Jim McMahon
MP for Oldham West, Chadderton and Royton · Labour (Co-op) · United Kingdom
“At the end of the day, it is not possible to go to a corner of England and not see somewhere that was impacted by all those years of austerity and the lack of investment that went alongside it.”
“I congratulate my hon. Friend on being the champion she is for Bournemouth. I would reflect on how the experience there, with the cuts to local government over many years, has impacted the services on the ground that would have been provided—both the neighbourhood’s quality of place and the economic focus on tourism.”
“The Government have decided that both foundation strategic authorities and mayoral strategic authorities will be empowered to raise a levy to support growth in their areas.”
“There is no expectation that councils will see a cut in the way that the hon. Lady explains—I am not quite sure what the rationale is for that.”
“I think those are really important points. My hon. Friend is a fantastic champion for Cornwall and its economy, and he also recognises that the local partnerships that are developing are marshalling around devolution in quite an interesting way.”
“It will entirely depend on how local leaders decide to design the scheme, which will require conversations at a local level and, I would say, give and take.”
The complete record
Every one of 600 lines we hold for Jim McMahon, in date order, each linked to its source. Free to read, in full, without an account. Page 6 of 12.
“I believe that very strongly, actually. Even Members who are not church attenders will take part in civic life at a local level that is closely linked to their local parish church. I think about Remembrance Sunday and the role parish churches play in those reflections. I think about our own Mayoral Sunday, which is celebrated every year, where the mayor of the borough of Oldham is the honorary church warden in the parish church. Regardless of individual faith and belief, I think it is accepted and celebrated that parish churches are a significant part of local identity and a place for all people to come together. I welcome the hon. Gentleman’s new church leader on that basis. That is a reflection of the value that we as a Parliament place on the Church of England, which is why bringing the debate to the House today was so important.”
“The Government believe it is right that students are disregarded for council tax. If the only residents of a household are full-time students, the dwelling will be exempt. In the recently published fair funding review 2.0, the Government proposed to fully account for the impact of student exemptions in the distribution of the settlement.”
“The fair funding review will do what it says on the tin: it will make sure that, for the first time ever, all component pressures that councils face in delivering public services, and in raising money locally, are taken into account. It is wrong that while this Parliament can decide on national exemptions that councils have to apply, which limit their ability to raise council tax locally, we do not account for that in the distribution of funding that follows. For the first time, we will do that.”
“The fair funding review 2.0 is out to consultation. We welcome contributions to the consultation from Members, local authorities and others. At heart, we want to fully account for the ability of an area to raise income locally. Nationally, there are 245,000 student exempt dwellings and 77,000 halls of residence. It is quite right that we take that into account when we assess how much council tax can be raised locally. In some cities and towns, that will make quite a material difference.”
“We are committed to improving how we assess need to ensure that central Government funding is distributed fairly to the places that need it most. We began at the last settlement with the £600 million recovery grant, and subject to the fair funding review 2.0 consultation, our proposed reforms mean that the most relatively deprived places will see larger increases in income than the least deprived places.”
“My hon. Friend makes a very fair point. There are two aspects to this. First, we must make sure that places get the investment they need to realise their full potential. We are working on that with our plan for communities, which the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Nottingham North and Kimberley (Alex Norris) is engaged in. But that has to be built on fair funding at the base of what the local authority does. There was nothing fair at all about the previous Government impoverishing councils in the most deprived communities, sending many to the wire. We are putting that right.”
“I am sure that the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Nottingham North and Kimberley has heard those diligent representations. It is true that many parts of our country have talent and potential that are not being met by opportunity. This fund is about making sure that every area has seed investment to begin to rebuild, supported by fair funding for the local authority. We cannot underestimate the effect of the 14 years of constant hits and attacks from the previous Government. There is a reason why many communities have the resilience to stand up for themselves regardless of all that: the power of their unity. Finally, they now have a Government on their side.”
“Importantly, we must consider the ability of a local authority to raise tax at a local level to meet the demand. It is the Government’s job to act as an equaliser in the system.”
