Labour can’t ‘turn taps on’ for struggling councils, Sir Keir Starmer warns at local election launch
Sir Keir Starmer has warned that Labour “can’t pretend that we can turn the taps on” to help struggling councils if he wins the next general election.
The Labour leader was speaking in Dudley at the launch of his party’s campaign for the local elections on 2 May, which are taking place against the backdrop of a bleak financial picture for councils across the country.
One in five council bosses have said they think it’s likely or fairly likely they will go bankrupt in the next 15 months, while the Local Government Association, which represents local authorities, has said there is a £4bn funding shortfall over the next two years.
Asked by Sky News’ political editor Beth Rigby whether he would “commit that money”, Sir Keir replied: “Councils of all political stripes are struggling with the lack of funding they’ve had over a prolonged period.
“And we need to turn that around – we will do that.”
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Although he did not promise additional funding, he did suggest funding settlement arrangements could be altered to help councils – suggesting one-year settlements had been detrimental to councils’ budgets.
“I think there is scope for different kinds of funding settlements,” he said.
“Talk to any council leader and they’ll say the one-year settlements are very difficult for us because we can’t spend money effectively and as well as we should.
“So it’s hard because there isn’t enough money. It’s even harder because it’s a one-year settlement. We can change that around with a three-year settlement.”
The shadow hanging over Labour policies is the dire state of public finances
While Sir Keir Starmer’s local election launch contained little new in the way of policy, it was still one of the clearest outlines of what drives the Labour leader as a politician and what would propel him in government.
Put simply – it is about restoring pride in the places people live and injecting a sense of integrity back into the workforces of those areas.
In a theme we’ll likely see returned to throughout the general election campaign, Sir Keir used the language of football to sketch this out – referring to the Potters of Stoke, the Glassboys of Stourbridge and the Hatters of Stockport.
Pride of place linked with the integrity of work given form through the plain-speaking language of football.
None of these identified problems are new.
This is the well of angst that lay behind the Brexit vote. This is the concept of ‘left behind’ communities Theresa May vowed to address. This is the problem to be solved through Boris Johnson’s ‘levelling up’ agenda.
So why should voters believe that this leader will prevail when so many others have failed? On this, there is still a considerable blank space. The answer being given today is devolution.
If local people are given more power over how to spend their money, this argument goes, they will spend it better and waste less.
The shadow hanging over all this is the dire state of the public finances. Or to put it another way, what many places need is cold hard cash.
The fiscal constraints Labour appears to be wrapping around itself means that money is not there though.
Squaring that circle will be the central tension within both this local election campaign and the coming race for Downing Street.
Sir Keir added: “I can’t pretend that we can turn the taps on, pretend the damage hasn’t been done to the economy. It has. The way out of that is to grow our economy.”
At the end of last year, councils told residents they should be prepared for reduced services and tax rises due to increasing cost and demand pressures.
In Birmingham, where the Labour-run local authority declared bankruptcy after being hit with a £760m bill to settle equal pay claims, council tax will rise by 21% over the next two years while £300m in cuts will be brought in over the same period.
Read more:
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Why are councils going bankrupt?
At the campaign launch, Sir Keir said it was “unforgivable” the Tories did not follow through on their pledge to level up left-behind areas of the UK and said he had hoped to launch “a different election campaign here today” but could not because the “prime minister bottled it”.
The Labour leader said Rishi Sunak wanted “one last drawn-out summer tour with his beloved helicopter” and added: “We need to send him another message, show his party once again that their time is up, the dithering must stop, the date must be set.”
Chancellor Jeremy Hunt claimed Labour’s local election launch was a “smokescreen” and that when it was in office the party “devolved no powers to local authorities”.
Before US Election Day, Brian Armstrong said Coinbase was “prepared to work” with either a Kamala Harris or Donald Trump administration.
Politics
Row over how many farms will be affected by inheritance tax policy – as PM doubles down ahead of farmers protest
Sir Keir Starmer has insisted the “vast majority of farmers” will not be affected by changes to Inheritance Tax (IHT) ahead of a protest outside parliament on Tuesday.
It follows Chancellor Rachel Reeves announcing a 20% inheritance tax that will apply to farms worth more than £1m from April 2026, where they were previously exempt.
But the prime minister looked to quell fears as he resisted calls to change course.
Speaking from the G20 summit in Brazil, he said: “If you take a typical case of a couple wanting to pass a family farm down to one of their children, which would be a very typical example, with all of the thresholds in place, that’s £3m before any inheritance tax is paid.”
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The comments come as thousands of farmers, including celebrity farmer Jeremy Clarkson, are due to descend on Whitehall on Tuesday to protest the change.
And 1,800 more will take part in a “mass lobby” where members of the National Farmers’ Union (NFU) will meet their MPs in parliament to urge them to ask Ms Reeves to reconsider the policy.
