntering, the first part has already been spent.
Many of my constituents who live south of Salisbury are concerned about the interaction between flood risk assessments and new house building. Will the Minister assure the House that her work is fully integrated with the Government’s house building plans so that people can be reassured that, when land is designated for building new homes, flood risk is properly taken into account so that house building is restricted if there are no mitigations in place?
The right hon. Gentleman is right about the importance of ensuring adequate flood protection when we build new homes. Yesterday, we announced a review of the flood funding formula. We will be looking at nature-based solutions and sustainable urban drainage systems, so I hope that offers him some reassurance.
I associate myself with the Minister’s remarks about the flood victims in Spain.
Flood victims in Tenbury Wells were concerned to see in the Budget Red Book that capital spending on flood defences is under review. Will the Minister tell the House whether the bid that she will be making to the spending review for flood defences will be higher or lower than it is currently?
The hon. Lady and I have met many times to discuss the issue of flooding. I can reassure her that we will be investing £2.4 billion over the next two years to improve flood resilience by maintaining, repairing and building flood defences.
Water Pollution
I welcome the new shadow Ministers to their place—as well, of course, the returning one. Under the previous Government, water companies got away with discharging record levels of sewage into our rivers, lakes and seas, leaving them in an appalling polluted state. That is why we are taking immediate action to place the water companies under special measures, with legislation going through Parliament right now that will ban the payment of unfair bonuses to water company executives. We have also launched a commission that will lead a root and branch review of the entire sector, so that we can clean up our waterways for good.
In my constituency of Stratford-on-Avon, the River Avon and its tributaries have been heavily polluted by untreated sewage discharges. We know this because of a citizen science project, which sees residents testing for pollutants regularly along the rivers and brooks. Their efforts are supported by community initiatives such as SafeAvon and groups like Stratford Climate Action. Will the Government commit to and resource a national environmental monitoring strategy to better understand the overall health of water bodies, and will they commit to requiring water companies to monitor volumes as well as duration of storm overflows?
The hon. Lady is quite right to be concerned about the state of the River Avon. We want to move towards a catchment-based approach to water, so we can look at all the inputs and be clear about how we can clean them up. Her point about monitoring will be considered by the commission led by Sir Jon Cunliffe. I hope that she and other colleagues will make their submissions to Sir Jon for his review, which is due to conclude in 2025.
I wholeheartedly welcome the Water (Special Measures) Bill as a package of reforms to end the systemic dumping of sewage into our rivers, lakes and seas by water companies, while huge sums are being paid out by the same firms to shareholders. However, laws are only ever as good as their enforcement, and effective enforcement requires adequate resourcing. Will the Secretary of State consider how the enforcement agencies might be self-funding to a degree, with money raised from fines levied on polluting water firms reinvested into the likes of the Environment Agency?
My hon. Friend makes an important point. He will be reassured to know that precisely the points he raises will be brought into law in the Water (Special Measures) Bill, which will soon be arriving in the Chamber, so that polluters will pay for further enforcement action. That way we have a virtuous circle to help clean up our waterways.
Government Support for Farmers
As the hon. Gentleman would expect, I have regular meetings with all the key stakeholders, and I speak to the National Farmers Union on a regular basis.
My local NFU representative, Gillian van der Meer, makes clear her concerns and those of many other local farmers about the impact of Labour’s family farm tax. I find it extraordinary that the Minister seems to think that, even if we accept his figures, it is okay that hundreds of farms will be affected. I appreciate that a U-turn can be difficult in the Westminster bubble, but I find the public are much more understanding and would welcome the Government realising that they have got this wrong. Does he agree that they have got this policy wrong and that it is time for a rethink?
What I would say is that I have had more meetings with Tom Bradshaw over the past few weeks than I have had for a long, long time, for reasons that are entirely obvious. I was grateful to him for congratulating the Government on getting a very good financial settlement for farmers when he addressed the egg and poultry industry conference on Monday in Newport, Wales. I was grateful that he recognised that.
Nature-friendly Farming
I point the hon. Lady to the extraordinary transformation that is under way, with the huge amount of extra money going into the sustainable farm incentive and our environmental land management schemes this year. It is the biggest transformation on record.
I recognise the very welcome shift towards nature-friendly farming, which offers environmental, social and economic benefits—not just nature protection, but good healthy food and good jobs—yet the farmer-led Nature Friendly Farming Network argues that the agriculture budget needs to be more than doubled to £6 billion a year. Will the Minister press his Treasury colleagues to put more money into nature-friendly farming to secure a sustainable future for UK farming?
I am grateful to the hon. Lady for her support for the transition that we are undertaking. In fact, I was speaking to Martin Lines from the Nature Friendly Farming Network only yesterday evening. He and many of his colleagues are delighted with the transition that we are making, but, as ever, the Greens’ grasp of economics is limited.
Crustacean Die-off
An independent expert panel reviewed the 2021 crustacean die-off event and published its findings last year. It could not identify a clear single cause for the crustacean mortality. The Government are keeping the situation under review and a coastal health programme was recently established to improve coastal monitoring.
The die-off on the north-east coast has devastated an industry that has served Hartlepool for generations. Fishermen, such as my constituent Stan Rennie, and their families want three things: support in the face of their livelihoods being decimated; a plan to repopulate and rebuild their industry; and, finally, answers to how this happened in the first place. Will the Minister meet me and fishermen from Hartlepool to discuss a way forward on this issue?
My hon. Friend is a passionate defender of his community. I extend my sympathy to all those who find themselves under pressure when these kind of events happen and I would be very happy to meet him to discuss the matter further.
International Trade Agreements
Supporting farmers is a priority of this Government. We have been clear that we will protect farmers from being undercut by low welfare and low standards in trade deals. We are also working to reset our relationship with our European friends to strengthen ties and tackle barriers, and helping boost trade to the EU through a UK-EU sanitary and phytosanitary veterinary agreement.
Some farmers benefited from international trade agreements under the previous Government. Unfortunately, it was mostly Australian and New Zealand farmers, not British farmers, who benefited. Will my hon. Friend confirm that this Government will prioritise British farmers who want to export, not least those who want to export to the European Union, through a veterinary agreement with the EU?
My hon. Friend is absolutely right that what happened to the British farming industry was one of the great betrayals of the previous Government. Those trade deals did no credit to our country, but we will take a different approach and develop a much more constructive relationship with our near neighbours. Therefore, the answer to my hon. Friend’s question is yes.
There will be small point in protecting farmers in international trade agreements if Government policy is undermining those same farmers domestically. How many thousands of farmers will it take to clog up Parliament Square next Tuesday before the Government realise that their inheritance tax policy is very deeply flawed?
