Local Government Reorganisation
I need Members to ask much shorter questions, and I need the Minister’s answers to be on point as well.
Showing every spoken contribution, including 5,558 under 12 words. Hide short remarks
I need Members to ask much shorter questions, and I need the Minister’s answers to be on point as well.
Order. Mr Farage, no “you” and “your”, because it is not me who is responding.
Order. Before the Minister responds, let me say that I am not at the Dispatch Box. It is “the Minister”, not “you” and “your”. Back-Bench MPs should be speaking through the Chair.
I appreciate how local this is for everybody, but I ask Members to please ask only one question each, because we need to get through this statement quickly.
I call the shadow Chancellor.
Order. Interventions should be short and sharp, and questions should be to the point.
Order. Fascinated as we all are, there are many people hoping to contribute this afternoon, so I hope the shadow Chancellor will be concluding soon.
Order. I can tell that the Defence Secretary has had his Weetabix, because he is very loud at the Dispatch Box—but he has to be loud, because there is so much heckling. Can everybody just calm down a little bit?
Order. Mr Obese-Jecty, this is not good behaviour. After yesterday, Mr Cartlidge, I thought you would have had a much quieter voice. I cannot hear the Secretary of State. Can we just let him continue?
Order. Before the Secretary of State responds, may I point out that there are many people wishing to contribute? Hopefully his speech will be coming to a conclusion shortly.
I call the Liberal Democrat spokesperson.
I really welcome the Government’s U-turn on adopting Conservative policy and deciding to review airport drop-off charges, but in response to my written question, the Minister did not confirm that the Government’s anti-car surface access targets, the more than 100% increase in business rates that many airports have faced, or the crippling increases in employment taxes will form part of that review. Will the Minister ensure that all these important factors form part of the inquiry into what is leading to airport drop-off charges soaring under his Government?
I associate myself with the comments of the Secretary of State about the Spanish rail crash.<span id="430" class="column-number" data-column-number="430"></span> On 18 June, the Secretary of State said in a statement that the Heathrow expansion is “critical to national growth”. On 27 September the Prime Minister said, however: “Principally, it’s a matter for London and Londoners”. And last week, in response to a written parliamentary question, the Under-Secretary of State for Transport, the hon. Member for Selby (Keir Mather), said that the Government will consider the Transport Committee’s recommendations before deciding next steps. Does she agree with herself, the Prime Minister or her junior Minister?
I thank the Secretary of State for that clarification. Last week, Chancellor Merz set out his plans to scrap the ban on petrol and diesel cars across the EU, saying, “We stand by drivers. We stand with our industry. We stand with open innovation in technology…the internal combustion ban is off the table.” When will this Transport Secretary listen to British business, the unions and British drivers and scrap the zero emission vehicle mandate that is costing British jobs and costing British taxpayers?
Will the Defence Secretary give way?
<em>rose</em><em>—</em>
If it is true that the Defence Secretary has a plan for 2030, I ask him why the Labour Chair of the Defence Committee said yesterday in reaction to the Budget: “some of the key decisions on defence spending have lamentably been delayed until next year’s spending review. There is a cost to inaction. Investment in our nation’s defence and security cannot be kicked into the long grass. Our adversaries are not bound by fiscal years and spending cycles.”
He is the Chair of the Defence Committee!
My right hon. Friend has been a staunch defender of Ukraine for many years in this House. Would he agree with what President Zelensky said yesterday, as reported in <em>The Sun</em>, when he advised this Government to prioritise UK defence spending and to do so without further delay? Does Zelensky know something the Government do not?
Further to that point of order, Madam Deputy Speaker. If I caused any offence, I am sorry, but I was reacting to the fact that the hon. Gentleman effectively said that the people on the Conservative Benches could not read, which I humbly suggest is not very polite.
It is a pleasure to sum up for His Majesty’s Opposition this afternoon. Perhaps I can begin on a consensual note by pointing out that yet again, as we are debating these important economic matters, including the defence of the realm, there is no Member of Parliament from the Reform party present. They have taken no part in this debate at all. We know that they do not do Thursday afternoons, and they certainly do not do defence either.
