Steve Reed MP: speeches

Speeches

• 11 Feb 2026 · Local Government Finance · Hansard source

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  Before I begin, I notify the House that the local government finance report has been updated with small corrections on pages 7 and 13. These corrections have been passed on to the House in the proper way ahead of today’s debate. Like you, Madam Deputy Speaker, I am grateful to the Joint Committee on Statutory Instruments for its careful consideration of these reports. I believe in local government, because I have lived it. As a councillor and as a council leader, I saw the difference that councils make to people’s lives. Local government is the part of our democracy that is closest to people and the things that they care about the most—their family, their community and their home town. Labour took office after 14 years of ideological cuts imposed on local government. The Tories devolved the blame for their failure in national government by imposing £16 billion of cuts on councils and local communities. Even worse, they targeted the worst of those cuts deliberately on our poorest communities. The former Prime Minister, the right hon. Member for Richmond and Northallerton (Rishi Sunak), was filmed standing in a leafy garden in Tunbridge Wells boasting about how the Conservatives had stripped away funding from struggling towns so that they could play politics with public money.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I thought the hon. Gentleman was going to stand up and apologise to the House for what his Government did in diverting money away from the poorest communities. I am very disappointed that he did not take that opportunity, and I suspect that I am not the only one—perhaps he will take the opportunity later on. I remind him and his colleagues that under the Tories, only three in 10 councils received funding that aligned with deprivation; with this Government, the number is more than nine in every 10. Local people were forced to pay a staggeringly high price for Tory venality. High streets were hollowed out and boarded up. The number of people sleeping rough on our streets doubled. The number of families stuck in temporary accommodation doubled. There were more potholes on our roads than craters on the moon.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  Let me return to my theme for a moment before I take any more interventions. The right hon. Member for Beverley and Holderness (Graham Stuart) and colleagues across the House will remember that the Tories used to belittle local councillors as part-time volunteers and took away their pension rights to deter people from risking a career on the frontline of local government. Today, it falls to this Government to fix the foundations that the Tories smashed apart. We are rebuilding local government so that councils can rebuild their communities. We are making good on our promise to introduce multi-year funding settlements so that councils can plan for the future with certainty. We are reconnecting funding with need so that we can take off the Tory shackles that have held back so many of our towns and communities for so long. We are ending wasteful bidding wars for funding, freeing councils to focus on filling in potholes, not forms. We are putting fairness back into a system that the Tories bragged about breaking. We reject the decline that ripped the heart out of towns and communities up and down this country. We choose change.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I certainly agree that the Lib Dems should share the blame for austerity. I was a council leader while the Lib Dems and Tories were in coalition together. I think they cut our council by a third just over the first one or two years that they were in power. Now they have the chutzpah to stand up and complain that this Government are putting some of it back. I really think they should reflect on that.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I agree with the Chair of the Housing, Communities and Local Government Committee that council tax cannot be the only means to fix these problems. That is why we have increased the level of funding overall and reconnected it with the deprivation indices that tell us which areas have the greatest need, and should therefore get a fair share of the available funding. The Home Secretary and I have also agreed an additional £3.50 council tax flexibility for six police and crime commissioners in 2026-27, where that was critical to financial sustainability in maintaining law and order. It is for councillors, mayors and police and crime commissioners to set their own council tax, and to take into account the impact on households when making those decisions. Nationally, council tax will not increase by more than it did last year. Six local authorities set council tax bills between £450 and £1,000 lower than the national average because of the high value of homes in their areas. The previous Government made no adjustment in the funding formula for this, creating unfairness. It is not fair that people living in our poorest communities should subsidise rock-bottom bills in some of our wealthiest areas, so I am giving those councils additional flexibility to manage their budgets as we align funding with need, as we should. For councils that need some support to balance their budgets this year, we will no longer just sign off borrowing or the sale of assets without a credible approach to reforming services to get back to financial stability. Later this month, I will confirm arrangements for supporting councils in the most difficult positions, but they will be expected to bring forward plans for more effective and sustainable services, built on sustainable budgeting into the future.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I beg to move, That the Local Government Finance Report (England) 2026-27 (HC 1604), which was laid before this House on 9 February, be approved.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I am going to make some progress, I am afraid. There are a few councils facing extremely challenging financial pressures that the previous Government turned into a crisis by ignoring their problems for over a decade. In response to requests from those councils, I am giving them flexibility to increase their council tax above referendum principles next year. Unlike the previous Government, we will not agree any increases that could lead to households in these areas paying above national average council tax, but we will not let councils go to the wall and see their residents punished with failing services. These flexibilities will apply to Warrington, Trafford, Worcestershire, Shropshire, North Somerset, Windsor and Maidenhead, and Bournemouth, Christchurch and Poole. One fire authority will also be granted additional flexibility. These are caps, not targets, and no area with additional flexibility will see bills rise above the national average.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I have taken an awful lot of interventions so far, and I do not want to leave no time, but I will take one last intervention.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  Well, the easy answer to that is that it has not been; it is still there. Above all, this settlement is about fairness, because this Government reject the Tory belief that our poorest communities should be left to sink with less funding and worse public services than other parts of the country. That approach pulled our country apart; and, in doing so, was profoundly unpatriotic. Our settlement reflects a council’s ability to raise income locally, and it reflects the fact that it costs more to deliver services in different parts of the country, retaining rurality funding for social care, because we recognise that workers in those areas have to travel longer distances. We have used the most up-to-date data on deprivation to make sure funding accurately follows need. We are introducing changes gradually over the period of the settlement so councils have time to adapt, and we are protecting councils’ income, including from business rates growth. Today’s settlement is a milestone in returning councils to a sustainable financial footing, and in restoring fairness to local government funding.