Why ‘red wall’ councils like mine need another bailout to survive – Sir Steve Houghton

IT is clear that Covid-19 is not impacting the country equally.
Towns like Barnsley had economic and social challenges before the lockdown struck.Towns like Barnsley had economic and social challenges before the lockdown struck.
Towns like Barnsley had economic and social challenges before the lockdown struck.

Places that were struggling beforehand are going to be hit harder and are at real risk of ‘levelling down’ rather than up, as was promised by the Prime Minister after the last election.

Every conceivable metric shows that towns such as Rotherham or Barnsley are at particular risk. These are places that suffered the most from austerity in the last decade.

Hide Ad
Hide Ad

This has had a very real impact on service provision, particularly preventative ones. Across the so called “red wall” areas of Yorkshire, more than £1bn of government funding (31 per cent) has been cut since 2010, a much higher proportion than across the rest of the country.

Sir Steve Houghton is the leader of Barnsley Council.Sir Steve Houghton is the leader of Barnsley Council.
Sir Steve Houghton is the leader of Barnsley Council.

By cutting council budgets, the Government has reduced the ability of councils to prepare for and fight the kind of health crisis we are currently witnessing. In addition, during the pandemic, the Government has consistently sidelined local expertise in favour of central control.

Councils are facing a dangerous combination of cost pressures and income losses due to Covid-19. Local government has played a key role in the national effort to combat Covid, particularly by protecting the most vulnerable in society.

We have made an extraordinary effort in housing the homeless, purchasing PPE for front-line workers, co-ordinating a massive volunteer response which includes putting food on the table for families that would go hungry, keeping transport systems running and helping struggling businesses stay afloat.

Hide Ad
Hide Ad

Across the entire Sigoma network (a lobby group of 47 councils that I chair), this represents almost £1bn of extra spend on top of existing costs.

Is Boris Johnson doing enough to support Northern cities and towns come to terms with Covid-19?Is Boris Johnson doing enough to support Northern cities and towns come to terms with Covid-19?
Is Boris Johnson doing enough to support Northern cities and towns come to terms with Covid-19?

Approximately half of this is related to the current front-line against the virus – social care. In addition, many of the normal sources of council income – business rates, council tax and various sales, fees and charges – have seen precipitous falls.

Government has provided much needed cash and at the beginning of the crisis made it clear that they would do “whatever it takes” and stand behind the sector.

However, so far the money provided will only cover a third of cost and by removing deprivation from the formula, poorer urban areas lost out in the second tranche.

Hide Ad
Hide Ad

Yorkshire “red wall” areas lost out on £84m (16 per cent) and now face a funding shortfall of more than £300m. A third bailout is required or else councils will have to make significant cuts or effectively declare bankruptcy.

And the health impacts of this devastating pandemic have not been spread evenly. Mortality data from the ONS showed that the poorest communities have seen twice as many per capita deaths as the wealthiest communities.

In Barnsley, the life expectancy difference between the wealthiest and poorest wards is shockingly nine years. To properly level up the country, these health inequalities must be addressed.

Already we are seeing that the recent rise in unemployment is particularly impacting red wall areas. The Centre for Cities stated that “cities and large towns in the North and Midlands have been hardest hit”.

Hide Ad
Hide Ad

Doncaster has seen its claimant rate increase by 65 per cent between April and May and now stands at 6.6 per cent, one of many towns and cities to have seen big increases to claimant counts that were already too high.

Our region needs proper investment – the Government should follow through on its welcome commitment to address bias within the Treasury’s Green Book which skews money towards already successful areas.

We also need a serious plan for those now leaving school or university in a tough jobs market – the Government should look back to schemes such as the Future Jobs Fund to ensure this current crisis doesn’t blight the futures of our young people.

These factors show that Government must intervene to compensate councils and make significant investments in physical and social infrastructure. Otherwise the Government will fail on its promise to “level up” left behind communities.

Hide Ad
Hide Ad

This pandemic has highlighted the fact that place matters. While all regions have suffered, I fear that it is the ones that were already struggling that will be impacted the most.

Out of the pain of the last few months, the Government has the opportunity to create a better world, especially for those who need it most. Let’s hope they take it.

Sir Steve Houghton is a Labour councillor and leader of Barnsley Council.

Editor’s note: first and foremost - and rarely have I written down these words with more sincerity - I hope this finds you well.

Hide Ad
Hide Ad

Almost certainly you are here because you value the quality and the integrity of the journalism produced by The Yorkshire Post’s journalists - almost all of which live alongside you in Yorkshire, spending the wages they earn with Yorkshire businesses - who last year took this title to the industry watchdog’s Most Trusted Newspaper in Britain accolade.

And that is why I must make an urgent request of you: as advertising revenue declines, your support becomes evermore crucial to the maintenance of the journalistic standards expected of The Yorkshire Post. If you can, safely, please buy a paper or take up a subscription. We want to continue to make you proud of Yorkshire’s National Newspaper but we are going to need your help.

Postal subscription copies can be ordered by calling 0330 4030066 or by emailing [email protected]. Vouchers, to be exchanged at retail sales outlets - our newsagents need you, too - can be subscribed to by contacting subscriptions on 0330 1235950 or by visiting www.localsubsplus.co.uk where you should select The Yorkshire Post from the list of titles available.

If you want to help right now, download our tablet app from the App / Play Stores. Every contribution you make helps to provide this county with the best regional journalism in the country.

Sincerely. Thank you.

James Mitchinson

Editor

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.