Once again, I direct right the hon. Gentleman back to the figures from the Treasury, which show that the numbers affected are under 500. That is the answer to his question.
Water Sector Commission
The independent commission on the water sector was launched on 23 October and will be chaired by Sir Jon Cunliffe. It is the biggest review of the industry since privatisation and will report next summer. It will focus on boosting investability, speeding up the delivery of water infrastructure and cleaning up our waterways.
Southern Water is responsible for blighting beaches with raw sewage along Ramsgate, Margate and Broadstairs, yet it plans on increasing household bills by 73% over the next five years, and the chief executive officers of Southern Water have received £4 million over the last five years in bonuses and salaries. Will the new independent commission do something about this egregious situation?
I congratulate my hon. Friend on campaigning for her local water consumers. She is right to point to the wide failings across the system. We have charged Sir Jon Cunliffe with leading a commission that will look at how we can completely reset the sector—regulation, governance and how the sector operates—so that the levels of pollution and failure under the previous Government can never be repeated.
In 2013, the previous Government introduced a rebate of £50 per household on the water bills of customers in the far south-west. With 3% of the country’s population paying to keep a third of our bathing beaches clean on lower-than-average salaries, will the Secretary of State please reconsider the decision to scrap that rebate for constituents such as mine, which was quietly announced just before the recess?
It is important that support is targeted at the most vulnerable, so we will look at what more can be done through social tariffs to support families who are at risk of being unable to pay future water bills. It is right that we prioritise the poorest.
Topical Questions
As we have heard this morning, the public are rightly furious about the filthy, polluted state in which the previous Administration left our rivers, lakes and seas. That is why there is such strong support for the Water (Special Measures) Bill, which is working its way through Parliament. I urge all Members to make submissions to Sir Jon Cunliffe’s review, and to encourage their constituents to feed in to it. This is our chance to conduct a root-and-branch review of the entire sector to ensure that it is fit for the future and will properly serve both consumers and the environment for decades to come.
Research estimates that as many as 170 dolphins and other mammals are caught and killed every year off the Sussex coast, yet no bycatch data is recorded. Will the Secretary of State please outline how he is ensuring that supertrawlers operating in UK waters are fulfilling their legal duty to report marine mammal bycatch to the Marine Management Organisation?
Vessels are, of course, already required to report marine mammal bycatch. We are looking at implementing remote electronic monitoring on larger vessels to gather better data about fishing activities. We are also working to improve our marine environment by ratifying the biodiversity beyond national jurisdiction agreement, enforcing fishing restrictions in marine protected areas, and ensuring that all catch limits are set sustainably.
I call the shadow Secretary of State.
I wish His Majesty the King a very happy birthday.
The Chancellor, the Secretary of State and the Food Minister claim that their family farm tax will affect only a quarter of farms, yet after informed questioning by the National Farmers Union, the Country Land and Business Association, the Tenant Farmers Association and Conservative Members, the Minister has now admitted that the Government need to check their figures. Should the cost of the family farm tax to farming families not have been checked before the Budget?
The data from His Majesty’s Revenue and Customs is crystal clear: three quarters of farmers will pay nothing as a result of the changes. Family farming will continue into future generations, as it should.
The Secretary of State perhaps needs to ask his Food Minister why he said at the Agricultural Industries Confederation conference that the Government are checking the figures. Let me help the Secretary of State out. He can explain the veracity and accuracy of his figures next week, when thousands of farmers come to Westminster to rally against the family farm tax, the delinking of payments, the hike in national insurance and other tax hikes on working farms in the Budget. Will he come?
It is very important that the Government listen to farmers, and of course we will do so, but I know that farmers are reasonable people. They will want to look at the facts and, like everybody else, if they drill into the HMRC data they will see that three quarters of them will end up paying no more under the new system than they do today.
My hon. Friend raises an important point. He is a strong campaigner in his constituency against the failings of the water company and the high levels of pollution resulting from the failures of the previous Government, so I know that he is backing the Water (Special Measures) Bill that is working its way through Parliament, and that he will support Sir Jon Cunliffe’s commission, as we seek to reset the sector by changing its regulation and governance so that it works better for consumers and the environment.
The hon. Lady raises an important question. That is a delicate issue because it has been raised by the European Union, but we are absolutely determined to maintain our position.
My hon. Friend is absolutely right. It is extraordinary, given all the sound and fury from the Opposition, that they did not even spend the money that was available. This Government will ensure that every penny we have gets to farmers, because we are on the side of British farmers, rather than whipping them up in the kind of irresponsible way that the Conservative party has been doing.
The proposal for a carbon border adjustment mechanism was supported by the previous Government, and we have confirmed it. It is complicated in the way it will work, and it will not affect people before 2027-28. The Liberal Democrats have shown once again that when it comes to environmental issues, they cannot be trusted.
Protecting communities from flooding is a top priority. That is why we have launched the flood resilience taskforce and are investing £2.4 billion over this year and the next to improve flood resilience. We have also announced another £50 million investment into the internal drainage boards. I commend my hon. Friend for his work with local flood action groups, and I am keen to hear how the matter progresses throughout this Parliament.
I can certainly ensure that the relevant Minister meets the hon. Gentleman. I hope that he will also feed his views into Sir Jon Cunliffe’s review, as Sir Jon will be considering catchment-wide approaches that will better protect chalk streams.
Will my right hon. Friend the Secretary of State update the House on progress in creating three new national forests, and, as it is my birthday, may I extend to him an invitation to visit Macclesfield forest in my constituency?
I wish my hon. Friend a very happy birthday, and I join him in celebrating the 75-year anniversary of the National Parks and Access to the Countryside Act 1949. That pioneering Labour Government created groundbreaking laws so that every citizen could have access to nature’s beauty. We will protect that access, and we will set up three new national forests—and who knows where they will be?
In our increasingly volatile world, I am sure the Secretary of State will agree that food security is of growing importance to our national resilience. I hope he will commit the new Government to continuing to publish the annual food security index, with the next update coming at next year’s farm to fork summit.
It is a pleasure to take a question from the distinguished former Prime Minister. We are reviewing the data that we can publish, and we want to be as open and transparent as possible. I think that is good for the sector and good for scrutiny, but we will announce in due course precisely how it will operate.
I thank the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Kingston upon Hull West and Haltemprice (Emma Hardy), for coming back to me about the River Hipper scheme, which is of huge importance in my constituency. May I invite her to come to Chesterfield to meet people affected by the flood and see the Holymoorside scheme, which could make a real difference?
