SIGOMA Chair calls for support for "left behind" places in the Spending Review

Posted on June 10, 2025

By Johnathan Bunn

A senior Labour figure in local government has said he is “confident” the spending review will boost council funding as he called for further measures to support people struggling in poorer areas.

Sir Stephen Houghton, leader of Barnsley Council and chairman of a group of councils largely in deprived areas in the North and the Midlands, also expressed concern that capital investment could be channelled to big cities and not “left behind” places.

Rachel Reeves announced that nine million pensioners in England and Wales will receive the winter fuel payment this winter, in a £1.25 billion U-turn on the Government’s previous position.

Speaking exclusively to the PA news agency, Sir Stephen welcomed the move and other recent measures such as the extension of free school meals.

But he said a broader package of initiatives aimed at supporting low income working families is now necessary and would represent an “important political statement”.

In a statement released by the Special Interest Group of Municipal Authorities (Sigoma) in response to the announcement on winter fuel payments, Sir Stephen said: “I am confident that the Chancellor will continue in this spirit and use the upcoming spending review to provide further financial support to councils who are working hard to deliver for residents in challenging times.”

When asked to explain why he is confident at a time when revenue spending will be limited by factors such as slow growth and high borrowing costs, he said: “Speaking to ministers (in the Ministry for Housing, Communities and Local Government) and speaking to advisers in the department.

“I have spent 14 years lobbying for this unsuccessfully with the previous government.

“I am confident because (local government minister) Jim McMahon is a former council leader, and he gets it.

“We have got to make sure that he doesn’t get overruled by the Chancellor and the Prime Minister who are getting pressure from other parts of the country.

“I think he will hold his nerve.”

Sir Stephen identified reducing transport and social rent costs as measures which would benefit the community in Barnsley and elsewhere, adding they should be part of a “comprehensive” support package.

“That will do the Government good, both politically and by helping the people that need it the most,” he added.

On capital investment, Sir Stephen warned of a “real danger” that the Treasury will prioritise infrastructure spending on big cities to secure a “maximum return”.

“Civil servants are telling ministers that the problem with that is it provides the least political return because these cities are already voting Labour,” he said.

Advocating an alternative approach, Sir Stephen added: “Left behind communities deserve to have economies that function effectively, and you can get growth there as well if you invest.

“These are the places that have been leaving Labour.

“Why can’t you have a decent quality of life if you live in Bolton, Bury, Blyth or Grimsby?

“Those communities are the ones that, for 30-odd years, have seen the big cities be the be-all and end-all.

“That leaves you with Brexit.

“It leaves you with, from a Labour perspective, Boris Johnson majorities in red wall seats. It leaves you with riots last year.

“It leaves you with Reform (gains in the local elections) just a month ago.”

“We need a short-term package of measures to say ‘we are bothered’ – life is hard,” he added.

You can read the article here.