Local Government Finance
Does the hon. Member believe that people who promise not to raise council tax should not raise council tax?
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Local Government Finance
Will the hon. Gentleman give way?
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Supported Exempt Accommodation: Birmingham
It is a pleasure to serve under your chairship, Ms Lewell. I congratulate the hon. Member for Birmingham Perry Barr (Ayoub Khan) on securing this important debate. Supported exempt accommodation plays a critical role across the country, but as we have heard, there are clear issues that need to be resolved. It provides housing to support those living independently, and crucially, it supports some of the most vulnerable people in our society, including care leavers, people with disabilities, those who have experienced homelessness or rough sleeping, those recovering from a drug or an alcohol addiction, individuals recently released from prison, and victims of domestic abuse and modern slavery. The nature of supported accommodation and the support that it provides mean that it is exempt from the usual caps on housing benefit. That exemption exists for a good reason. However, the sector is fragmented, regulated by multiple bodies and lacks a single, coherent regulatory framework. For some time now, there have been serious concerns about inconsistency, poor standards, poor-quality provision in some areas and the long-term financial sustainability of the sector. More recently, the Government’s supported housing review, published in November 2024, showed that in 2023, there were 634,000 units of supported housing in Great Britain. More than a third of those—more than 215,000 units—were claimed through the housing benefit system. Critically, the review also highlighted a substantial shortfall. It estimated that nearly 400,000 additional supported housing units are needed right now to meet the unmet demand. Looking ahead, that figure rises dramatically, with up to 640,000 additional units required by 2040, particularly for older people. Against that backdrop, it is deeply concerning that the sector itself has warned that it is in crisis. In April 2025, more than 170 organisations wrote to the Prime Minister to call for at least £1.6 billion a year in long-term funding for local authorities. Further warnings followed in July 2025, highlighting the risks of strengthening regulation without providing the funding to make it work. In August 2025, the Local Government Association echoed those concerns, calling for increased funding and new guidance to help councils prepare for the implementation of the new regulatory requirements. All that sits in a wider housing context that should worry us all. The Government have set a target of delivering 1.5 million homes by the end of this Parliament, yet their own figures show that housing supply in England fell to 208,600 net additional dwellings in the year 2024-25 —a 6% decrease on the previous year and the biggest fall in 12 years, outside the pandemic. Just over 190,600 new homes were built, which is fewer than in the final year of the previous Government and 16% below the peak of 2019-20. Against that backdrop, let me turn to the Supported Housing (Regulatory Oversight) Act 2023. I welcome the fact that the Conservative Government supported the passage of the Act, which is the first to directly regulate the standard of support provided in supported accommodation in England. It received Royal Assent in June 2023, and has the potential to drive up standards, improve accountability and protect residents from poor-quality provision. However, legislation alone is not enough. The Government consulted on the implementation of the Act in the summer of 2025, and in January 2026 they said they would respond “as soon as possible”. Given the pressures facing the sector, a response cannot come soon enough. Will the Minister confirm when the Government will publish their response to the consultation and when the Act will be fully implemented? Finally, let me put on the record the action taken by the previous Government in this area. Alongside the passage of the Act, they published a national statement of expectations for supported housing, setting out what good looks like and how local authorities should plan to meet the demand. They invested £5.4 million in enforcement pilots, including in Birmingham, and an independent evaluation showed that the pilots improved the quality of accommodation and support while preventing an estimated £6.2 million in illegitimate or unreasonable housing benefit payments. Further support was provided through updated guidance, good practice resources and £20 million from the supported housing improvement programme to help councils to drive up quality and value for money. The challenge is clear. Regulation must be implemented properly, swiftly and with adequate funding. Supported housing is not a niche issue; it is a lifeline for hundreds of thousands of people and a cornerstone of our wider housing system. If we fail to get this right, the most vulnerable people will pay the price. That is why I urge the Government to act with urgency, with clarity and with the resources needed, so that the sector can thrive.