It is always a pleasure to work with my hon. Friend, and I know how passionately and well he campaigned for his community during the last floods, and how deeply the situation moved him. Of course I would be more than happy to continue to work with him.
I call the Chair of the Environment, Food and Rural Affairs Committee.
I congratulate the Secretary of State, and indeed the Chancellor of the Exchequer, on the achievement of the Budget: in 23 years in this House, I have never seen such a degree of unity among farming organisations in their response to it. One point on which there seems to be no disagreement is that the removal of the ringfence around agricultural payments to Scotland, Wales and Northern Ireland is a bad move. Nobody asked for it. Why did the Government do it, and what do they expect to achieve with it?
The right hon. Gentleman will be aware that we have announced the biggest Budget for sustainable farming—£5 billion over the next two years—in the history of our country, and that is to be welcomed by everybody in the sector and everybody who cares about it. This is a Government who believe in devolution. We believe that devolved Administrations should have the right to take decisions about their own countries. The consequentials mean that the appropriate level of funding will continue to go to those devolved Administrations, and our support for devolution means that the devolved Administrations will take their own decisions about the best way to spend it.
Chester zoo, in the constituency of my hon. Friend the Member for Chester North and Neston (Samantha Dixon), does important and nationally leading conservation work. Zoos nationwide have faced regulatory uncertainty for nearly three years because of the previous Government’s delay in publishing new zoo standards. Will my right hon. Friend the Secretary of State set out when the Department plans to publish the updated version of the standards of modern zoo practice, to drive improvements in animal welfare and provide certainty to those institutions?
I have visited Chester zoo and seen the wonderful work that it does in species conservation. I will endeavour to write to my hon. Friend to update him on the regulations.
The Government have justified their inheritance tax changes for farmers on the basis that they are concerned about people gaining short-term tax advantage by buying agricultural land. May I therefore ask whether, instead of the sweeping changes that they made, the Government considered an approach that would limit the IHT exemption to those who could demonstrate that the family farm had been in family ownership for a certain number of years? If that approach was explored, why was it not pursued? If it was not explored, why not?
We have had a lot of debate about this issue, and I am perfectly happy to have discussions with hon. Members about the tax regime in general. One of the beneficial aspects of this policy may be to get the generational shift that farming in this country needs so much. There are many parts to this policy. It is a complicated policy, and in future we will have further discussions.
On 2 and 3 November, a massive burst water main in my constituency left 8,000 homes without water for more than 12 hours. The response of the water company, South Staffs Water, was slow, ineffective and secretive. Will the Minister remind South Staffs Water, and all water companies, of their responsibilities to help residents and work with local stakeholders following an incident?
What a tireless champion my hon. Friend has been in campaigning on this issue. She is quite right to feel offended by the poor level of communication she has had from the water company, and I hope that it hears the message loud and clear that water companies need to work with, and communicate more effectively with, Members of Parliament in the areas that they represent.
This week, John McTernan, an adviser to Tony Blair, publicly stated that farming should be treated in the same way that Margaret Thatcher treated the miners, and that it was an industry the country could “do without”. As a farmer, I find this incorrect, offensive and deluded. Does the Minister agree?
Solicitor General
The Solicitor General was asked—
Violence Against Women and Girls
This Government are committed to halving violence against women and girls in the next decade. We are not only fixing the foundations of our economy, but rebuilding trust in our criminal justice system, with an additional £49 million in the Budget for the Crown Prosecution Service. This will mean additional specialists in rape and serious sexual offences, boosting investigators to tackle those awful offences.
Last year, over 3,000 women in Sandwell were victims of domestic abuse. Getting cases through the justice system quicker is vital to breaking the cycle of abuse and protecting victims, so can the Minister set out further what the Government are doing to make sure the police and prosecutors work together to tackle domestic abuse?
I thank my hon. Friend for raising that very important point, and for the work she is doing in this area. For too long, victims of domestic abuse across the country have been let down, but this week, we have welcomed a new domestic abuse joint justice plan between police and prosecutors. That plan will see them working more closely together to support victims, in order to deliver swifter investigation and justice for all.
Prosecutions and convictions for domestic abuse plummeted over the last eight years under the previous Government. Additionally, the time taken to charge domestic abuse cases has increased dramatically. Given the alarming rise in delays, what measures is the Solicitor General implementing to expedite those processes and ensure timely justice for victims?
My hon. Friend raises a powerful point. He is right that between 2016-17 and 2023-24 the number of domestic abuse flagged cases received from the police by the CPS dropped by nearly 36%. We are beginning to see a rebound in those figures, but much more needs to be done. We need a whole-system approach to fix the system, and our domestic abuse joint justice plan will ensure that the CPS and police work more closely together to address those delays from the very outset of a case.
I have been contacted by a constituent who had concerns about how they were treated in a rape case, and about the communication that came from the police and the CPS. What steps is the Solicitor General taking to ensure victims are properly informed all the way through?
I thank the hon. Member for his question, and I am sorry to hear about that specific case. I am of course happy to make contact directly with any local chief Crown prosecutors to address that case. More generally, victim transformation work is taking place across both police and CPS, such as investment in victim liaison officers to make sure that there is a single point of contact so that victims are supported right the way through the criminal justice process.
I welcome the shadow Solicitor General to the Front Bench.
Thank you very much indeed, Mr Speaker. It is an honour to stand at the Dispatch Box again, albeit on the other side of this great Chamber. I hope to work constructively with the hon. and learned Lady on this challenging and very intricate part of Government.
Violence against women and children is abhorrent and inexcusable. It crushes self-confidence and self-esteem in victims, wrecks families and ruins lives. As someone who was a family lawyer for 23 years before coming to this place, I welcome the Government’s mission to halve violence against women and girls within the next decade. To achieve that important goal, what action are the Government taking on prevention and early intervention, and when will the specialist rape courts be introduced?
I welcome the shadow Solicitor General to her place. She brings enormous experience, not only in legal matters but specifically in relation to violence against women and girls, and I look forward to working constructively with her in this area. I also take the opportunity to welcome the appointment of the new shadow Attorney General, and send my best wishes to the right hon. and learned Member for Kenilworth and Southam (Sir Jeremy Wright) as he departs his role.
In answer to the hon. Lady’s question, she is right that the commitment to halve violence against women and girls in the next decade is a cross-Government initiative. Prevention and early intervention are a core part of that; that is why when the VAWG mission board met earlier, there was a real focus on education—how we educate about consent and early intervention, so that we can prevent these cases from entering the criminal justice process.