Speaking to broadcasters, Sir Keir insisted the government is supportive of farmers, pointing to a £5bn investment announced for them in the budget.
He said: “I’m confident that the vast majority of farms and farmers will not be affected at all by that aspect of the budget.
“They will be affected by the £5bn that we’re putting into farming. And I’m very happy to work with farmers on that.”
Sir Keir’s spokesman made a similar argument earlier on Monday, saying the government expects 73% of farms to not be affected by the change.
Environment, Farming and Rural Affairs Secretary Steve Reed said only about 500 out of the UK’s 209,000 farms would be affected, according to Treasury calculations.
However, that number has been questioned by several farming groups and the Conservatives.
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Farming industry is feeling ‘betrayed’ – NFU boss
Government figures ‘misleading’
The NFU said the real number is about two-thirds, with its president Tom Bradshaw calling the government’s figures “misleading” and accusing it of not understanding the sector.
The Country Land and Business Association (CLA) said the policy could affect 70,000 farms.
Conservative shadow farming minister Robbie Moore accused the government last week of “regurgitating” figures that represent “past claimants of agricultural property relief, not combined with business property relief” because he said the Treasury does not have that data.
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Welsh farmers carried out a protest outside the Welsh Labour conference in Llandudno, North Wales, over the weekend
Agricultural property relief (APR) currently provides farmers 100% relief from paying inheritance tax on agricultural land or pasture used for rearing livestock or fish, and can include woodland and buildings, such as farmhouses, if they are necessary for that land to function.
Farmers can also claim business property relief (BPR), providing 50% or 100% relief on assets used by a trading business, which for farmers could include land, buildings, plant or machinery used by the business, farm shops and holiday cottages.
APR and BPR can often apply to the same asset, especially farmed land, but APR should be the priority, however BPR can be claimed in addition if APR does not cover the full value (e.g. if the land has development value above its agricultural value).
APR and BPR can apply to farmland, which the Conservatives say has been overlooked by the Treasury in compiling its impact figures. File pic: iStock
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Mr Moore said the Department for the Environment, Farming and Rural Affairs (DEFRA) and the Treasury have disagreed on how many farms will be impacted “by as much as 40%” due to the lack of data on farmers using BPR.
Lib Dem MP Tim Farron said last week1,400 farmers in Cumbria, where he is an MP, will be affected and will not be able to afford to pay the tax as many are on less than the minimum wage despite being asset rich.
Politics
Cabinet split over assisted dying as Education Secretary Bridget Phillipson latest to reveal she will vote against bill
A split is emerging in the cabinet, with Education Secretary Bridget Phillipson revealing she will join several of her colleagues and vote against the bill to legalise assisted dying.
Ms Phillipson told Sky News she will vote against the proposed legislation at the end of this month, which would give terminally ill people with six months to live the option to end their lives.
She voted against assisted dying in 2015 and said: “I haven’t changed my mind.
“I continue to think about this deeply. But my position hasn’t changed since 2015.”
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Details of end of life bill released
MPs will be given a free vote on the bill, so they will not be told how to vote by their party.
The topic has seen a split in the cabinet – however, Prime Minister Sir Keir Starmer has yet to reveal how he will vote on 29 November.
Ms Phillipson joins some other big names who have publicly said they are voting against the bill
These include Deputy PM Angela Rayner, Health Secretary Wes Streeting, Justice Secretary Shabana Mahmood and Business Secretary Jonathan Reynolds.
Border security minister Angela Eagle is also voting against the bill.
Senior cabinet members voting in favour of assisted dying include Energy Secretary Ed Miliband, Science Secretary Peter Kyle, Work and Pensions Secretary Liz Kendall, Culture Secretary Lisa Nandy, Northern Ireland Secretary Hilary Benn, Transport Secretary Louise Haigh and Welsh Secretary Jo Stevens.
The split over the issue is said to be causing friction within government, with Sir Keir rebuking the health secretary for repeatedly saying he is against the bill and for ordering officials to review the costs of implementing any changes in the law.
Read more:
What is in the assisted dying bill?
Why is assisted dying so controversial and where is it already legal?
Health Secretary Wes Streeting has called for a cost report into assisted dying. Pic: PA
Sky News’ deputy political editor Sam Coates has been told Morgan McSweeney, the PM’s chief of staff, is concerned about the politics of the bill passing.
He is understood to be worried the issue will dominate the agenda next year and, while he is not taking a view on the bill, he can see it taking over the national conversation and distracting from core government priorities like the economy and borders.
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Details of the bill were published last week and include people wanting to end their life having to self-administer the medicine.
It would only be allowed for terminally ill people who have been given six months to live.
Two independent doctors would have to confirm a patient is eligible for assisted dying and a High Court judge would have to give their approval before it could go ahead.
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