Earlier today, in a Westminster Hall debate on Local Government funding in Greater London, Andrew Rosindell M.P. demanded a total reform and rehaul of Greater London's local government funding arrangements.
The funding formula is outdated and is a relic from the 1960s. The outer-boroughs of Greater London are not receiving the services they pay for, nor the support from central government. Havering deserves a funding arrangement which can serve the changing nature of the borough.
The full speech was as follows:
It is a pleasure to serve under your chairmanship, Ms Lewell. I thank the hon. Member for Leyton and Wanstead (Mr Bailey) for rightly raising this issue for debate. I am grateful to him, as I am sure we all are.
I endorse the comments of pretty much all Members who have spoken, but especially my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez)—we share the borough of Havering. Members have highlighted what we all know: the local government funding system is fundamentally broken. No matter what borough we come from, the current system simply is not working. We are all suffering local services that are inadequate. Funding is not there for things that are essential, and we are seeing money spent on things in local government that I believe are wasted.
Particularly in Havering, as well as in Bromley and in Hillingdon, which is represented by my hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds), we also say that our boroughs are spending a lot of money to fund the Greater London Authority, and most of that seems to be spent in inner-London areas. Outer-London areas are funding inner London. We have been doing that for many decades, not just since the Greater London Authority and the mayor were created, but under both Governments.
I would like to depoliticise this issue a bit. We can blame each other—[Hon. Members: “Ah!”] We can blame each other, but the last Government did not deal with it, and I hope this Government will attempt to deal with it. Without fundamental change, the problem will go on and on. What we need is less, but more effective, government. We need spending on the right things. We need to give control back to our local areas and to have less control by central Government and the Greater London Authority.
I will not repeat all the arguments made by my hon. Friend the Member for Hornchurch and Upminster, because all the points she made were absolutely correct, but Havering has particularly suffered from underfunding and an unfair funding formula for many decades—in fact, all the way back to when the London boroughs were created in the 1960s. When the London boroughs were created, the outer-London areas, which were considered to be wealthier, were effectively putting money into the centre, and they did so for many decades. As hon. Members have said, that has changed. As the hon. Member for Leyton and Wanstead said, outer-London areas have altered and the demographics have changed. But the funding formula remains the same.
We need to completely change how we deal with this issue. Fiddling around with the figures at the edges will not solve it; we need root-and-branch reform of how local government operates in the Greater London area. We need more flexibility in areas such as Havering, which are not really in London—we orbit London, but we are far more linked to Essex areas than we are to inner London—and fundamental reform of the whole system.
Outer London has always been poorly funded and unfairly treated. In Havering, which has a large older population and a large younger population, and changing demographics, we particularly need more support. I hope the Minister will pledge that support, because all our constituents need change.