The Government have announced an extra £49 million in funding to support victims of crime and say that the funding will enable additional staff recruitment at the specialist rape and serious sexual offence unit of the Crown Prosecution Service. Can the Solicitor General confirm to the House the number of additional staff to be taken on? When will they be in place?
The hon. Lady is right to welcome the additional £49 million, which will be invested in those specialist rape and serious sexual violence units in every CPS area, but it is important that the CPS has discretion over how that money is spent and makes sure that resources are directed and targeted at areas where they are most needed, so that we can deliver for the victims of these most serious crimes.
Rural Crime
The Government are deeply committed to addressing the important issue of rural crime; that is why we are strengthening neighbourhood policing in rural areas and implementing stronger laws to prevent farm theft and fly-tipping. In addition, we are recommitted to their being a specialist Crown prosecutor in each CPS area who supports the police in charging and prosecuting rural crime.
I thank the Solicitor General for her answer. The Equipment Theft (Prevention) Act 2023 had support from across the House in the previous Parliament. The statutory instrument to bring in its measures is with the Home Office but has yet to be brought forward. Property seized by the Thames Valley police rural crime taskforce across South Oxfordshire and the Vale of White Horse since the start of 2023 is valued at more than £400,000, with an incalculable impact on farmers’ mental health, wellbeing and anxiety. To improve the rate of prosecutions for rural crime, will the Solicitor General urge her colleagues at the Home Office to bring that statutory instrument before the House?
I thank the hon. Member for raising an important point. I can confirm that we are committed to implementing the Equipment Theft (Prevention) Act and, with that, bringing about real benefits and impacts for farmers suffering from the theft and resale of high-value equipment, with all the stress and distress that that causes.
I am pleased to see the Solicitor General, a good friend of mine, in her place.
A key part of rural crime, particularly in Newcastle-under-Lyme, is waste—waste crime has blighted the lives of my constituents for far too long. May I urge the Solicitor General to do all she can, working with colleagues across Government, to hold the rogue operators of landfill sites to account and make sure that they face the full force of the law?
In a previous life I was an environmental lawyer, so I know just what a scourge those waste offences can be. That is precisely why the work of specialist Crown prosecutors, who work closely with the police in charging and prosecuting such rural crime, will be so important.
Covid-19 Fraud
The Government are doing everything possible to recover the millions in public funds lost to covid-19-related fraud. The Crown Prosecution Service is working closely with investigators to pursue all those who dishonestly lined their pockets with Government money.
In 2021, the previous Health Secretary said in relation to covid-19 contracts that
“where a contract is not delivered against, we do not intend to pay taxpayers’ money”.—[Official Report, 23 February 2021; Vol. 689, c. 758.]
Judging from the figures that highlight the enormous scale of covid-19-related fraud, that was little more than a promise made and a promise broken by the previous Government. I am pleased that our Government have made it a priority to recoup as much of that money as possible from scammers who profited at taxpayers’ expense. However, four and a half years on from the first lockdown, my constituents in Ipswich, many of whom sacrificed so much during the pandemic, will be wondering why it has taken this long, and a change of Government, to take the issue as seriously as it deserves. Can the Solicitor General tell the House whether that is down to the previous Government’s incompetence or lack of effort, or whether it is symptomatic of their more general recklessness?
Order. One of us has to sit down, and it is not going to be me. That was a very long question; the hon. Gentleman could have shortened it. He might want to apply for an Adjournment debate on the subject, which is obviously very important.
My hon. Friend raises an important point. In contrast to the previous Government, this Government are taking action on covid-related fraud. We have heard from the Chancellor that she will be appointing a covid corruption commissioner, who will review and assess all the PPE contracts that were entered into before any are written off. I think I speak on behalf of all our constituents in saying that where money was fraudulently obtained, we want our money back.
Serious Fraud Office
This Government are committed to cracking down on fraud. That is why we have confirmed an additional £9.3 million in funding to improve the performance of the Serious Fraud Office further, enhancing its case management and ensuring better systems for asset recovery.
I welcome the additional money for the Serious Fraud Office. My hon. and learned Friend will know that Transparency International has assessed the UK as having reduced enforcement of foreign bribery measures for the first time, and the last bribery investigation to be publicly confirmed was in 2020. What steps are being taken to ensure that the SFO actively fulfils its role as the primary enforcement body for foreign bribery?
I acknowledge my hon. Friend’s proud track record in highlighting economic crime and his work in exposing dirty money. I met the director of the Serious Fraud Office yesterday in this House. We are working closely together to crack down on corruption, fraud, and bribery, and I assure my hon. Friend that the SFO is working incredibly hard in that area.
In 2023-24, more than 16,000 crimes involving fraud were committed in Scotland. Since crime of that kind is often committed online and observes no borders, will the Solicitor General advise the Chamber on whether the UK and Scottish fraud offices are co-operating on that issue?
My hon. Friend is correct to say that so often these terrible crimes do not respect borders. Fraud that is specific to Scotland is investigated by Police Scotland and prosecuted by the Crown Office and Procurator Fiscal Service, which works closely with English-based agencies and the SFO where it is appropriate to do so. This Government are committed to strengthening the Union, and that extends to law enforcement in this area.
I warmly welcome my hon. Friend the shadow Solicitor General to her post—it is good to see her back—and I thank the Solicitor General for her kind words.
I equally warmly welcome the advent of a “failure to prevent” offence in relation to certain kinds of economic crime. The Solicitor General will agree that the purpose of that exercise is not to engender further prosecutions but to change behaviour. Will she therefore reassure the House that she will work with colleagues across Government to ensure that businesses receive all the advice they need about how to put in place the reasonable anti-fraud measures that will give them a defence under that new offence?
I thank the right hon. and learned Gentleman for his question. Just this week guidance was published by the Home Office in conjunction with other organisational partners and the SFO in relation to preventing fraud, and that will of course entail working with business to ensure that it is operating as effectively as it can for those who are impacted by fraud, both individuals and businesses alike.
Not so long ago a TV programme—I think it was “Panorama”—showed that dirty money and bribery was moving from Latvia to Germany and Northern Ireland, and it clearly showed that international criminal gangs and paramilitary groups are working together. Has the Solicitor General had an opportunity to discuss how better to tackle those gangs, for instance by working better regionally, or by working together with the Republic of Ireland to ensure that we combat those groups?
I cannot comment on any specific cases, but I know from my discussions with the director of the SFO that it is alive to those cross-jurisdictional issues. That is part of the purpose of the additional investment that the Government have provided to the SFO to ensure that its processes, investigations, and case management are as effective and nimble as they can be, including in tackling those cross-jurisdictional issues.
We now come to the Liberal Democrat spokesperson.
