Labour councils are the light at the end of this long, dark economic tunnel

The party's councils are filling the vacuum left by government inaction.

Councils up and down the land are facing their greatest financial crisis for generations. The coalition cuts are brutal and local communities and services are suffering enormously as a consequence. The poorest areas are being hit the hardest and the most vulnerable are suffering the most - such is Tory-led Britain.

As in any storm, councils can stay still and be swept away or get stuck in and survive. Those who innovate will go from strength to strength, while those who counsel despair will sink into a slough of despondency and take their communities with them.

And Labour councils are finding new ways to express and act on their values: fairness, mutual support and social justice.  A new report – One Nation Localism – shows exactly how. Innovating and taking action where they can, they are helping people in real ways despite these tough times. In a sense, this provides hope that an Ed Miliband-led "one nation" government will be able to pursue social justice even though the economic and fiscal climate left behind by a failed Tory and Liberal Democrat administration will be ferocious. It also shows that social justice relies on local innovation and action.

Local government funding is already being cut by a third and austerity is set to continue until at least 2018. In the pervading doom and gloom, it feels hard to be optimistic – where will the good news come from? And how can Labour present an alternative approach that shows you can deliver on your values even when money is tight?
There is no greater challenge than creating jobs and opportunity, as government inaction leaves an enormous vacuum – which Labour councils are filling. Just take Newham council’s new workplace scheme which has helped 5,000 people into work last year- many of them long-term unemployed. After the government disbanded Labour’s Future Jobs Fund, Nottingham council established their own to support young people in the city into employment. In areas as far and wide as Knowsley, Darlington and Plymouth the councils are working with local businesses to create apprenticeships and work opportunities to match out-of-work residents to.
The housing crisis continues but Labour councils are doing all they can to alleviate it in the short term and overcome it in the long term. Islington and Manchester are pioneering new models of investment in conjunction with council pension funds, to boost the supply of new affordable homes. Many more people are being forced to rent given the affordable homes crisis – and councils like Blackpool, Oxford and Newham are developing approaches to licensing to tackle rogue landlords and increase quality.
The need to overcome inequality and tackle poverty is of course at the heart of Labour councils,who see this as their core purpose. Up and down the country, in Liverpool, Newcastle, Blackpool, Sheffield , Leicester and Islington, Labour councils have set up Fairness Commissions to identify the challenges in their area and provide a framework to guide their decisions so they maximise their impact on narrowing inequality gaps. In Islington, for example, this has led to the council becoming a living wage employer and reducing its internal pay differential. In Liverpool a new approach to procurement looks to employ firms which can demonstrate clear benefits to local jobs and skills.

Twenty one Labour-led authorities have committed to a Co-operative Council approach, developing new ways of running public services to shift power and control out of town halls and into the hands of citizens. In Oldham, this means the council is finding new ways to work on the side of residents and seeking to remove barriers for them – whether by devolving significant power and funding to six districts within the borough with more direct community oversight or through a new Energy Co-operative that enables households to save up to £150 a year on their energy bills.
Taken separately, these initiatives show that given determination, councils can work to meet the needs of their residents against the odds – even though the overall national context still takes an enormous toll on people’s lives. Taken together, they chart a new agenda for Labour which recognises that even in a tight financial environment it is possible to take decisions in a fairer way. By adapting innovation to local circumstance, the one nation vision of a society bound together can be achieved without it becoming a ‘one size fits all’. In fact, is clear that greater social justice relies on different responses in different communities. Through localism, Labour’s values have become a practical reality.

One set of values, one nation, but many approaches – this is the mantra of a Labour localism. Hope is scarce resource in Tory-led Britain, but Labour in local government is digging its heals in to at least provide people with some hope despite the gloom. 

Cllr David Sparks is leader of the LGA Labour Group and leader of Dudley Metropolitan Borough Council.  One Nation Localism is available here

Cllr David Sparks is leader of the LGA Labour Group and leader of Dudley Metropolitan Borough Council

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.