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Local Government Finance

I am sure that the Minister will provide some figures in due course. We have heard from Ministers all the ways in which councils can save money. Of course there are many ways in which that can happen without front-line services being affected; the reality is that councils have been very good at that over the years. Through the period of the Labour Government, councils were forced to find about 2% in efficiency savings, year on year. Over the past 20 years, in fact, they have generally been much better at that than central Government. Councils have a good track record. If the cuts were not so front-loaded, councils would have had more time to prepare and consider efficiency savings. Cuts to services cannot just be dreamed up overnight; they are often the product of complex negotiations between councils and other public bodies to make sure that the agreements are proper and genuinely deliver savings. I have just had information about what is going on in Sheffield. Together with Government Departments and other public agencies, Sheffield city council is embarking on a look at the whole public estate—the buildings that the public sector owns or leases, and operates. With central Government Departments and agencies, the council is trying to get better value for money from the whole public estate. That programme cannot be delivered overnight. There could be very large savings if it is carried out properly, but it must be done in a considered way, with everyone working together. The council cannot simply click its fingers and say that a certain number of millions of pounds in savings are coming next year. The process takes time. Many of us have been trying to argue that the savings can probably come about, but that they will take time. In the meantime, front-line services are being hit. Concessionary bus fares for young people in Sheffield increased from 40p to 50p this year and will go up to 60p next year. Young people always appear to be getting the brunt of the cuts—tuition fees, the education maintenance allowance and the cuts to youth and career services. The other day, people at a school that I was visiting said that work experience has now stopped because Government funding to assist it has stopped and employers are not responding. All those things are happening to young people. Sixty pence for a bus fare may not seem a lot, but when the Youth Parliament in Sheffield did an assessment of young people's needs two or three years ago, buses came out as top of the list of things that are important to young people, as they mean mobility, independence and not having to rely on other people to get around. Of course, we are seeing cuts in care services for the elderly. Let us congratulate councils such as Sheffield, which is cutting those services by only 5%, when 11% is coming off its total budget, and it is trying to concentrate on administration, management and back-room services. The council is trying to prioritise cuts on back-room services—15% in human resources, 14% in legal services and 26% in IT. But do not let us pretend that legal services, IT and other such services can simply be cut with no eventual impact on front-line services. If we are to make all the changes to the public estate that I mentioned, we will need legal officers in the council. Back-room services are important for the delivery of an efficient front line. Sheffield council has decided to move to fortnightly refuse collections and to improve its recycling offer. That will save £2.5 million a year, and although it cannot simply exempt those services from the savings, it will try and improve its recycling. The Secretary of State has a view—presumably shared by Ministers—that such matters are all about localism until he has a particular policy or pet project that he wants to see implemented. He believes in weekly bin collection. That is up to him. The idea is that having abolished the vast majority of ring-fenced grants—and I support the Government's policy on that—we should suddenly invent a new ring-fenced grant for this one issue. It is not quite a new ring-fenced grant, however, because the grant is not in place. Perhaps we may call it a new ring-fenced idea. Local authorities now have to draw up budgets and decide what to do. They must be prudent, but when considering how their services will be delivered next year, they cannot take account of money that may arrive under a scheme that has not yet been announced. How on earth do Ministers expect local authorities to respond to their view of the world regarding refuse collection if they trail a grant in advance that will perhaps no longer be in place when councils start to formulate their budgets? Councils have no idea whether they will get any money, what will be the criteria for the scheme, how much money there will be in the first, second and third years, and when the money will run out, leaving them to pick up the bill. Is it not a disgrace for Ministers to trail such a scheme, and then criticise councils—just as the Deputy Prime Minister criticised Sheffield council—for moving to a fortnightly refuse collection? Ministers say that councils should instead take advantage of Government money that has not yet been announced. That is a ridiculous way to run anything. If a parish council ran its affairs in such a way, Ministers would be on their feet, proclaiming that it was inefficient and incompetent. Labour Members can therefore say that this Government are inefficient and incompetent in their handling of this issue. One or two other points have been raised. Of course we want to see the voluntary sector contribute, whether to the big society or to the delivery of better services for their communities. Again, I congratulate Sheffield council because it is cutting money to the voluntary sector by just 5% this year, compared with the 11% cut to the total council budget. The voluntary sector depends on public sector employees working with it to deliver services. All the volunteers in my constituency who take part in environmental improvement schemes rely on two council officers, with a bit of seed money to provide training and materials. That is how it works. We cannot divorce the voluntary sector from the rest of the council services. Neither can we divorce private jobs from public jobs. More than 550 public sector employees in Sheffield city council will lose their jobs, or posts will be held vacant, as a result of the council's budget proposals. Fortnightly bin collections, however, are outsourced to Veolia, so it will be not public sector workers who lose their jobs but those in the private sector who are employed by that company. We cannot divorce the public and private sectors. The cuts that have necessarily been made by councils up and down the country will affect private sector employment as well as public sector employment. Orders from councils will be reduced as they will have less money to spend, and private sector companies will suffer as a result. The idea that private sector companies will grow jobs on the back of the cuts is fallacious. That is why the economy is heading for recession. I conclude with one further point about the fire service. The other day, we went to see the Minister with responsibility for the fire service, who is responding to this debate. He kindly agreed to meet a delegation, and I hope that he listened carefully to the fact that the cuts to the fire service grants of the metropolitan fire authorities are twice the level of those for other fire authorities in the country. Fire chiefs are saying that if the cuts continue for a third and fourth year, they will not be able to deliver appropriate fire cover in their areas. In my constituency, three fire stations are being closed and will be replaced by just two. That may be a more efficient way of delivering fire cover, but it will result in slower response times to some of the large industrial plants in Sheffield that still operate in the steel industry and other related industries. People are worried that if that happens, it could create greater risks at a time when we hope to see great Sheffield firms such as Sheffield Forgemasters continue. We would not want them to be put at greater risk by reduced fire cover. We hope that Ministers will listen to those concerns. This settlement is unfair to many councils, and those in the greatest need are receiving the biggest cuts. In total, it demonstrates that the Government value the services provided by local councils less highly than other public expenditure, and I will certainly be in the Lobby with my right hon. and hon. Friends to vote against it this evening.