Keir Starmer is facing a potential rebellion from Labour MPS in the North West, unhappy with how much money local councils in the region have been awarded in the latest three-year settlements.
The Guardian reported on 20 January that the Prime Minister is facing another potentially damaging rebellion. This time it is Labour MPs from the North West who are causing him a headache as they urge the government to give local councils in the region more money over the next three years.
A letter has been sent to the local government secretary, Steve Reed, from Labour MPs from the Liverpool city region. In the letter the MPs seek to persuade Reed to change the recent three-year local funding settlement, which they say “unfairly penalises northern towns”.
A similar letter has been sent by the Labour mayor of the Liverpool city region, Steve Rotheram, again urging Reed to put more money into northern towns such as Warrington and St. Helen’s.
Some MPs are warning they could vote against the settlement, when it is put to a vote in the Commons, and in an attempt to force the government’s hand.
It was further reported that the MP for Knowsley, Anneliese Midgley, had recently commented in the House of Commons: “In Knowsley where deprivation is driven by low incomes, the provisional local government settlement doesn’t meet the needs we face.”
Another unnamed MP commented: “This is causing a lot of angst among north-western MPs, a lot of whom are facing a challenge from Reform UK at the next election and need their constituents to be able to feel the effect of the investment the government is putting in.”
Winners and losers in the three-year settlement game
The news that there may be a rebellion by some North West MPs on any vote in connection with the three-year settlement comes after it was reported in December that certain boroughs across the country had done very well out of the settlement.
These boroughs were said to include “Manchester, Birmingham, Luton, Bradford, Coventry, Derby and outer London boroughs such as Haringey and Enfield” They were said to be getting large increases in their spending power as part of what ministers consider a fairer system which will “restore pride and opportunity in left-behind places”.
Indeed Steve Reed, the housing and communities secretary, commented at the time: “This is a chance to turn the page on a decade of cuts, and for local leaders to invest in getting back what has been lost – to bring back libraries, youth services, clean streets, and community hubs.”
However, it was also reported that some councils in the North were not so happy with the settlement and were wondering just why they had been neglected, while outer London boroughs had done so well.
Indices of deprivation for England 2025
The government report on the areas with the most deprivation released last year, shows that deprivation can be found in many parts of the country, but also that the North tends to have the greatest deprivation.
The main findings included the following:
The single most deprived neighbourhood in England is in Tendring, to the east of the Jaywick & St Osyth area of Clacton-on-Sea , while in the North West, as many as seven neighbourhoods in Blackpool rank amongst the top 10 most deprived in England.
While it is noted that deprivation is dispersed across England with nearly two-thirds of Local Authority Districts containing at least one of the most deprived neighbourhoods in England, “Middlesbrough, Birmingham, Hartlepool, Kingston upon Hull and Manchester are the Local Authority Districts with the highest proportions of neighbourhoods among the most deprived in England”.
It was also noted by the BBC that six of the ten local authority areas with the most deprived households are in the North West. These include Manchester with 40.7%, Blackpool with 40.4%, Knowsley and Burnley both with 40%, Blackburn with Darwen with 37.4% and Oldham with 37.3% of households living in deprivation.
Is more consistency needed?
The last thing Keir Starmer needs at the moment is another rebellion from members of the parliamentary Labour Party, which could of course lead to yet another humiliating climbdown and u-turn.
Yet, while it is clear why Manchester has had its spending settlement increased, to help deal with the deprivation there, it does seem strange that Knowsley, with almost as large a percentage of deprived households has not been helped in the same way.
There certainly would appear to be some inconsistencies in the way that the government have come to the settlement. We shall have to see what the North West Labour MPs actually do and how this plays out.
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