I welcome the Solicitor General to her place, and I very much look forward to working with her. I echo the comments of others welcoming the shadow Minister, the hon. Member for Maidstone and Malling (Helen Grant), to her place. The Solicitors Regulation Authority recently labelled the Legal Services Board’s damning report into the handling of the Axiom Ince fraud as merely an opinion. Can the Solicitor General clarify what mechanisms are in place to ensure that the regulator is properly regulated? What actions are being taken by her Department to prevent similar economic crimes to ensure that all constituents, including mine in North Cornwall—one of whom is in the Gallery today—can have confidence in our legal system?
I welcome the hon. Member to his place. He raises an incredibly important point. This Government in general are committed to raising standards and rebuilding trust in the justice system. That means regulators working effectively with investigators in the public interest. He will know that, in accordance with long-established practice, it would not be proper for me to comment on the specific case that he mentions, but I can assure him that we will be working to ensure that regulators are working effectively with investigators in the public interest.
Victims’ Right to Review Scheme
The victims’ right to review scheme is a vital mechanism for ensuring that victims have the right to request a review of certain prosecutor decisions, either not to start a prosecution or to stop a prosecution. We are continuing to work with our partners, including the CPS, so that the victims’ right to review scheme operates as effectively as possible to deliver for victims the justice they rightly deserve.
In my short time in this place, I have been shocked and concerned by the rates of violence against women in my constituency of Monmouthshire. Many constituents have reached out to me for support. I am pleased that the Government are aiming to halve violence against women and girls in the next decade, but can the Solicitor General tell us what proportion of violence against women cases request reviews? How are victims supported through the process, because it is incredibly difficult to maximise their ability to exercise their right to review?
We are looking at the victim’s right to review scheme closely. It is informing the subject discussions that I hope to have later today with the Director of Public Prosecutions. We are also working closely with the Victims’ Commissioner, who is raising issues around how we might reform this process. I can assure my hon. Friend that the CPS is looking at this matter closely. One thing it is introducing is that where no evidence is offered for the most serious rape and serious sexual offences, that decision is reviewed by a deputy Crown prosecutor before it is taken. That oversight is already producing results.
Street Crime
Council leaders and regional mayors play an important role in tackling the unprecedented challenges that this Government inherited. We are committed to working closely with local leaders to deliver the safer streets that our communities deserve. I have already met several deputy mayors, mayors and council leaders to discuss these important matters, and we will continue to do so in the months ahead.
Shoplifting is a major concern for my constituents, businesses and retail workers in Weston-super-Mare, many of whom have contacted me for support. Shoplifting has increased massively, with more than 1,000 cases these past 12 months. That is a 31% annual increase. To reassure my constituents, can the Solicitor General outline what steps she is taking to prosecute those responsible for shoplifting?
My hon. Friend is right to raise this important issue. Shoplifting is a scourge in many of our constituencies. That is why this Government are committed to introducing respect orders and beefing up legislation to tackle persistent antisocial behaviour. We are also working with the CPS to ensure that we clamp down on assaults against shopworkers, which will be part of a new stand-alone offence, and we are re-committing to prosecuting in these core areas.
The Solicitor General will be aware of concerns about knife and violent crime in many communities, including Huddersfield. In particular, there are serious concerns about how children and young people are being criminally exploited in wider county lines gangs. How is the Department working with regional mayors to improve prosecution rates for knife and violence- related offences, and to ensure that those at risk of offending receive targeted interventions?
As my hon. Friend states, knife crime is a scourge that particularly impacts on young people, too many of whom senselessly lose their lives or are injured every year. Mayors and councils will be essential partners in the mission to achieve safer streets. I have already met the deputy Mayor of West Yorkshire to discuss this matter. The prosecutorial piece is part of this Government’s review to crack down on the sale of offensive weapons. The Government are in a hurry. We have already implemented a ban on the possession of zombie-style knives and machetes, but of course there is a lot more that we can and should be doing.
Council Tax
(Urgent question): To ask the Secretary of State for Housing, Communities and Local Government if she will make a statement on the Government’s policy on council tax referendum thresholds in 2025-26.
Since the 2012-13 financial year, local authorities, fire authorities, and police and crime commissioners have been required to determine whether the amount of council tax they plan to raise is excessive. The Secretary of State sets thresholds on excessiveness and knows the referendum principles for different classes of authority. Since 2016-17, those thresholds have also included a social care precept, providing higher thresholds for authorities with social care responsibilities.
Decisions on the council tax levels to set, or whether to hold a referendum to go beyond the referendum principles, sit with councils. But the Government have been clear that we expect the threshold to be maintained at the current level, set by the previous Government. The Office for Budget Responsibility forecast of the last Government assumed that council tax would increase by a 3% core, plus an additional 2% for local authorities with adult social care responsibilities for the entirety of the forecast period. We will set out further details in the local government finance settlement in the new year.
Beyond that, we are determined to support local government and undo the mess that has been created over the past 14 years. That is why at the Budget we announced over £4 billion in new local government funding, including an additional £1.3 billion in the local government finance settlement. That, as the hon. Gentleman will be well aware, has been warmly welcomed by the sector.
Council tax funds about £20.5 billion of expenditure in England on social care, which is 61% of all council funding. It is therefore of huge interest to our constituents. The Prime Minister and Ministers have repeatedly told the House that we need to wait for the spending review and the local government finance settlement to know what will happen with the referendum limit, including at the Dispatch Box yesterday when the Prime Minister told my right hon. Friend the Leader of the Opposition to wait. Shortly afterwards, the press were told that the 5% limit would remain in place.
Answers to parliamentary questions show that the Government are expecting spending power to increase by £3.7 billion, funded by grants of £1.3 billion. That demonstrates that the Chancellor’s Budget has opened up a £2.4 billion black hole in council finances. In addition to that, the County Councils Network has highlighted its concerns that although we have not yet had a formal statement in the House, there are proposals to change the way in which funding is allocated, further depriving local authorities in urban, suburban and rural areas of the funding that they need.
I would like to put two questions to the Minister. First, will he promise the House that funding allocations through the grant mechanism will follow the cost pressures on local authorities and not any other form of indexation or formula, to ensure that places facing the highest costs receive the funding that they need? Next, while nobody would want to see the referendum limits scrapped simply to bail out central Government, the announcement of the 5% constrains local authorities when it comes to their fundraising. Will the Minister tell the House whether it will be our high streets through increased business rates or whether significant cuts to other council services will be needed to fill the Government’s £2.4 billion black hole?