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I thank my hon. Friend for recognising that funding is now following deprivation. He will find the answer to his question in the homelessness strategy, which I will come to. [ Interruption. ] Madam Deputy Speaker, you are indicating with your wrist that I need to speed up, so I will make some progress. On children’s social care, the system was again left on its knees. That is why this Government are driving forward the biggest transformation of children’s social care in a generation by rolling out the Families First Partnership programme. We have backed the programme with nearly £3 billion over four years, including an investment of over £2.4 billion in this multi-year settlement. It gives local authorities, police and health partners the tools to provide families with the right support at the right time, shifting the system from expensive statutory provision towards early intervention and preventive support. It will help families stay together, divert thousands of children from care and transform the outcomes and wellbeing of children across the country. The investment in the Families First Partnership programme marks a milestone in transforming the children’s social care system, but we recognise that the children’s social care residential market is fundamentally broken. Local authorities are being pushed to the brink, while some private providers are making excessive profits. This cannot—and it will not—continue. Instead, we are working to reduce reliance on residential care and move towards a system rooted in family environments through fostering. Last week, the Government set out a plan to expand fostering for 10,000 more children by the end of this Parliament. The evidence is clear that taking this approach will be better for children and better for the local authorities that provide the services. Using the new powers in the Children’s Wellbeing and Schools Bill, we will explore the implementation of a profit cap in the children’s social care placement market to ensure that public money delivers value and care, not profiteering. It is obvious that the current special educational needs and disabilities system is not working for children and families. We know that it is not working for councils either, as they are seeing funding for neighbourhood services diverted into a broken system. The Government are bringing forward ambitious reforms that will create a better and financially sustainable SEND system, built on early, high-quality support for kids with SEND to improve their time at school and maximise their potential throughout life. My right hon. Friend the Secretary of State for Education will set out the details of those reforms in the upcoming schools White Paper. Crucially, we are taking action now to support local authorities as we move towards that reformed system. We will deliver this in phases, the first of which will address historic deficits accrued up to the end of 2025-26. All local authorities with SEND deficits will receive a grant covering 90% of their high-need deficit up to the end of 2025-26. This is subject to local authorities securing the Department for Education’s approval of a local SEND reform plan. On homelessness, as my hon. Friend the Member for Leyton and Wanstead (Mr Bailey) has said, we know that temporary accommodation is a growing financial pressure on councils, with near record levels of rough sleeping and declining social housing stock. The final settlement also provides a £272 million uplift to the homelessness, rough sleeping and domestic abuse grant, taking total investment delivered through the settlement to £2.7 billion. On the ground, that will mean families off the streets; kids out of temporary accommodation and instead living in safe, secure homes; and people’s lives put back on course. We are matching that landmark investment with our national plan to end homelessness, led by the Minister for Local Government and Homelessness, to put the full might of the state behind preventing homelessness before it happens. Today’s settlement is about keeping a promise—a promise to repair the broken foundations of local government, and a promise to put the heart back into our communities. When the last Conservative Government slashed councils to the bone, the consequences were severe: the services people use every day were undermined, streets became filthy and people’s lives got tougher. The hard work of councillors, mayors and frontline staff kept vital services running during those hard Tory years, and we thank them for the work they did in those circumstances. Our aim is a future where councillors, working with their communities, have the freedom to innovate—rebuilding public services and investing in high streets, youth clubs and libraries. We are fixing the foundations so that councils and their communities can build the public services, renew the high streets and shape the future they want to see.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  At core, what we are hearing from all parts of the House at the moment is people’s views on the fact that under the previous Government, the alignment between funding and deprivation was broken, and this Government are bringing it back. Because the previous Government did nothing about it for 14 years, funding became extremely detached from deprivation. We are putting that back in and making sure that funding goes where the need is greatest, so that stealing money from the poorest communities to pork barrel Tory areas—which the former Prime Minister bragged about—can no longer go on.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I believe the hon. Lady has had several meetings with my colleague the Minister for Local Government. It is right and very important that we should align funding with need; that is the only way to ensure that funding is fair across the whole country. That is what we promised to do in our manifesto, and that is what we are doing with this settlement.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  The settlement follows a funding formula and takes account of the costs of delivering food waste recycling in the way that the hon. Gentleman described earlier.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I am afraid the hon. Gentleman has misunderstood how it works. An area does not get diluted. The scheme looks at super-output areas on a very small level so we can ensure that the funding goes to those areas with the highest levels of deprivation. I would be happy to write to him about the process if it would help him to better understand how it works. For the vast majority of councils, increases in council tax will be restricted to 3%, and 2% for the adult social care precept.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I am grateful for the hon. Gentleman’s words about Pride in Place. I am glad that he has answered the question of the hon. Member for Spelthorne (Lincoln Jopp), because that money is being distributed to constituencies represented by Members right across the House. On the point that the hon. Member for Wyre Forest (Mark Garnier) makes about food waste recycling, funding for that has been built into the settlement, so it is present. The new burden is being funded in that way.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I thank my hon. Friend for his intervention. What he is seeing is the realignment of funding with deprivation, and that is as it should be.