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Defence Industrial Strategy 2025
Whatever the defence industrial strategy aims to do, its aims will not be met if we cannot find and recruit people willing to use the equipment and technology that are created. People will be far less likely to risk their lives to keep our country safe and free if they cannot rely on the Government to stand by them both during and after their service. What assessment has the Minister made of the impact on the military and the defence industry of the Government’s decision to allow our veterans who served in Northern Ireland to be dragged vindictively through the courts?
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Economic Impact of Government Policies
2. What assessment he has made of the potential impact of Government policies on the economy in Northern Ireland.
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Economic Impact of Government Policies
The Government are giving a 50% reduction to the emissions trading scheme levy on ferries crossing between Northern Ireland and Great Britain in an apparent effort not to negatively impact the economy there. Scottish islands are getting a 100% reduction, yet the Isle of Wight is getting no reduction. What economic assessment has been done to arrive at those figures, or are they simply plucked out of thin air?
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Hughes Report: Second Anniversary
I thank the hon. Member for Chesham and Amersham (Sarah Green) for introducing the debate. Like other Members, I was here last year on the first anniversary of the Hughes report. It is a stark reminder of how issues can drift. For those who have suffered, the passing year has not just slipped by quietly, yet we still hear the same language from Ministers about a response coming “in due course”. Those words ring very hollow to the victims whose patience has long since run out. Ministers have previously said that this is a complex issue requiring action across multiple Departments. I readily accept that, but that is precisely why Professor Hughes recommended the interim scheme and those payments in 2025—and 2025 came and went with no response and no payments. Professor Hughes wrote that report, as she said, to drive action; she would not have done it otherwise. It is about how the compensation is paid, not whether it is paid, and it is extraordinary, frankly, that she felt she had to use statutory powers to go to No. 10 and the Prime Minister to drive progress on the issue. In the debate last year, I spoke about my constituents Colleen and Andy, and other families who have been blighted by the scandal. When I met them they talked about their son, Byron. Colleen has epilepsy and was prescribed sodium valproate, but she was never warned that it could harm her unborn child. Byron lives with autism, learning disabilities, communication difficulties and epilepsy. The family’s experience is far too common. Families like them deserve decisive action from the Government. When I pressed the Health Secretary at health questions last month, he said that we were “right to hold the Government’s feet to the fire”,—[Official Report, 13 January 2026; Vol. 778, c. 753.] He said that work was happening across Government and promised updates. But there have not been any updates. The Health Secretary has previously spoken about the failure of the state to recognise and put right wrongs and its mistakes, yet two years on we are still waiting for some action. Victims do not need any more words; they need action. As Professor Hughes has said, the lack of a response feels devastating to those families. For the sake of the families who have suffered, the Government need to act now. There has been plenty of time to learn from other compensation schemes, to secure funding from the Treasury for compensation and to set out even just a timeline for redress. I ask the Minister: when will interim payments finally be made to those affected and give families the relief they urgently need? At the very least, can the Minister commit that the Government will make interim payments this year? Otherwise, it would be an utter disgrace.
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Engagements
My constituent’s mum, sister and stepfather were killed in a horrific dangerous driving crime for which a foreign national offender was sentenced to 10 and a half years. However, the family have just been told that he may be released imminently in order to be deported, having served just three years. Will the Prime Minister look at the case and at what steps can be taken to prevent that release? Such a pitiful time served—three years for three lives—would be the final insult and undermine public confidence in our justice system.
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Local Government Finance
This settlement is supposed to deliver fair funding; that is what the formula says on the tin, but it fails the Ronseal test. Norfolk’s core spending power in the first year of the settlement is lower than the national average, and the largest increases in core spending power are going to urban authorities. This simply fails to recognise the needs of large rural counties such as Norfolk. The County Councils Network’s assessment is that rural counties and unitaries face the highest pressures, collectively amounting to £7 billion of costs by 2028-29.