I thank the hon. Gentleman for his questions. Let me take them in turn. The Government are committed to a fair funding settlement for local government. We will set out further details in the usual way in the upcoming local government finance settlement, which will be presented to Parliament.
On the £2.4 billion figure, I am afraid that we simply do not recognise it. I assume that the hon. Gentleman, in his calculations, failed to take account of the over £300 million raised from business rates and £300 million in additional new houses coming along. Yes, it is right that £1.8 billion will be raised through council tax in 2025-26, but, as I made clear, that is because the Government are clear that we are maintaining the previous Government’s policy on council tax, in line with the OBR forecast made in March 2024.
The question for the Opposition is: are they saying that the cap should be abolished, as the Conservative Local Government Association group’s “Rebuilding the Road to Victory” document called for all caps to be removed, or are they saying that the limit should be reduced, which would be contrary to the policy in place when the now Leader of the Opposition was the local government Minister?
I call the Chair of the Housing, Communities and Local Government Committee.
It is worth remembering why a number of our local authorities are facing this decision and the tight financial situation: the funding crisis over the past 14 years, forcing a number of local authorities to make those difficult decisions. A number of our areas are facing major in-year cost pressures from things such as temporary accommodation and special educational needs and disabilities provision. Does the Minister agree that we need to accelerate the house building plan in order to get local authorities back on a level playing field, so that our local residents do not see that cost increase in their council tax bills?
I thank the Chair of the Select Committee for that question. She is absolutely right; after 14 years of the previous Government’s record in office, local government is on its knees. We have a system on the verge of collapse. We had multiple years when in-year spending pressures were ignored. The headroom that we have provided through the Budget—more than £4 billion in new local government funding, which I referenced earlier—will allow us to start to turn that system around and to get ahead of some of the challenges we are facing, whether the pressures on adult social care, children’s services or homelessness costs as a result of temporary accommodation. That is why our house building programme—within my specific remit of responsibility—and, in particular, the increase in social and affordable housing supply that we are committed to, is so important.
I call the Liberal Democrat spokesperson.
The Liberal Democrats are deeply concerned that people are simply paying more council tax for fewer services. That is quite clearly the result of Conservative tax cuts and their failure to tackle social care. As a former council leader, I know that the burden on councils has increased to such an extent that they are forced to make impossible choices. The burden and the costs that councils of all colours have to shoulder as a result of the Conservative Government’s policies must be reviewed. Will the Minister ensure that councils do not have to close libraries, cut bus routes and reduce road repairs in order to meet the growing demands of the most vulnerable members of our community? Despite the announcement in the Budget, will the Minister recognise the LGA analysis that councils face a £6.9 billion shortfall because of inflation, increased wage demands and demand pressures on local services?
The Government certainly recognise the pressures on local authorities and the burdens placed on households as a result of 14 years in which local government was run down. We are determined to turn that situation around, as I have said, by providing the headroom that local authorities need to get ahead of some of the challenges that they have faced for many years. That is why the more than £4 billion in new local government funding announced at the Budget, including an additional £1.3 million in the local government finance settlement, has been so warmly welcomed. That brings the total real-terms increase in core spending to around 3.2%. We remain committed to the 5% referendum cap—we believe that is the right threshold. To protect the most vulnerable, we are also committed to the single-person discount and local council tax support schemes, under which, as I am sure the hon. Gentleman is aware, more than 8 million households do not pay a full council tax bill.
I really do not know how the Opposition spokesperson, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), can stand there and talk about cuts and shortfalls with a straight face. We know where responsibility lies—and on the Lib Dem Benches as well. [Interruption.]
Order. I think that the hon. Member for Thirsk and Malton (Kevin Hollinrake) will want that Yorkshire cup of tea. It will come very quickly if he carries on. I call Clive Betts—another Yorkshireman.
Let me take my hon. Friend on a trip down memory lane. When I first became a councillor—only 48 years ago—councils had the freedom to raise rates for domestic and non-domestic property. Should we not, at some point, start a conversation with councils and the wider public about whether thresholds at all are appropriate? Councils in this country have less freedom to raise local taxation than virtually any other councils in western Europe. Council tax itself is regressive, both between individuals and between different local authorities. Can we not start that conversation at some point?
I thank my hon. Friend for that point, and I will relay it to the Local Government Minister. On the general principle, we are determined to rebuild local government from the ground up. That is why we are providing multi-year funding settlements to councils and removing a number of ringfences, and are committed, as I said, to fair funding. On his general point about the Opposition, I completely agree. It reminds me of a phrase my nan used to use: “More front than Harrods,” she used to say. That is what Opposition Members have.
Will the Minister rule out additional council tax bands being among any changes that the Government make?
I say to the right hon. Gentleman that we are not talking about council tax bands in this urgent question; we are talking about the thresholds that remain in place. We are committed to those thresholds. As I am sure you would expect, Mr Speaker, we will set out more details about the local government finance settlement at the appropriate point next year, in the usual way.
Areas like Hull city council were savaged by the previous Government when it came to funding—absolutely savaged, to the point where they were almost on their knees. Will my hon. Friend the Minister tell the House what the Government are doing for areas of high deprivation like Hull?
My hon. Friend is absolutely right. The damage done to local government over the 14 years in which the Conservatives were in office is profound. We have inherited, as I said, a system on the verge of collapse. We are absolutely committed, as part of rebuilding that system from the ground up, to a fair funding settlement. As I say, the Minister for Local Government will announce more details in the upcoming local government finance settlement in the new year.
Local authorities across the country will welcome multi-year settlements, so they can plan for the future. However, does the Minister have any plans whatever for a revaluation of properties, given that properties were originally valued back in 1992, when council tax began? The hon. Member for Sheffield South East (Mr Betts) and I produced a Select Committee report on what could be done to ensure that councils need not be strictly neutral in terms of finance, and could revalue properties to bring valuations up to date.
The hon. Gentleman tempts me to discuss the local government finance settlement ahead of it being formally presented to the House. I am afraid I cannot do that, but the Government have heard his point, and I will ensure that it is passed on to the Local Government Minister.
As a councillor, I saw 14 years of austerity and cuts to local government, and a 93% cut equivalent for my council in Medway. The opposition, the Medway Conservative group, recently stated that it would not only scrap the recent council tax cap, but introduce a local income tax on residents. Does the Minister agree that there needs to be consistency on this issue, whereas the Opposition’s approach is to say, in one case, “Scrap the cap,” and in another, “Keep it”?