No, I think it is because they are desperately trying to find someone—anyone—to go to one of their press conferences. Now, according to the Red Book, working-age welfare spending will increase to £221.5 billion in 2031-32. That is almost a quarter of a trillion pounds and an increase <span id="539" class="column-number" data-column-number="539"></span>of over £57 billion since 2024-25. The Prime Minister famously said at the Dispatch Box just a few weeks ago that “national security…cannot come at the expense of social security.”<span id="vol790_col1036" class="cross-reference" data-house-id="1" data-column-number="1036" data-volume-number="790" data-external-id="27366963-96CC-4751-A325-AA825B94E732">—[<em>Official Report</em>, 9 September 2026; Vol. 790, c. 1036.]</span> That really is a segue to what I principally want to say this afternoon. What the Chancellor announced yesterday was not a detailed programme for how to spend 3% of GDP on defence, but just a plan to have a plan—which is not really a plan at all. He promised to “begin work”—his words—on how this would be achieved by the time of the spending review next year. The Labour Government have already had two years to answer this question, so why do they need a further year now? When Labour published the strategic defence review in June 2025, all three authors of the review, led by Lord Robertson, a respected former Secretary-General of NATO, were absolutely adamant that the bill for implementing their recommendations was a minimum of 3% of GDP on defence. Unless and until the Government definitively commit to spending that money, it is very difficult for our armed forces realistically to deter a war with any aggressor, and in particular the Russians—not the Trussians! At the time of the SDR, we were told that that level of detail would be provided in the subsequent defence investment plan. The House was promised this in the autumn, then by Christmas, then by the new year, then in the spring, and it was finally published only in late June 2026. Nevertheless, when the DIP was eventually published, the Government kicked the can down the road for a second time and still failed to provide a definitive date for when, and crucially how, this country would spend 3% of GDP on defence. Indeed, the then Defence Secretary, now the Chancellor, famously resigned, seemingly on a point of honour, because the Government had failed to give a date for 3%. I have here his resignation letter, dated 11 June, and I quote from it directly: “After explaining to you that I would not be able to accept a DIP settlement that does not give our Forces the resources they need, I am now left with no other option than to submit my resignation as your Defence Secretary.” It is also worth recalling that the then Veterans Minister, the hon. and gallant Member for Birmingham Selly Oak (Al Carns), resigned in company with him, partly over this and also because of his very severe reservations about the Northern Ireland Troubles Bill—a wicked Bill—which he famously described as “unfit for purpose”. Once the previous Prime Minister then fell, miraculously, having resigned as Defence Secretary, the right hon. Member for Rawmarsh and Conisbrough (John Healey) was immediately reincarnated as the Chancellor of the Exchequer. However, he then found himself with the boot very much on the other foot. Given his understanding of defence, and the solemn terms in which he wrote his letter, it was not unreasonable to assume that, having now seized control of the bridge at the Treasury, he would be ideally placed to meet his own request to name the date for 3% and how to finance it. Otherwise, why did he resign? I am therefore genuinely deeply saddened to see that, yesterday, he failed his own test. All we were given was an offer to produce a plan for 3% in the Government spending review, which will take <span id="540" class="column-number" data-column-number="540"></span>place next year. In other words, a man who seemingly resigned on a point of honour, when he had the perfect chance to put that problem right, completely ducked it. All that Labour has done is kick the can down the road for a third time. Our armed forces therefore cannot realistically plan because they do not know how much money they will really have to spend on this nation’s defence, and they are now going to have to wait at least another year before they do. The House need not take it from me; Chris Mason, the political editor of the BBC, in summarising the Budget on the 6 o’clock news last night, said, “The biggest questions this Government still faces, such as the long-term funding of defence, this Budget didn’t answer.” In fact, it is even worse than that. When the Defence Secretary agreed the SDR, he also signed up with the Treasury for almost £11 billion of efficiency savings. This was a Labour deal—a Faustian pact—between two warring Government Departments, but the effect of those in-year efficiency savings, or “spending cuts” in pub English, is now proving debilitating for our armed forces. The in-year cuts were some £2.5 billion in the previous financial year and £3.5 billion this year, 2026-27. One of the reasons it took nearly a month to get HMS Dragon to sea was that maintenance cuts occurred under the efficiency savings programme. We now see the vast bulk of the Royal Navy tied up alongside the quayside, partly because of maintenance issues but also to save money. For many months, we had a period in which not a single one of our nuclear attack submarines was at sea. The Minister might intervene and chide me for discussing submarine movements on the Floor of the House, but I am not—I am discussing the absence of submarine movements on the Floor of the House. We have also seen Army exercises cancelled on Salisbury plain and flying hours reduced for some of our RAF pilots. These are exactly the wrong things to be doing if we are trying to send messages to Vladimir Putin, a former