Local Government Funding: Rural Areas

Debate between James Cartlidge and Drew Hendry

Monday 11th January 2016 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The issue of local government finance, particularly in rural areas, is close to my heart, having served for eight years as a councillor prior to my election to the House. Having been leader of the opposition and then council leader on the Highland Council, an authority roughly the same size as Belgium, I have seen my share of financial challenges on both sides of the local debate, and I have great sympathy with right hon. and hon. Members discussing cuts to the budgets of English local authorities.

I would like to take a moment to pay tribute to the men and women who work across our councils. They deliver far more than many people appreciate, often in difficult circumstances, sometimes in distressing situations. Their help is there from before birth, throughout childhood and is weaved into our daily lives. It is even called upon when we die and in support of those left behind. In the light of the recent floods, special mention should go to those council employees across Scotland and the other nations of the UK who went above and beyond the call of duty to assist those in need. The scale of the flooding was exceptional, and the response in Scotland was truly first class.

Local councils, emergency services and other responders worked tirelessly to minimise the impact on communities, to ensure the safety of people and to help local areas to recover. To help them, the Scottish Government had already announced nearly £4 million for the local authority areas most affected by severe flooding caused by Storm Desmond in early December. This week, the First Minister has also announced that in the light of recent events the Scottish Government intend to make a further financial allocation of £12 million, meaning £1,500 per household and an additional £3,000 for businesses severely affected.

Since 2008, the Scottish Government have provided funding of £42 million per year to enable local authorities to invest in flood protection schemes. In my constituency, the Inverness flood relief scheme was successfully completed last year and has not only provided vital protection for Inverness, but regenerated the city’s riverside.

The Scottish Government provide funding to the Scottish Flood Forum to work with local authorities, communities, householders and businesses to help them recover from a flood event. A scheme in Whitesands in Dumfries is now included in the published flood risk management strategy for the Solway, and funding will be available to the council via the local government settlement to begin work on a scheme when ready. Funding for the flood forecasting service run by the Scottish Environment Protection Agency has been protected by the draft budget settlement. That is provided directly by the Government and is in addition to the grant in aid that is provided to SEPA. Today, the Scottish Government flood risk action plan was announced, with 10,000 properties being supported by investment of £235 million.

The Scottish Government also activated the discretionary Bellwin scheme in November and December. That exists to give special financial assistance to local authorities as a result of their providing relief and carrying out immediate work due to large-scale emergencies, including flooding incidents. The Scottish Government have also recently legislated to give councils the power to reduce and remit rates bills, which councils could use to target support to the businesses in their areas affected by the floods.

The Scottish Government are investing in rural communities, are seeking to provide better transport infrastructure, and better access to medical care and hospitals, and are mitigating the cuts made by the UK Government with a new rural fuel poverty taskforce.

[James Cartlidge (South Suffolk) (Con)]

The hon. Gentleman mentions fuel poverty. This is interesting. If there is one gleam of light for my constituents at the moment, it is the fact, as I have found recently, that if people fill up their oil tank—many rural constituencies use heating oil—the price is less than half what it was not so long ago. However, the fall in the oil price will have had significant implications for Scottish funding. I wonder whether he would care to reflect on that. He talks about UK cuts. What sort of cuts would have had to follow in the event of independence with the current forecast for the oil price and oil revenues in Scotland?

[Drew Hendry]

This is a common red herring that is introduced into the debate on Scottish funding. Scottish GDP is roughly the same as English GDP, and oil is a bonus for Scotland. When the price goes back up, obviously, the Treasury will continue to benefit from that bonus.

One of the first things that the Scottish Government did in 2007 was to decentralise local government funding by removing ring-fencing. Today, I am delighted to confirm that the Scottish Government Community Empowerment Minister has announced a £500,000 fund for a pilot scheme for people to take part in participatory budgeting in rural areas, giving people a direct say in how investment should be taken forward in their communities.

Health and social services in Scotland are to be delivered in partnership between health boards and local authorities. The Scottish Government are also taking action to support rural hospitals in recruiting and retaining their medical staff, ensuring that patients receive safe care. In some areas that will involve rotating staff between rural and urban hospitals to ensure that we continue to provide services close to communities. That work has already delivered early success in supporting general surgical services in Belford hospital. Working with NHS Highland, the Scottish Government are now putting in place a network between Caithness general hospital and Raigmore hospital in Inverness, rotating staff between the two hospitals. This will support the delivery of the majority of surgical care and all out-patient care close to the community in Wick, while NHS Highland engages with local stakeholders to develop options for high-quality, safe and sustainable services throughout Caithness.