My hon. Friend is absolutely right and we still have not had an answer: we do not know the Opposition’s position on thresholds. [Interruption.] We are in government, as the hon. Member for Thirsk and Malton (Kevin Hollinrake) chunters from a sedentary position, and we have confirmed that when it comes to thresholds, we intend to maintain the position as it was under the previous Government, and as baked into the Office for Budget Responsibility forecast for the spending period. The Opposition really do have to answer this question: are they saying that the thresholds should be removed or increased, or are they saying that they should be reduced and core services cut?
Unfortunately, it is not for the Opposition to answer the questions—they are in opposition.
The Chancellor and the International Monetary Fund are known to favour ending council tax and replacing it with a wider property tax. The Welsh Labour Government tried to revalue all the properties in Wales for council tax purposes. Can the Government rule out doing either of those things?
I am not going to get into speculating about more fundamental reform of the council tax system. As I have in a number of my responses to this urgent question, the Government will set out their position on the thresholds, and on other matters in respect of the local government finance settlement, at the appropriate point early in the new year.
York is the lowest-funded unitary authority in the country, but has one of the highest costs of living. That puts real pressure on it. We are also among the poorest-funded for health, fire and police services. When the Minister looks at the funding formula for local government, will he look at the presumptions made, to ensure more equity in the way it is put together?
As I have said repeatedly— I commit to it again—we are determined to ensure that there is a fair funding settlement for local government, and as I have said, more details will be forthcoming in the settlement early next year.
Labour used to say that it would freeze council tax. Can the Minister now confirm that its policy is actually to put council tax up because of the flawed, broken promise on national insurance?
No, that is not the case. We are maintaining the policy of the previous Government, which, as per the OBR forecast, estimated that £1.8 billion will be raised through council tax. The position of the Government is that it will maintain the thresholds. If the hon. Gentleman thinks differently, he should tell House what his position is on thresholds: should they be reduced or increased?
I am pleased about the support for first and second-tier councils and the commitment to fair funding, which will make a real difference in, for instance, Cornwall. However, in unitary authorities such as ours, where a great many services have been shared, larger town councils have had to step up and take the strain, but have not had the grants and other measures that have been available to those first and second-tier councils. Could the appropriate Minister meet me to discuss the position of larger town councils in Cornwall?
I am more than happy to commit the Local Government Minister to a meeting with my hon. Friend.
During Prime Minister’s questions yesterday, the Government accepted that they were giving councils a maximum of £600 million, but the Local Government Association has said that there is £2.4 billion worth of pressure. Does the Minister accept that councils will have to increase their tax by about £1.8 billion to fill the gap between what the Government are offering them and what they need to provide local services?
As I have made clear, we do not recognise the £2.4 billion figure. It fails to take into account increases that I have already mentioned, such as the £300 million increase in business rates income and the £300 million increase in income from new, additional houses. The hon. Gentleman is absolutely right that we expect council tax to raise £1.8 billion in 2025-26, but that is in line with the previous Government’s spending plans and baked into the OBR forecast as of March 2024.
As a former deputy council leader, I am somewhat amazed by the collective amnesia of Conservative Members. The hon. Member for Ruislip, Northwood and Pinner (David Simmonds) spoke of what “constrains” local government spending power. Does my hon. Friend agree that it is 60% cuts, such as those that Southampton city council has suffered for 14 years, that have really reduced that spending power, and does he agree that rather than faux outrage, what we need is an apology?
I absolutely agree with my hon. Friend. We deserve an apology, but I doubt that we will get one. Before 2010, it was vanishingly rare for councils to fall into serious financial difficulty. Since then, nine councils have been affected in just 14 years. There is a pattern here. For too long, the Conservative Government not only failed to carry out their duty to local government, but hollowed out frontline services and crashed the economy. We are turning that around with the support that we are providing to local government in the Budget. We will set out more details in the local government settlement early next year, as I have mentioned.
As the Minister will know, although we do not have council tax per se in Northern Ireland, the pressures on our family finances are on a par with those on the UK mainland. The Government need to be clear about just how much further the finances of average families will be stretched, because this is a very worrying trend. What extra help can families, especially disabled families, expect to receive this year?
I thank the hon. Gentleman for his question, which relates to an earlier one. I think that, in the urgent question, the Opposition failed to account for the various other sources of support that we are providing for families. We are continuing the household support fund—that is £1 billion. There is a £1 billion uplift for special educational needs. There is UK shared prosperity funding of £900 million—the list goes on, but if the hon. Gentleman wishes to discuss the specific conditions in Northern Ireland further, I am more than happy to pass on that request to the Local Government Minister.
I refer the House to my entry in the Register of Members’ Financial Interests: I am a vice-president of the Local Government Association; Opposition Front Benchers might want to reflect on that.
My hon. Friend mentioned front; I could talk about the Opposition’s brass neck in talking about concerns about the pressures that local councils face. Does he agree that 14 years of Conservative austerity, initially with the Liberal Democrats, devastated the ability of many councils, including Luton council, to provide much- needed services to families in our constituencies?
I have been a local councillor, as have many Members of this House. The hon. Member for Ruislip, Northwood and Pinner (David Simmonds) has been a council leader, so he will know what has happened to the system over the past 14 years. The Opposition continue to claim that there is a multibillion-pound black hole in local council budgets. When asked how they would fix it, however, they said, “It’s not for us to do; we’re in opposition. It’s for the Government.” It is a classic policy of having no plan to fix the mess. They have provided no clarity on their position on thresholds, and failed to take responsibility for what they did over 14 years in government.
My Conservative-controlled council in the London borough of Bexley had to apply for a capitalisation order three years ago and make 15% of our staff redundant. Despite that, it still overspent its budget every month for over two years, and is currently overspending on the safety valve agreement made with the previous Government. In addition, the Conservative leader of the council, in responding to a question from me last year, accepted that she was part of the LGA Conservative group executive that published a manifesto last year asking their own Government to remove caps on council tax. Given that, does my hon. Friend agree that it is rank hypocrisy for the Conservative party to complain now about black holes in council finances?
I absolutely do, and the Government are determined to extract from the Opposition some clarity on their position on thresholds. Do they agree with the LGA Conservative group, which has called for the caps on council tax to be removed? Do they want those caps to be reduced? We are still none the wiser. Hopefully, we can find out in the weeks and months to come.
As a member of a council for more than 30 years—like other Members of this House, I am still one—I have to say that, in the last few years, I have not met a single councillor from any political party across the local government family who does not believe that local government finance is in its worst state for decades. The latest LGA figures indicate that in Labour authorities, council tax is £276 lower than in Conservative authorities. Does the Minister agree that this shows that Labour councils, the Labour party and the Labour Government provide better value for money?