KGB colonel, to deter him from further adventurism—for instance, in the Baltic states. Yesterday, the Labour Chair of the Defence Committee—I am afraid I am going to quote him again—excellently summed it up by saying that “some of the key decisions on defence spending have lamentably been delayed until next year’s spending review. There is a cost to inaction. Investment in our nation’s defence and security cannot be kicked into the long grass. Our adversaries are not bound by fiscal years and spending cycles.” He should know. Yesterday we even learned from the depths of the Budget Red Book that the Chancellor has effectively cut the overall MOD budget by £1 billion in each of the next two years by pocketing reduced spending estimates on MOD pensions for the Treasury, rather than allowing the MOD to retain the cash and spend it on bolstering our defences. The Treasury has described these two £1 billion cuts in the defence budget as an “accounting adjustment”. Well, it is Enron accounting. It is smoke and mirrors, and it only helps our adversaries, not our armed forces. On defence housing, there is a similar story. I served for some five months on the Armed Forces Bill Committee, and we were told repeatedly that the money for housing would not be raided for short-term efficiency savings. <span id="541" class="column-number" data-column-number="541"></span>In fact, the hon. and gallant Member for Birmingham Selly Oak told us in the Select Committee on the Armed Forces Bill on 18 March: “The £9 billion has been ringfenced; it has absolutely been secured for defence housing. Nothing in the DIP process will stop us getting on with the job of making these improvements and getting the job done. We have made that commitment to not just the armed forces community but the nation. We have said it in the House, and we will see it through.” That is completely unambiguous, so imagine our anger when we then saw a letter from the permanent secretary to the Chair of the Public Accounts Committee, dated 25 September, which said not only that some £850 million of that money will be deferred to the next Parliament, but that an additional £1 billion of upgrades to single living accommodation for soldiers will be deferred as well. What the Government have done is cut nearly £2 billion of that investment in this Parliament, in a desperate attempt to meet exactly the Treasury-imposed efficiency savings target that, for five months, they swore blind to us they would not do. The Defence Secretary, who opened this debate, neglected to mention the MOD’s £3.5 billion efficiency savings target for this year. He talks about being ready for war within 1,000 days, while at the same time imposing crippling cuts on the operations and training of our armed forces, who are there to deter war in the first place—si vis pacem, para bellum. The Budget totally failed to answer the question of how the Government will actually spend 3% of GDP on defence, and they are listening in Moscow, Beijing, Tehran and Pyongyang. This is a dereliction of duty by a Government who will the ends but do not will the means, who talk tough but act weak, who have let down the people of this country and will not defend them properly, and who must be held to account at the ballot box for their abject failure in defence of the realm.
I am sure the right hon. and learned Lady can confirm to the House that she is a Treasury Minister. I have here the press release issued by—the Treasury—which says, “Exclusive. Chancellor John Healey tells Krishnan Guru-Murthy Labour will not bring welfare bill—”
I apologise, Madam Deputy Speaker. I was reading the press release, but I accept your admonition. Anyway, it says that the bloke who is in charge of the Treasury has told Krishnan Guru-Murthy that Labour will not bring the welfare bill down in this Parliament and the Economic Secretary to the Treasury—to give the right hon. and learned Lady her correct title—has just said that it will. Who is right? Is it the right hon. and learned Lady, or is it her boss? They cannot both be, can they?
Like others in this House, I think it is fair to say that this whole process has been a shambles. Like many in the House, I come from a local government background, and I feel sorry for my councillors, my council and my residents for what they are having to go through. Having said that, the previous decision for Hertfordshire was wrong, so I appreciate that the Minister has taken the opportunity to reassess what Hertfordshire will do. Given that my community is a collection of small towns and villages, and we do not have a mayoralty, how will he ensure that my community is properly represented, whatever the outcome for Hertfordshire?
Earlier this week, the all-party parliamentary group on rail had presentations from representatives about access to both airports and seaports. They made the suggestion that modest electrification projects linking seaports such as Immingham to the main line would greatly improve rail freight distribution. Do the Government have plans for such schemes?
St Andrew’s hospice in Grimsby and Lindsey Lodge hospice in Scunthorpe provide an excellent service to my constituents, as does the hospice movement across the country. Hospice UK held a drop-in session earlier this week. It outlined research that found that modest additional funding to the movement could save the NHS considerable amounts in emergency treatments. Can the Leader of the House find time for a debate, so that we can explore how the hospice movement can actually save money for the NHS, as well as provide excellent care for our constituents?
North Lincolnshire and North East Lincolnshire, the two unitaries serving my constituency, are unanimous in wanting to maintain the status quo, as are the four MPs across the area. The Minister’s predecessor announced that that would be the case. Could he enlighten us as to why he is further delaying and continuing the uncertainty?