“I thank the former Minister for those representations. On the point about fair funding and unpicking where money is needed, there is a lot of commonality on this issue in the Chamber. We absolutely accept that in rural areas the cost of service delivery is higher in some cases, such as for refuse collection and adult social care. It is common sense that if people have to travel further to pick up bins or make a home care visit, it will cost more money as a result. However, that is not the only thing we need to take into account. We must take into account deprivation and the ability of a council to raise money at a local level. Daytime visitor numbers are also a factor, where a council is not getting a tax take from those visitors but there is a public service take on the other side.”
“We are in a consultation now, so we are willing and ready to hear representations, but many people—I am not accusing the hon. Member of this—have jumped to conclusions based on headlines that are not supported by the evidence when we track where money ultimately goes. All the matters that she rightly said need to be taken into account are taken into account. In the consultation, we have included the cost of temporary accommodation in the base formula for the first time ever, so she will find that outer-London boroughs in particular will benefit from that. So far, they have been underappreciated for the cost of that pressure.”
“The hon. Gentleman will know that it is Labour councils that are leading the charge at a local level to regenerate local communities and invest in local businesses—the evidence is there. They are supported by the plan for communities and the community right to buy; there is a real effort in this area. He did not give prior notice of his intention to raise the particular issue that he mentioned, but if he wants to follow up in writing, we will certainly look into it.”
“The real issue for most councils is that the Liberal Democrats did not make hay when the sun was shining in their coalition years. Let nobody in local government forget that the seeds of the erosion of local neighbourhood services started in those coalition years, when the Liberal Democrats more than ably abetted the Conservative Government at the time.”
“My hon. Friend will know that, for the right reasons, we have put a significant amount of energy and time into meeting parliamentarians from across the House to discuss those local issues. Absolutely, we will meet; that will probably be the sixth meeting that we have had with Cornish MPs on this issue. We understand, respect and are investing in the Cornish identity, but we also need to ensure that the devolution agenda moves on at pace and that every part of England can realise its full potential. I am more than happy to meet on that basis.”
“We are now in a statutory process for local government reorganisation, and Devon will submit its final proposals to us by the end of November. We do not want to pre-empt those or say anything that will direct them, but I assure the hon. Member that there will be a consultation on the proposals that meet the threshold, and we will hear from that what local people say.”
“We are in the consultation period for the fair funding review 2.0 until 15 August. The issue of housing costs being taken into account when we judge deprivation has been raised by Members previously, but I encourage all Members of the House and people beyond it to submit their responses to the consultation.”
“I thank my hon. Friend for the work she has done to champion fair funding across local government, particularly for York. I absolutely understand the issues. The fair funding review is meant to do two things. It takes into account the need—the cost pressures driving local authorities—set against the resource, which is how much local authorities can raise in council tax at a local level. It is the Government’s role to be the equaliser to ensure that every local authority can afford decent local services, but I absolutely take into account her representations.”
“We will legislate in due course when the Secretary of State for Education is assured that they are operationally ready and is satisfied that the required statutory tests have been met in each of these areas. In December 2024, the three councils submitted supporting information on their potential use of proposed functions, including feedback gathered through their engagement with local stakeholders. The outcome of that engagement demonstrated local support for the conferral of the new functions upon each of the councils, and in laying this instrument before Parliament, the Secretary of State is satisfied that the statutory tests in the 2016 Act are met, namely that making the regulations is likely to improve the economic, social and environmental wellbeing of some or all of the people who live or work in the relevant local authority areas.”
“The regulations will come into force the day after they are made and confer housing and regeneration functions on the respective local authorities, as agreed in the devolution agreements. Accompanying the regulations, we have laid a report, under section 17(6) of the 2016 Act, providing details about the public authority functions, including regeneration functions held concurrently with Homes England being devolved to the authorities. Additional funding will be available for the areas through the adult skills fund, devolved to the councils from the 2026-27 academic year, as well as the education skills functions. The Department for Education will work with the councils to support their preparations and ensure that they meet the necessary readiness criteria.”