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Local Government Finance
Indeed. I am sure that if the hon. Lady catches your eye, Madam Deputy Speaker, she will elaborate on that. Here is my point. Perhaps the kernel of the unfairness is the lack of recognition of remoteness and its impact beyond the adjustment for adult social care. It has been removed from most of the formulae—
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Local Government Finance
I will not give way; lots of people want to speak. This is a serious cost pressure on rural authorities that the Government have chosen to ignore. Of course, this has been compounded by the removal of the rural services delivery grant in 2025—the loss of funding that had been put in place specifically to acknowledge the high cost of rural service delivery. That was a political choice made by a very political Secretary of State. People in Norfolk can see in plain sight how this Government view rural areas, in the light of the farm tax, the lowering of the bus funding that the previous Government had put in place, and the scrapping of road and rail schemes in our area. I ask the Minister, who is not currently in her place—I hope the Whip on the Front Bench will make a note of my question—why Ministers rejected the evidence that Norfolk and other rural authorities submitted about the additional costs that they face and the importance of remoteness. After remoteness, there is the recovery grant, which is supposed to be a one-off formula intended to give local authorities the funding they need. The formula was meant to be replaced, but the Government have decided to continue it for the next three years. However, there is no funding for Norfolk county council, despite the allocation, and the additional element of the final settlement, supposedly being targeted at upper-tier authorities—only Labour upper-tier authorities, it seems. It is little wonder that the Institute for Fiscal Studies said: “Maintaining…allocations of the recovery grant does not look like a principled decision”. I think that says it all. The policy is designed to shove all funding to Labour councils. Let us be clear: this is about shifting resources away from rural areas and into unitaries.
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Local Government Finance
I agree. The figures simply bear that out. As a result of the settlement, council taxpayers in Norfolk—it is probably the same for my hon. Friend’s constituents—will bear the brunt through much higher council tax. Maximum council tax increases are assumed for the full three years of the settlement. Let me touch on internal drainage boards, which are responsible for managing water levels and reducing flood risk. They play a vital national role in protecting key areas, including the prime agricultural land that is so important for our food security; yet the cost of IDBs falls on council taxpayers. In the borough council of King’s Lynn and West Norfolk, 40% of council tax goes towards IDB levies—costs that other local authorities do not face. Funding should reflect the nationally important role of IDBs. Additional support was introduced by the previous Conservative Government. It has been continued by this Government, but they are not uprating it with inflation to take account of the high energy costs that IDBs pay. We do not know if that support will continue in future years. If it does not, will the Minister commit to working with the local and district authority groups that have been set up precisely to find an equitable solution? Of course, Norfolk is losing out further still because of the Labour Government’s decision to cancel the Norfolk and Suffolk mayoral election and the county council election—two political choices with which I fundamentally disagree. Not only have our elections been scrapped, but my constituents—and those in Suffolk—were due to benefit from an annual investment fund of £37.4 million a year, which the Government have now cut for Norfolk. We will lose out on £48 million in the next two years. Why? Because of decisions taken by these Ministers. It is another sign that this Government neglect the people of Norfolk. I welcome the announcements on SEND deficits, but it is clear overall that this is not a fair funding settlement. There is an over-reliance on council tax increases for my constituents, there is no recognition of the true costs that rural authorities pay, and ministerial decisions will lock in inequalities for years to come. The Government should think again.
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Local Government Finance
Will the Minister give way?
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Police Grant Report
I am reassured to hear the Minister’s words, but I am not hearing how what she describes will happen. We have all seen what happens with a larger force. The big cities and metropolitan areas have a political way of pulling resources to them; it is almost like gravity. Something structural is required. The Minister may not have an answer today, but will she consider ways of backing up her hope, to turn it into something on which rural communities in my constituency can rely?
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Police Grant Report
Will the Minister give way again?
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Police Grant Report
The Minister is being extremely generous in giving way. I met the chief constable of Humberside last week. As the Minister will know, it is the leading force in the country and has the best results, so local people are concerned about a reorganisation that could be expensive, and could draw resources away from a successful police system. How will those making preparations for these changes engage the chief constable in Humberside and others who are helping to set very high standards now? We do not want those standards diminished in the future.
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Police Grant Report
Will my right hon. Friend give way?
