The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)
I thank the hon. Member for North Shropshire (Helen Morgan) for instigating this debate. I am only sad not to see the hon. Member for Strangford (Jim Shannon) in his place—this may be the final Adjournment debate of the Session, and I feel personally hurt that he has not been here to intervene and to give Strangford’s take on Shropshire. However, I am sure he is somewhere thinking of us and kicking himself that he is not here.
The hon. Member for North Shropshire was right to say that all politics is local. She is also right to echo something that I have said on many occasions: most people’s exposure in our communities is to the facilities and services provided by local councils for their communities. We agree absolutely on that. I want to place on the record my thanks to all the councillors and officers of Shropshire Council, and indeed to local government across the country, for all that they do and strive to do. They get out of bed in the morning to achieve for their communities, to deliver change, to make place and to improve opportunities and living.
The hon. Lady referred specifically to libraries. Libraries is a topic very close to my heart, both as a keen reader and, as a child, an avid attender of our local library. Dorset Council has done the most phenomenal work with its libraries in similarly challenging circumstances, being a rural council and the like. I am pretty certain that should her officers in Shropshire reach out to those in Dorset, they would be happy to provide some advice or guidance—call it what you will—on safeguarding the future delivery of those important services.
The hon. Lady is right that I have acknowledged—the Government have acknowledged—the challenging financial circumstances of local government, brought about in whole, or certainly in very great part, by pressures on adult social care, special educational needs and disabilities, and home-to-school transport. Around about 80% of an upper-tier council’s budget is spent on 10% to 15% of its population. We just have to watch that balance to ensure that council tax payers feel that they are getting something for their money. As she will know, I have not committed on behalf of the Government to a root-and-branch review of the local government funding formula, because my assessment is that it is all but broken—an analogue proposal for a digital age that needs reworking from the bottom up. I have always asked for certainty and clarity from the local government sector, and as a Government, we have always been keen to deliver them. In the next Parliament, they could best be delivered by having, in the short term, a multi-year settlement to give that security, and then by Parliament using that time—and I cannot overstate the value that I see in this—to provide a cross-party sustainable solution for delivering on these issues.
I do not say this flippantly, because I have thought about it, but the hon. Lady has spoken in this Chamber and in Westminster Hall about local government finance and local government issues more generally, and I have answered on many occasions her questions and those of Labour Members, and it suddenly struck me early this morning—I do not know why it struck me then—that although they may identify a problem, I have yet to hear their solution. I have yet to hear the genesis of an idea from the Opposition parties. The Labour party has had 14 years to think about it, and the hon. Lady’s party has had the past nine years, but there is absolutely no idea. She told us—I jotted down her words contemporaneously —that we need to give consideration to
“how we fund social care, and indeed how we collect council tax.”
I agree with her, but she gave no suggested solution to those pressing problems. I find that very strange given that Opposition parties really have nothing else to do than beaver away on policy to put before the electorate in just a few weeks’ time.
Although the hon. Lady was right to point out that she has no idea, and no more do I, of what the result of the election will be, it is very much my hope that I may be standing at the Government Dispatch Box setting out the plans to which we have committed on the fundamental review and rewriting of local government finance. I shall leave that to the electorate of North Dorset to decide, and I hope that they put their faith and trust in me, as they have done on the past several occasions.
Let me turn briefly to some of the figures. I have said them so many times now that I get slightly bored of them, but I think it worthwhile to read them into the record. The local government finance settlement for 2024-25 makes available up to £64.7 billion—an increase in core spending power of up to £4.5 billion, or 7.5% in cash terms, compared with 2023-24. We listened to the views of local government, and many colleagues from across the House, including the hon. Lady, who knows how grateful I was that she took part in the parliamentary level of the consultation that I undertook, which was the highest level of take-up that a Minister has delivered. As a result of listening to what we heard, the Government announced additional measures for local authorities in England worth a further £600 million, including £500 million of new funding for councils with responsibility for adult and children’s social care.
What does that represent as far as the hon. Lady’s council is concerned? The settlement represents an increase in core spending power of up to £25.1 million, or 8%, making available a whopping total of £340.2 million in 2024-25. That is not small beer for Shropshire Council. I also recognise, as the hon. Lady does, the additional cost pressures and challenges of delivering quality services in a rural environment with a sparse population and longer travel times, which is why we have set such enormous store by the rural services delivery grant. As she knows, because Shropshire ranks within the top 25 sparsely populated areas in England, her council received an additional £9 million through the RSDG for 2024-25 on top of the other moneys I have spoken of, in order to assist with the importance and the difficulties of serving dispersed populations.
Is it enough—is it ever enough? Who knows? We always need more. It is important that every year, councils take the opportunity to learn from others, peer review, and engage the Local Government Association to help them modernise and seek savings through shared services and other initiatives. I know that many councils do that, but not all do. As we know, Shropshire went unitary and gleaned a huge amount of financial benefit from so doing, as did my council area of Dorset. There are things that local authorities can be doing to reduce expenditure and to use the money from the savings they make to continue to deliver those services that, increasingly, people look to their local council to deliver.
In conclusion, I am grateful to the hon. Member for North Shropshire for raising this issue. She and I share many things, including a concern for making sure that our rural areas are well represented in this place. I will continue to do that on behalf of my constituents; I hope the hon. Lady will not take it ill if I say that I hope my party will represent North Shropshire after the general election, but it has been a personal pleasure to work alongside her over these past several months since I have been dealing with local government. She has brought a lot of engagement to the process. I am just sorry that her party has not brought forward any ideas, but let us share those ideas cross-party in the next Parliament to ensure we have a robust settlement rubric that will meet demands: one that will be cost-effective and affordable, but will continue to deliver the quality of public services that so many in our communities rely upon and rightly deserve.
Question put and agreed to.