Labour leadership contenders and local government policy

Labour’s leadership candidates have revealed their proposed policy approaches to local government – many of which have a direct or indirect impact on resources. Room151 takes a look at promises of  the hopefuls as they relate to funding for councils.

Local government financing is far from a fringe issue to the Labour Party. Research last year by the party’s former local government spokesman Hilary Benn showed that councils in the ten most deprived local authorities lost £782 per household under the coalition government, compared to just £48 in the richest areas.

With Labour traditionally performing better in the poorest areas, the issue is not merely one of social justice for the hopefuls but of political solidarity with the party’s grassroots.

Ballot papers are being sent to party members along with affiliated and registered supporters at the end of this week.

And with a month to go until the result is announced, each of the candidates has responded to a call by Labour Local Government leader Jim McMahon to set out their priorities for local government. Here is a summary of their responses which would affect council finances.

Jeremy Corbyn
As the only former councillor in the leadership line-up (serving  in the London Borough of Haringey between 1974 and 1983), it is perhaps unsurprising that Corbyn’s response is the most detailed. As the most left-wing of the quartet, he also firmly rejects the austerity approach, promising a “new settlement for local government”.

Key policies
– Powers to promote and fund major infrastructure projects, particularly public transport and renewable energy through new vehicles such as bond issuance or a new National Investment Bank. PFI wouldn’t play any role.
– Returning to councils the power to raise the “greatest possible proportion of its funding requirement” locally, while retaining a “fair system of equalisation” between richer and poorer areas.
– Consulting with Labour councillors to develop proposals on how land value taxation could replace council tax and business rates.
– Adopting a “whole place” approach to budgets and funding, involving service users and staff in planning provision.
– Reducing the power of the Treasury to reject innovative plans to allow local government to innovate.
– Insourcing repairs and maintenance services to reborn direct labour organisations.
– Reversing cuts to the adult skills budget.

Andy Burnham
Burnham has held the highest political office of any of the candidates, serving as both culture and health secretary under Gordon Brown, with previous experience as chief secretary to the Treasury. He was quoted in June as saying that Labour’s 2015 general election manifesto was the best he had ever run on.

Key policies
– Reversing “the massive cuts to Labour areas” after consultation on the method.
– Giving councils a control over the funding over health and care services with a single budget for both children and adults.
– New powers of compulsory purchase to buy run-down properties from private landlords so they can be added to council housing stock.
– The lifting of borrowing caps within council housing revenue accounts.
– Devolving transport funding and powers to groups of councils under a new national framework.

Yvette Cooper
Cooper served as a junior minister in the Department of Communities for Local Government as a housing and planning minister from 2003 to 2008, before becoming Gordon Brown’s chief treasury secretary.

Key policies
– Resetting the local government funding formula to ensure need is better reflected.
– Giving care workers a new higher minimum wage of £7.85 an hour, and £9.15 in London.
– Introducing a “step change in economic and public service devolution across the whole of the UK,” including on youth skills, energy and education.
– Reversing the decision by former communities secretary Eric Pickles to scrap councillors’ pension rights.

Liz Kendall
Kendall is seen as the candidate furthest to the right of the party, and has to fight off suggestions that she is wedded to the ideas of former prime minister Tony Blair.
– Devolving responsibilities from central government for the work programme, housing, health, education, skills, transport and economic growth.
– Making councils “equal partners” with ministers agreeing a new settlement for devolved powers and responsibilities every Treasury budget cycle.
– Joining up health and social care funding for commissioning under the control of local authorities.
– Bringing councillors back into the Local Government Pension Scheme

Photo (cropped): Gordon Wrigley, Flickr