Like my hon. Friend the Member for North Cotswolds (Sir Geoffrey Clifton-Brown), I agree that merging six district councils and one county council into one unitary authority for 650,000 people is a good idea—it has a lot of efficiency. In Worcestershire, we have 630,000 people, six district councils and one county council. How on earth did the Minister come to the conclusion that it was a good idea to split the county council in two and have a north-south divide in a county smaller than Gloucestershire?
It is a pleasure to serve under your chairmanship, Sir Roger. I will speak in support of new clause 34, which is about prioritising brownfield for development. We always hear from the Government that they want to protect the green belt. I often laugh when they say that, because there is nothing in legislation: they never want to put anything on the face of the Bill or issue anything to protect the green belt. Labour’s favourite think-tank, the Institute for Public Policy Research, has found that 1.4 million brownfield sites have been left unbuilt since 2007. As I said on Second Reading, that number is rather close to the Government’s commitment to build 1.5 million homes, which they have all but admitted they will not meet.
I am slightly bewildered. I have great respect for the hon. Gentleman, who invited me in a debate in the Chamber to visit a pub in his constituency. I did not take him up on the offer, but maybe I should have, because I could have corrected him on a lot of the things he has just said. I am slightly bewildered by the nonsense that has just been spoken. I was a council leader. The planning system is not why these houses do not get built. When I speak to developers in my constituency, lots of them say that it is now difficult to employ people because of the day-one employment rights that this Government have brought in. Lots of businesses speak to me about the increase in national insurance contributions. The Opposition have a plan to take £50,000 off the cost of building a new home, which will include social homes and increase the supply. This Government have done nothing to increase supply; all they have done is attack local councils for giving out planning permission. Local councils get punished when they do not have a five-year land supply, which is something that they have very little control over. The Government need to do much more to develop brownfield sites.
I thank the hon. Member for his kind words; I have great respect for him too. He makes an interesting point, but it is a wider issue than that. It is about appropriate development in the right place, followed up by infrastructure. I agree that brownfield sites are usually in the centre of towns. As I said on Second Reading, we are all fed up with driving past sites with all the hoarding up. The sites have planning permission: either they have gone through the planning committee, and the local council has said, “Yes, we will give permission based on these circumstances,” or unfortunately it has not, but permission has been won on appeal. It creates a certain feel in a town centre when someone goes down and sees all the hoarding up on the brownfield sites. In the heart of my constituency, in Cheshunt, we have a care home waiting to be built. It is a long-overdue facility in the local community that we really want to see built, but it has been left empty for years and years, and we just see the hoarding up. It creates a real sense of loss of pride in a place when someone goes down to the town centre and sees site after site like that. We have sites in Hoddesdon that got planning permission in 2014 and have only just started moving through this process.<span id="109" class="column-number" data-column-number="109"></span> Lots of things affect house build-out rates, but this Government could do much more to give powers to local councils to get these brownfield sites off the ground, because there are thousands of sites across the country that have planning permission but remain unbuilt.
I know that the Minister has a lot of expertise in this area. One example is that when standard planning permission is issued, a developer might get three years to build. As we have seen in my local area, that does not necessarily mean that something gets built; it just means that they have started on site. That could be digging a hole or building the first wall; nothing is actually produced at the end of it. I would like councils to have a “use it or lose it” power, which would mean that someone cannot necessarily finish building just because they have started digging on site.
I think we have to explore all options. I want to protect as much of the green belt as possible. We all have brownfield sites in our constituency that we want used to meet the social housing targets and bring down waiting lists. Unfortunately, the Bill talks about stopping the right to buy. I just want to put it on the record that if we do that, the people who bought those houses will still be in them. Those people, and the waiting lists, will not magically disappear if we get rid of the right to buy.
As I say, we need to explore all options, and I want brownfield sites to be built out first. I want to protect as much of the green belt as possible. That means looking at how to use areas that have planning permission and have already gone through the planning process—areas in our town centres that residents drive past all the time. The Government need to look at those sites, because there are loads of unbuilt planning applications; we have all had consultations and spoken to our residents about them. All options must be on the table. We see this in our constituencies all the time. People come to see me at my local surgery to ask why a site has not been built out. We desperately want a care home built on a brownfield site in the middle of Cheshunt <span id="110" class="column-number" data-column-number="110"></span>town centre. It would be good if the Government gave local councils tools to enable those sites to get built out quicker.
Absolutely. New clause 34 says that the Government must bring forward a strategy for brownfield sites, which could include a multitude of options. When they do so, the Opposition will look at the benefits of all the items in the strategy, which could include a “use it or lose it” power. That is one example that the Government could review to see what could happen. The new clause is about using brownfield sites first. I do not think that anyone disagrees with that, so it would be good if the Government accepted it. If they do, the Bill might actually be about building more social housing. At the moment, it does nothing of the sort.