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Police Grant Report
I am extremely grateful. My right hon. Friend is being most generous, and he has barely begun his speech. I must have misheard, because I have listened to so many speeches about law and order from Labour Members, and my right hon. Friend must have misspoken. He has suggested that not only did the last Conservative Government leave a record number of police officers, but overall crime fell by 50%. Have those words ever been issued by the Ministers, or do they try to mislead the public at every opportunity?
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Police Grant Report
I mentioned no individual, Madam Deputy Speaker, but “inadvertently”, of course, in any Minister’s case.
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Police Grant Report
My right hon. Friend will have noted, as I did, that the Minister failed to answer on the “how”. She said that she wishes to ensure that the creation of massive new police organisations does not lead to policing becoming more distant, remote and hard to influence, not least for rural communities, but she could not tell us how it will be done. Does he share my concern that we will end up with a larger, more bureaucratic system that is remote from ordinary people? People in rural East Yorkshire are going to feel far away from decision making.
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Police Grant Report
I have never heard someone so passionately misinformed in my life. The Labour Government left a massive, gaping overspend. In other speeches the hon. Gentleman has mentioned the national debt going up under the Conservatives, but we brought it down every year, and we fought and reduced crime as well. Having ensured that the country recovered, we left record levels of police officers and a 50% cut in crime. He puts on this faux outrage, but the lived reality for his communities and mine was an improved service and balanced books.
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Police Grant Report
So did I.
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Police Grant Report
The hon. Gentleman was practically spitting with anger when he talked about the Conservatives’ record of increased numbers of police officers and a halving of crime, but now he “respectfully” makes suggestions to the Minister. Is it his understanding that, as a direct result of the settlement that this Minister has brought to the House, there will be a cut in service level in his deprived communities, making them less safe? Is that his understanding, and if so, perhaps his passion could rise up a little?
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Police Grant Report
The hon. Gentleman may have inadvertently suggested that there was a reduction in police numbers. There was a record number of police officers, the highest in this country’s history, when the Conservatives left power. That number has been reduced—frontline, back office and PCSOs; each and every one of them—by the Policing Minister and the Government opposite. I know that the hon. Gentleman, who is always an honest and straightforward Member of this House, would not want to suggest that the Conservatives left us with reduced numbers, when, in fact, they had increased.
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Police Grant Report
When I met the chief constable of Humberside last week, he talked about Bobbi, an AI tool that is now able to meet 75%, and up to 90%, of queries. Does the hon. Gentleman envisage the desks always being manned, or would a computer or AI-based system be suitable in his view?
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Police Grant Report
rose—
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Police Grant Report
I am grateful to the hon. Lady for giving way. She is making a powerful speech. As she says, there will be a regressive impact from this police grant settlement, which is going to see higher and higher council tax on low-earning residents in her area, and because of rising costs, reduced policing. That is obviously concerning. I wonder how she is going to take that up with Ministers to try to effect change.
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Police Grant Report
It’s smoke and mirrors.
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Police Grant Report
It is just that sort of incoherence that is upsetting my constituents. Humberside police force—the finest in the country—has a mayor on the north bank and another mayor on the south bank, so who exactly will be in charge of the police force? We do not know what will replace it. We do not have the detail, and we do not know what it will cost. All we do know from governance reorganisations through the years is that whoever is in charge, they are normally slower, more costly and do not deliver as much as the Government hoped for at the beginning.
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Police Grant Report
One of the dangers, while the Government are cutting the police—1,300 last year alone, estimated by my police and crime commissioner, and another 4,000 nationally could go next year—is that they come up with this smoke-and-mirrors talk about neighbourhood policing and ask the hon. Gentleman whether he wants to protect that. If an artificial number, set from the centre, leads to the removal of police officers from where they are needed to meet local need, that is not a good thing. I hope that he, as a proper Liberal Democrat, will recognise that local decision making needs to guide this most, and that we need to have a Government who are not playing with smoke and mirrors.
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Police Grant Report
In his powerful speech, the hon. Member for North Norfolk (Steff Aquarone) talked about the rise in scammers and fraudsters. I am concerned about the fact that Humberside will get a 2.4% funding increase, according to a public announcement by Ministers. The police and crime commissioner has shown that, when costs are taken into account, that represents a 2.9% cut. That is why 1,300 police officers have been cut so far, and it is why another reduction of 4,000 is expected next year. The Minister can go through a carefully curated number of neighbourhood officers, but the overall number is down, and the Government are not being straight with us.