My hon. Friend is absolutely right. Labour councils charge less on average than Tory councils, and the councils with the lowest rates of council tax are all Labour. Council tax bills in Labour councils are on average £345 less than in Tory councils. When it comes to local government financing and council tax pressures, people are right to vote Labour. It will ensure that their council tax is lower than if they were under a Conservative local authority.
I am a former local government leader. Does the Minister agree that we should thank local authority leaders, especially Labour leaders such as Pete Marland at Milton Keynes city council, for keeping services during 14 years of austerity? Milton Keynes city council has kept weekly bin collections, kept children’s centres open and reduced rough sleeping, while keeping council tax lower than in its neighbouring Tory authorities. Does the Minister agree that instead of using local authority leaders to make cheap political points, the Conservative party should thank them and apologise for 14 years of austerity?
My hon. Friend makes a good point. I extend the Government’s appreciation to all local government leaders—I mean that in a cross-party spirit—for what they have done to keep services going despite the pressures that they have faced over the past 14 years, when the previous Government ran down local government. We should thank local government leaders, and this Government do. We want to consult them on how we rebuild the system after 14 years of pressure, and we would be more than happy to work across the Chamber and have a mature, cross-party conversation about we fix this mess. That will not happen if the political game-playing from the Opposition continues.
National Insurance Contributions: Healthcare
(Urgent Question): To ask the Secretary of State for Health and Social Care if he will make a statement on the impact of changes to employer national insurance contributions on primary care providers, hospices and care homes.
I am grateful to the hon. Member for asking this important question. It gives me the opportunity to say to GPs, dentists, hospices and every part of the health and care system that will be affected by changes to employer national insurance contributions that this Government understand the pressures they face and take their representations seriously. The Chancellor took into account the impact of changes to national insurance when she allocated an extra £26 billion to the Department of Health and Social Care. There are well-established processes for agreeing funding allocations across the system, and we are going through those processes now with this issue in mind.
This Government inherited a £22 billion black hole in the public finances, broken public services and a stagnant economy. Upon taking office we were told that the deficit the previous Government recklessly ran up in my Department alone would mean delivering 20,000 fewer appointments a week instead of the 40,000 more we promised. The Chancellor and my right hon. Friend the Secretary of State were not prepared to see further decline in our NHS. That is why we put in an extra £1.8 billion to stop the NHS going into reverse this year.
We built on that at the Budget, delivering the significant investment that the NHS needs to get back on its feet, backing staff with investment in modern technology, new scanners and new surgical hubs, and rebuilding our crumbling primary and secondary care estate. Alongside that, we delivered a real-terms increase in core local government spending power of around 3.2%, which will help to address the range of pressures facing the adult social care sector, including £600 million in new grant funding for social care. We are now working through exactly how that money will be allocated, as per normal processes. As the Secretary of State set out yesterday, we will ensure that every pound is invested wisely to deliver the Government’s priorities and provide value to taxpayers.
The Department will set out further details on the allocation of funding in due course, including through NHS planning guidance and the usual consultations, including on the general practice contract. As part of these processes, we will consider the impact of changes announced to employer national insurance contributions in a fair and open way over the next five months, before the changes come into force in April 2025.
I draw the House’s attention to my declaration of interests.
Many in the health sector will have been pleased to hear the announcement of the extra funding for the NHS, only for their joy to be struck down by the realisation that a manifesto promise not to raise national insurance contributions had been broken. That was compounded further by the discovery that a raft of frontline care providers—care homes, hospices, care charities, pharmacies and GPs, to name but a few—will not be exempt from the NI rise, leaving them with crippling staff bills and the threat of closures and redundancies. The hospice sector expects the cost to be £30 million—closures and redundancies. The initial assessment of the cost to GPs is £260 million—closures and redundancies, at the expense of 2.2 million appointments. For the care sector, the changes will cost £2.4 billion, dwarfing the £600 million in social care support that was announced. Does the Minister accept that it is inevitable that council tax will have to rise to support the increase in NICs?
For the first time, the National Pharmacy Association has announced collective action. Its chair said:
“The sense of anger among pharmacy owners has been intensified exponentially by the Budget, with its hike in national insurance employers’ contributions and the unfunded national living wage increase, which has tipped even more pharmacies to the brink.”
Will the Minister clarify who is exempt from NI? Will the Government admit that they got it wrong and make a change? The Prime Minister, Health Secretary and Chancellor have all said that allocations will be made “in the usual way”. Will the Minister clarify what the usual way is? Will mitigations be put in black and white to the House and the public? Is this part of the £20 billion, or new funding?
More importantly, will the Minister lay out a concrete timetable for hospices, care homes, GPs, pharmacists and all other allied health professionals, who are making decisions now? This seems to be another example of a big headline from the Labour party but no detail.
Well, really. I am quite dumbfounded by the hon. Gentleman’s response. I respect him for his professional practice, and he knows the state of the NHS that we inherited from the previous Government, as reported in Lord Darzi’s report. He talks about joy, but there was no joy when we inherited the mess they left back in July. He talks about people being tipped to the brink, and they absolutely were, as Lord Darzi made clear.
As I said, we will go through the allocation of additional funding in the normal process, which will be faster than under the previous Government because we are committed to giving the sector much more certainty. The normal process, as the hon. Gentleman should know from his time in government, is to go through the mandate and the planning guidance and to talk to the sector about the allocations due next April, as I said in my opening statement.
Does my hon. Friend join me in welcoming the Opposition’s new interest in social care? Does she further agree that the problems that social care faces owe more to the previous Government’s failure to do anything with Andrew Dilnot’s 2011 report than they do to anything that is happening now with national insurance?
My hon. Friend makes an excellent point. When I joined this House in 2015, I remember that the first act of the new, non-coalition Conservative Government was to take the legs from underneath that social care commitment by postponing the Care Act 2014. They cynically said at the time that they would bring it forward by 2020, which they thought would coincide with the next general election. We all saw how that went.
I call the Liberal Democrat spokesperson.
The increase in employer national insurance contributions will erode the very investment in the NHS that the Budget sought to prioritise. Katie, a GP from Lindfield in Mid Sussex, wrote to me saying that the NICs increases
“serve to directly undermine access and patient care.”
The Government have promised to recruit more GPs, but hiking national insurance puts that pledge in jeopardy. Surgeries are set to see eye-watering increases in staff costs, equivalent to 26,786 appointments in West Sussex alone. GPs will have no choice but to cut services and staff numbers, and patients will pay the price.
Does the Minister agree that stronger primary care, with faster appointments and fewer people having to go to hospital, is better for both the NHS and patients? If so, will she protect services and press the Chancellor to end this GP penalty?