• 11 Feb 2026 · Local Government Finance · Hansard source

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  I have taken an awful lot of interventions, more from the opposite side of the House than from my own side, so with your kindness, Madam Deputy Speaker, I will make a little progress. I thank all who contributed to the provisional settlement consultation. We listened carefully to views expressed by councils and MPs, and today I am pleased to announce an additional £740 million in new grant funding over and above the provisional settlement. This means that by the end of the multi-year settlement, councils will benefit from a 15.5% increase in core spending power, worth over £11.4 billion, compared with 2025-26. When this Government took office, we introduced the recovery grant, targeted on those areas held back the most by Tory and Lib Dem austerity. This year we have maintained that grant, so every upper-tier council that received it will see a real-terms boost. I can announce a £440 million uplift to the recovery grant over the multi-year settlement targeted at councils the Tories hit with below average funding increases. By the end of this Parliament, we will have invested a total of £2.6 billion in the most deprived councils through the recovery grant, over and above what they receive through the settlement. I have also listened carefully to feedback from the sector about business rates pooling. As a result, I am compensating any authorities that would have lost funding this year so that they have time to adapt to the new arrangements.

• 22 Jan 2026 · Local Government Reorganisation · Hansard source

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  As the right hon. Gentleman will be aware, his party fiddled funding to councils so that areas voting Labour were less likely to get funded. He does not have to take my word for it: the former Prime Minister was captured on video standing in a garden in Tunbridge Wells and boasting about how he was ripping money away from poorer communities to give it to wealthier communities. Perhaps it has something to do with that.

• 22 Jan 2026 · Local Government Reorganisation · Hansard source

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  Unfortunately, I cannot prejudge the outcome of a consultation process, but I can perhaps say that I have been very impressed by the work done by North East Lincolnshire council, with no prejudice to the decision that will follow.

• 22 Jan 2026 · Local Government Reorganisation · Hansard source

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  There is no question in ordinary circumstances of a general election being delayed. That has only ever happened in cases of national emergency, and that remains the case.

• 22 Jan 2026 · Local Government Reorganisation · Hansard source

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  Indeed. It was the right hon. Member, the self-styled new sheriff in town—now, of course, a member of Reform UK Ltd—who made many of these decisions. To those who say we have cancelled all the elections: we have not. To those who say it is all Labour councils: it is not. I have asked, I have listened and I have acted —no messing about, no playing politics, just getting on with the job of making local government work better for local people.

• 22 Jan 2026 · Local Government Reorganisation · Hansard source

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  Yes, we will apply that guidance. Of course, we will listen to all representations about proposals for reorganisation, including my hon. Friend’s proposals for Nottinghamshire.

• 22 Jan 2026 · Local Government Reorganisation · Hansard source

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  My hon. Friend is absolutely right. We are proceeding with this reorganisation in order to eliminate duplication and the cost of that waste, so that the money can be spent on frontline services instead. I have asked councils for their views on whether postponement would speed up their ability to carry out the reorganisation and get the new, streamlined councils off the ground, and I have responded to their representations.

• 22 Jan 2026 · Local Government Reorganisation · Hansard source

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  I completely agree with the thrust of what my hon. Friend says. We want to go ahead with this reorganisation precisely so that we can improve public services and let councils get on with what they should be doing. Growing local economies and putting more money in the pockets of local people, including his constituents, is our priority.

• 22 Jan 2026 · Local Government Reorganisation · Hansard source

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  I remind the hon. Lady that these postponements, which are at the request of councils, affect only those councils that will shortly be abolished anyway. They are happening so that we can more quickly have elections to the new councils that will replace them. I respectfully suggest to her, as I did to the shadow Secretary of State, that her argument is actually with those Liberal Democrat councils and Liberal Democrat council leaders who have requested postponement so that the reorganisation can go ahead on schedule. I have imposed nothing; I am merely responding to them. I suggest that she go away and perhaps have a cup of tea with some of them, so that they can explain to her how what they have requested does not damage democracy.