“I beg to move, That the Committee has considered the draft Buckinghamshire Council, Surrey County Council and Warwickshire County Council (Housing and Regeneration Functions) Regulations 2025. It is a pleasure to serve under your chairmanship, Sir Edward. The regulations were laid before Parliament on 9 June 2025. This Government have emphasised our commitment to transferring power out of Westminster into local communities, and this instrument provides for the implementation of the devolution agreement that was confirmed on 6 March 2024 between the previous Government and the three councils concerned. I am pleased to say that in May 2025 all three councils consented to the making of this instrument. The regulations will be made, if Parliament approves, under the enabling provision in the Cities and Local Government Devolution Act 2016.”
“If the point comes when these areas receive a mayoral strategic authority, as it will be known under the new Bill—the Houses of Parliament need to go through the process of confirming that position—the powers will be conferred, alongside a range of other powers, which would be quite normal. I should say that nothing will be presented to Parliament in the English devolution Bill that cuts across what we now consider to be the foundational agreements that are in place. We would encourage willing local authorities to collaborate and come together, even if that is without a mayor being in place, so that further powers can be devolved to current local authorities.”
“In a sense, these are legacy agreements made under the previous Government that we are keen to honour. We know that councils worked in good faith when preparing their devolution agreements with the previous Government, and we want to ensure that—notwithstanding the transition period following the English devolution and community empowerment Bill—we can honour those arrangements as much as possible. It is accepted that we are in a period of significant transition for local government in England, both in reorganisation and the creation of new combined authorities in these areas, but we do not think that is a reason in itself to hold back powers.”
“It may well be that, later, there is a devolution agreement set across that bigger geography that we then return to as part of a second SI. We are in a period of transition, and it will take time. We did not believe that it would be right not to fulfil the agreement of the previous Government with the councils that have acted in good faith, notwithstanding those transitional arrangements. That brings me back to the statutory tests. It is our belief that the economic, the social and environmental wellbeing of some or all of the people who live or work in the relevant areas will be met. I thank local leaders and their councils for their hard work in the Government’s critical mission to widen and deepen devolution in their areas. I commend these regulations to the Committee.”
“I can check that particular point about the role of district councils in authorising. It may be that we follow up with officials on that point. I would also add that areas in Surrey are part of the accelerated timetable for local reorganisation, and we are now out to consult on the final proposals that have met the statutory test that we set out. We are in that statutory process and that will move to shadow elections for the new unitary authorities as early as May next year. At that point, there will be a transfer of power and responsibilities across to the new unitary councils, and at that point we will consider new SIs that transfer the powers from the existing council structures to the new unitary councils as they come into force.”
“With your permission, Sir Edward, I think I have covered the points that have been made. I can confirm to hon. Members that this instrument delivers a commitment made in the devolution agreements with Buckinghamshire, Surrey and Warwickshire to confer housing and regeneration functions on each local authority. Question put and agreed to.”
“That will give clarity to areas that are trying to assess whether they believe that mayoral devolution is the right move for them. Some might well decide that it is not the right time and that they want to stay longer with a foundation agreement. From a Government point of view, we will support that, if it is the right thing for that area. Likewise, however, they might well see the powers in the new Bill and say that those are worth accepting a mayor for, even if at the moment there is not yet such agreement. This is very much a Government who are open to listening and working with local areas. If there are any places that want to have conversations about further and deeper devolution, our door, here and everywhere, remains open for that. We will say more about the expansion of devolution in England over the coming days on that basis.”
“We are in a period of transition and are about to table the English devolution and community empowerment Bill in Parliament. We will need to allow Parliament to run its course and to consider the Bill in the usual way, but notwithstanding that, we want to see a standardisation of devolution across England. I will be careful not to be too critical about what we have had before, because I do not think that devolution would have grown the way it has were it not for the flexibility in reaching agreements. That was part of a necessary process to develop, to get people to support it, but it is also fair to say that as we build out devolution, there needs to be consistency in the type of powers, the duties and responsibilities, and the funding arrangements, and there needs to be transparency about how much is given to each area.”