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Police Grant Report
On that point, will the Minister give way?
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Police Grant Report
As ever, I am afraid that this Minister gets her facts wrong. Despite that frailty, she is none the less straightforward and pretty outspoken. We get so few direct answers these days, so I look to her to provide them to two questions: are there fewer police officers now than there were when Labour came to power? And were there record numbers at that time? Are those two facts correct or are the Conservatives misleading the House, which we would not want to do?
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Local Government Finance
Will the Secretary of State give way?
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Local Government Finance
rose—
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Local Government Finance
The Secretary of State has been tremendously generous in giving way. He has also been making his usual barnstorming political knockabout speech, but perhaps he should start to act more like a Secretary of State, because low-income residents of the East Riding, of whom there are many in Beverley and Holderness, are going to have a £200 council tax bombshell. The smallest house is going to be paying £200 more in three years’ time and will have reduced overall funding to support public services after the increase in costs imposed by the Government. That is the reality. The Secretary of State said he wants to focus on need; why has rurality been removed from the category of need, when it is such a real issue?
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Local Government Finance
It is far from my typical habit to get involved in political knockabout, but following that astonishing intervention that showed a total lack of self-awareness, does my hon. Friend remember the now Prime Minister saying that council tax would go up by “not a penny”? This settlement assumes an increase of 5% a year on low-income people in rural East Yorkshire at the same time that core funding is cut. That is a £200 hit for the smallest house in our area, while—as my right hon. Friend the Member for New Forest West (Sir Desmond Swayne) said—very valuable homes in central London seem to pay a fraction of the amount.
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Local Government Finance
A £200,000 house in the East Riding of Yorkshire will be paying between £3,000 and £4,000 in council tax, depending on its 1991 valuation. A £2 million flat in Westminster will be paying £2,000. There is an opportunity to put that right. I know that the hon. Lady is from London and the Secretary of State is from London—it feels to a lot of us out in the provinces that everybody in charge is from London—but this system is so egregious and wrong. Does the Chairman of the Committee not agree that something needs to be done about this? We did not do it in our years in office, but this Government said they would have a fairer system, but it is not fair yet.
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Local Government Finance
It is a pleasure to take part in this debate, which has had a number of distinguished contributions, not least from the hon. Member for Knowsley (Anneliese Midgley). As she rightly said, at a time when the cost of living is biting so much on so many, people really need to feel better off. The hon. Lady also highlighted the regressive nature of council tax, which is why it is so regrettable that this settlement is built on the basis of putting up council tax on everyone. It is exactly what the previous Labour Government did, too; they doubled the level of council tax over their 13 years in office. In contrast, over the 14 years of the Conservative Government, council tax grew only a little more than inflation, as it was held down for many years, although it did go up and down over time. That is the history: Labour puts up council tax. Its spokespeople speak about how terrible and regressive it is, and then in government it visits that on people in constituencies across the country. The Government have used the expected 4.99% annual rise in council tax in all their figures to claim that there will be increased spending power. That is based on sticking up tax by 5%, and then another 5%, and then another 5%—it is compounding.
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Local Government Finance
I will come to the hon. Gentleman in a while. The impact for those in the cheapest or lowest-value homes in the East Riding—very often people in rural areas, with poorly insulated homes, costly transport and low income—will, by year three, be £200 a year out of already taxed income. That is the reality of what this Labour Government are visiting on poor people in my constituency and other constituencies around the country, while they crow about it being fair. There is nothing fair about it. The local government finance settlement will mean only one thing for families in Beverley and Holderness: higher council tax bills, at a time when every other bill is soaring—thanks, again, to this Government. The Secretary of State for Energy Security and Net Zero is signing up for the most expensive deals imaginable and putting up the price of energy, while the jobs tax—one of the most economically irrational taxes imaginable—taxes jobs and brings in no money, because employers simply employ fewer people. That is what that £26 billion hit on the economy comes down to.