I thank the Minister for giving way; he is always very generous with his time. Does he believe that the Regulator of Social Housing has enough powers to deal with the issues that he describes? That is just me, in a good spirit, asking a genuine question about how he thinks it is operating.
It gives me no pleasure whatsoever to say that from start to finish, this Government’s approach to local government reorganisation has been nothing short of a farce. The Government first promised to publish their English devolution White Paper in November 2024. It was delayed until December 2024, with affected councils given three weeks over Christmas to decide whether or not to delay local elections. Last year, after the right hon. Member for Ashton-under-Lyne (Angela Rayner) was forced to resign from the Cabinet, her successor—and, as it turns out, her predecessor—assured us that reorganisation was not taking, and would not take, any longer than planned, and that elections scheduled for May 2026 would go ahead. The Government confirmed that twice in November 2025, yet the very next month announced that elections in some parts of the country would be pushed back as far as 2028. Two weeks later, again in the run-up to Christmas, the then local government Minister invited another wave of postponements. In January this year, despite having promised not to delay elections in November, the then Secretary of State announced legislation to postpone 29 elections. The next month, days before the Department was due to answer for its behaviour in court, those postponements were withdrawn. Naturally, the taxpayer was left to pick up the tab for all those delays—a bill that runs into the tens of millions of pounds. That U-turn was announced during recess, so that Members of Parliament had to wait to question Ministers. In March, there was another set of announcements and another set of legal challenges. In June, it was revealed in a pre-action letter issued by the Department that Ministers had ignored official advice over reorganisation plans. In July, just days before the right hon. Member for Makerfield (Andy Burnham) became Prime Minister, the previous Secretary of State announced a whole new set of reorganisation plans, with many Members given essentially no time to scrutinise the <span id="465" class="column-number" data-column-number="465"></span>sweeping changes that were set to be imposed on their areas. We still have not seen the advice that informed those decisions, so will the Minister confirm today, in the interests of transparency, that that advice will be published? In September, following updated and privileged legal advice, the current Secretary of State withdrew decisions for Essex, Hampshire, Norfolk and Suffolk, and paused plans in most of the rest of the country. What a complete joke! Today the Minister talks of giving councils clarity, yet goes on immediately to say that all options and proposals remain under consideration, and that he approaches all decisions with an open mind. He cannot be serious. We are two and a half years into this process, and the Government had years in opposition to plan it. Why have these decisions not yet been made? How can we still be at the stage of keeping an open mind, and what clarity exactly have we gained from the statement? The vast majority of councils are none the wiser after what we have heard today. The Minister talks of allowing the process to “run its course” and of giving “full and proper consideration” to each decision, but can he set out what will be taken into consideration? What role have party political objectives played in determining new local government boundaries? Have the Government received, at any point during the process, legal advice that indicates that political considerations were given undue weight in deciding new council boundaries? When can councils that have been left in the dark by today’s announcement expect some kind of verdict from the Government? Which areas will hear by Christmas, and what does “early next year” actually mean? Given the Government’s record on meeting their own deadlines, I am sure that the Minister will forgive me for my scepticism. The real-world results of this endless delay are plain to see. People across the country are left without any sense of which council will be providing services in the year and years to come, while councillors and council officials have spent millions of pounds of taxpayers’ money planning and preparing for new authorities that might never materialise. Notwithstanding the announcement that the Minister has made on funding, will he provide an estimate today of the total cost of this Government’s shambolic local government reorganisation? How much of that cost is being eaten by legal fees? The money spent on this farcical reorganisation process should have been spent instead on resurfacing roads, collecting bins and maintaining parks—core local government functions that people care about. For all the Prime Minister’s talk about local government, this whole approach to devolution has shown nothing but contempt for local democracy. Local voices have been ignored in the drawing of new council boundaries, and have been overridden by party political considerations. Again and again, the Labour Government’s approach to local government has been about imposing more government, pushing up tax, and stacking the deck in a cynical effort to gain political advantage. They should be ashamed.
I agree that the Government quite like cost-benefit analysis. Perhaps they could do a cost-benefit analysis of the hon. Member’s proposal for a cost-benefit analysis before deciding whether to support it. That is just a suggestion.
Greedy corporate interests have stripped out more than £200 million from our Isle of Wight ferry services in the past 10 years. I am grateful to the Minister for setting up local roundtable meetings, but they are at risk of becoming a talking shop, and the ferry companies do not appear to be taking them seriously. Can he give us an assurance locally that if the ferry companies do not take this opportunity to improve services and reduce prices, the Government will consider taking steps to force their hand?