“Their role as the planning authority does not change, notwithstanding the powers being granted for things like compulsory purchase. I confirm for the record, however, that those powers can only be used with the consent of the district council; they cannot be used if the district council does not agree. We expect—it is not an unreasonable expectation—that local authorities will work together with the new powers to ensure that local people feel the benefits. I hope that is helpful. On the point about the transfer of existing powers, it is easiest for us to refer to them as a foundation agreement—the start of an agreement of devolution and the first rung of the ladder. We of course encourage all areas to come forward that expressed an interest in further devolution.”
“I thank the shadow Minister for his usual approach, which is to be supportive of devolution, and for his recognition that when we make a commitment to a local area, it is important that we act in good faith, notwithstanding the changes we have seen. In a sense, that is how we have tried to approach the most recent elections, with some quite significant change in some parts of England, in the make-up of councils and in the priorities of the leadership of those councils. I can confirm, however, that in the cases we are discussing, consent was sought from the councils before the elections, but we received notification afterwards that they were content to proceed. On that basis, we confirmed the position. On the district councils, it is important to say that the district councils in the areas under consideration are the planning authority.”
“So, we want local councils and councillors to lead local government reorganisation in their area. Of course we have a statutory role, and we will make sure that the criteria are adhered to and the consultation takes place. Surely, however, the hon. Member will agree that it is for local people, who know their area better than people outside it, to determine what type of councils, in terms of their size and coverage, are right for their area. That should not be determined centrally.”
“To be clear, such consultation does not replace the statutory consultation that the Government will conduct with the public in those areas that are affected, to ensure that we can gauge the public view on the range of proposals that are viable and meet the criteria. On the question of whether elections will take place, which I know is an issue affecting many district councils, there is no intention, as things stand, to cancel or postpone any of the 26 programmed elections. I suppose there is a challenge, and perhaps even a tension, about the degree to which Government here in Westminster should dictate to local areas across 21 counties—covering a third of the population of England—what is right for their area. However, we have said that we will reset the relationship, and that we trust local people to know their areas better.”
“The fastest possible timetable has elections to new authorities in May 2027 and the new authorities will then go live in April 2028. I am sure the hon. Member will appreciate that it would be inappropriate for me to comment now on the specific boundaries that he mentioned or the proposals that have been developed at a local level, because that would run the risk of pre-empting decisions that are being made later in the statutory process. However, I can give clarity on some of the specific points that he raised. First, the consultation that is taking place at local level by the councils as they develop their proposals ahead of submission to Government is important. Many councils are conducting such consultations.”
“This means that residents can access good public services without paying, as they do today, the two-tier premium. We must take the brilliant leadership being shown by district and county councillors across the country, and move it into local government structures that are simpler and more sustainable. Local government reorganisation is already well under way. In March, we received interim plans for the 21 counties in the two-tier system that will undergo reorganisation. We have provided feedback to all areas as they develop their own proposals. Councils in Cambridgeshire and neighbouring Peterborough have a deadline of 28 November for final proposals to be submitted to Government. After that date, the Government will consult on selected proposals, before making a final decision on which proposals to implement.”
“We will work together to grow an inclusive economy, to reform public services and to secure better outcomes for local people. As the Deputy Prime Minister said in her speech at the Local Government Association conference last week, true reform of local government means taking a long, serious look at the plumbing of local government, and we will not shy away from shifting local government on to a stronger footing. It is clear that the two-tier system of local government just does not work. We have heard from many councils that unitarisation or council mergers can help to strengthen local leadership, improve local services, save taxpayers money and improve local accountability. Our plans for reorganisation will create structures that are simpler, more efficient and clearer to the public that local government is there to serve.”
“It is a pleasure to serve under your chairmanship, Mr Stuart. I congratulate the hon. Member for Huntingdon (Ben Obese-Jecty) on securing this debate on local government reorganisation in Cambridgeshire. His speech was very thoughtful. He covered quite a lot of ground, including ICB boundaries, devolution and the fair funding review, so it might not be possible to get through all of it. However, I am sure that we will communicate further—maybe in writing—as a follow-up on matters that we cannot cover here today. This debate is an opportunity to look ahead to what the future holds for the hon. Member’s constituency, and indeed for local government across England. The Government are committed to resetting the relationship with local government, empowering local leaders to make the right decisions for their communities.”
“We have been clear about what the Government’s role is and what the local authority’s role is. We believe that is the right thing to do. Ultimately it leads us to sustainable public services that are there to serve the public, who we are all here to serve. Question put and agreed to.”
“If it is right for their area, they can make the best case in that context. Some have gone higher, and we want to allow that flexibility in the system. On the point that the hon. Member mentioned about population size and population forecasts, it is for the local area to determine what their own housing growth forecasts are. If they want to take that into account as part of their submission, we would be open to that. I say that only because different areas are at different points in the process. Some have local plans, for instance, and some do not have local plans, but efficiency and financial sustainability, local public service delivery, community engagement and devolution should be supported, too. We are taking a partnership approach. Of course we shall give guidance, and we have set that out clearly.”
“That does not mean that Members of Parliament will have the ability to prevent a submission. A local authority has to follow the statutory process. There could be points where there is disagreement, but at the very start they should at least be in good faith and discussions should take place. We extend that, by the way, to police and crime commissioners and other interested parties at a local level, too. On the criteria that the hon. Member for Huntingdon mentioned, in the invitation that went out to local authorities on 5 February we set out the statutory guidance to support councils informing their submissions. The first was on population size. We said that as a founding principle 500,000 was where we wanted councils to start from, but it is clear that some have gone lower than that.”
“In every consultation and communication that we have had in webinars, written confirmations and statements to Parliament, we have been absolutely clear—this is a minimum expectation—that when local authorities, particularly lead authorities, are developing proposals, going out to consultation, firming up their evidence base, and testing founding principles themselves, it is a minimum expectation that Members of Parliament will be part of that conversation. It is not acceptable, regardless of political affiliation at a local or national level, for MPs who have been democratically elected, and of course have an interest, not to be part of those conversations. I am happy to put that on the record, and to follow up with local authorities that Members of Parliament should be included.”
“We have defined the criteria in this round of local government reorganisation in far more detail than any other round of reorganisation in the last 20 years, because we know how significant it is to that reorganisation’s covering 21 counties. But within those criteria and that process we have to allow for local areas to determine what is right for their area in partnership with local people. That brings me to another point. The hon. Member for Huntingdon mentioned how disconnected Members of Parliament feel from the process.”
“I find that quite a lot of conversations in Parliament conflate or amalgamate the conversations about mayoral devolution and local reorganisation. They have a relationship, of course, but they are quite separate processes. On reorganisation, it is important that local people and local councillors are given the freedom and flexibility to do what is right for their area and put their best foot forward to make a submission to the Government. We will then consult on the proposals that meet the criteria in good faith. We will listen to what local people say, and that will be taken into account. There are a range of factors that we need to consider, which I will come on to shortly, but I think it is the right approach. This is not the Government letting go.”
“New unitary authorities will be created where workforce transfers take place, but there is no reason why authorities cannot work in partnership. There is no reorganisation taking place in Greater Manchester, for example, but the local authorities in Greater Manchester are today working on building a better model for children’s residential care because they recognise that across the 10 councils they can provide a better service at a better cost with better outcomes. So we encourage partnerships to align across boundaries, and over time that will develop. We recognise that a lot of boundaries across England have never quite made sense; they have always overlapped and been a bit disjointed, but we are starting from the founding principle that alignment makes sense. We should be careful, though, not to conflate.”
“I think we can agree on that, which is why the White Paper published in December said that we need to reconcile things now and have a much simpler system of regional government in this country. The truth is that because it has been so fluid—some might say ad hoc—it has been allowed to develop in different ways in different parts of the country where there are overlapping boundaries when it comes to transport, the economy, the health service and local government. It does not make sense and makes it difficult for local people to know who to hold to account politically for decisions made on their behalf. The White Paper is clear that we want to see boundaries aligned with ICBs and other public services. There is a role for local government in reorganisation.”
“We are not willing to stand by idly while the system falls over, outcomes get worse and, in the end, costs escalate to the point of crisis. We are fixing the foundations, getting on with the job and finally giving our councils and communities the justice that they deserve.”
“Deprived communities and mayoral regions will see the benefit. The north and the midlands will also benefit—their potential has been untapped for too long. Overall investment in Scotland, Wales and Northern Ireland will be protected, and communities will have genuine control of where funding goes for their areas for the first time in a long time. We are making significant investments in the things that matter to local people—in social and affordable housing, in building safety, in homelessness and in local government. For far too long, we have seen the erosion of the things that make places safe, clean and decent and that give pride of place, because the previous Government did not take on the challenge in the way that was needed. We are not willing to do that.”
“The importance of that was set out by many Members, but in particular by the hon. Member for Bicester and Woodstock (Calum Miller), who spoke about the stability needed and ensuring that councils have that firm foundation. A fair funding formula needs to do just that, and this is a promise delivered. This Government have made choices, and we are open about those choices because they have allowed us to make the record investments that I set out earlier. One of those choices was to reform the inefficient, ineffective and outdated local growth funding landscape. As such, we are continuing the UK shared prosperity fund at a reduced level of £900 million for one financial year for transition, before we move to a model of targeted long-term local growth funding, as confirmed at the spending review.”
“Friend the Member for Shrewsbury (Julia Buckley), as well as deprivation, the ability to raise council tax locally, daytime visitor numbers, temporary accommodation cost pressures, and much more. Coming to the point rightly made by the Liberal Democrat spokesperson, the hon. Member for Mid Dorset and North Poole (Vikki Slade), the cost of labour in areas will also be taken into account. When Members see the fair funding review, I hope they will see that we have taken into account those cost pressures being felt in every local authority, and that we have done this with integrity, because it means a lot to ensure that we finally get a system right that for too long has, frankly, been broken. All these measures are being supported by the first multi-year settlement in a decade.”
“To add to that, the escalating cost crisis in adult social care, children’s services and temporary accommodation makes matters even worse. It is not fair for outcomes or for councils either. Although the previous Government said they understood this, they failed to take the action needed to address it—we will not make the same mistake. The fair funding review 2.0 consultation, launched last week, sets out the heart of the matter. We will take into account the real cost pressures being felt in key areas, as highlighted by my hon. Friend the Member for Bexleyheath and Crayford (Daniel Francis). We will also take into account remoteness, as rightly identified by my hon.”
“That is why we are absolutely committed to working in partnership with the sector to rebuild local government from the ground up so that it is fit, legal and decent, getting ahead of the crisis management and delivering better outcomes for the people we were all sent here to represent. The recent spending review provides an extra £5 billion of new grant funding in the next three years, including £3.4 billion of new grant funding to be delivered through the local government finance settlement. We are going even further by fundamentally reforming the local government finance system. The current system is an outdated model that means some places face neighbourhood decline. It hits at the heart of what it means to live a decent life in a good place.”
“Many of those kids are away from school and their friends and are often in accommodation that none of us would choose for our own families, as my hon. Friend the Member for Welwyn Hatfield (Andrew Lewin) rightly said. I say to the House that if it is not good enough for our own children, it is not good enough for any child, and we will address this scandal head on. I assure the House that the Government are under no illusions of the scale of the financial challenge that our councils face. I know the difference that councils can make, having had the honour of serving as a councillor over many years.”
“Supporting the most vulnerable in our society is at the heart of our Department’s work, so we are pleased that we are making record investments into our homelessness system this year, including a £233 million uplift that will take homelessness funding to over £1 billion in 2025-26. Alongside this, we have increased funding for the local authority housing fund by £100 million this year, allowing councils to invest in the long term by increasing their stock of temporary accommodation. This will allow us to begin to bring to an end the use of unsuitable and expensive bed and breakfasts to house families. It is a matter of national shame that over 165,000 children live in temporary accommodation.”