Local Government Funding: Rural Areas

Lord Herbert of South Downs Excerpts

Monday 11th January 2016 Commons Chamber

[Graham Stuart]

My right hon. Friend makes a strong point.

Returning to my theme of why we should be at least cautiously optimistic about any review promise in future, the Government responded to our campaign in 2014 and promised to conduct research into the additional costs of delivering services in rural areas. They say that they cannot move to recognise it until the evidence is there, and we have long said, “Show me a single service that is cheaper to deliver per head in a sparse rural area than in a concentrated urban one, and we will be delighted to hear it.” I have not heard anything yet. Apparently the current inequities are defensible without any evidence, but any change, even on the most common-sense basis, requires vast amounts of it.

Anyway, the Government conducted the promised research.in 2014. They gathered data from councils at short notice, during the month of August. Strangely, there was a shortage of data, and—unsurprisingly—no real conclusions were reached and no appreciable change was delivered. We were told, “We are sorry, but there is nothing to justify any change.” I therefore caution colleagues not to expect jam tomorrow.

[Nick Herbert (Arundel and South Downs) (Con)]

Does my hon. Friend agree that the Government deserve real credit for announcing that they will adopt a national funding formula for schools to ensure that their funding will be delivered on an equitable basis in future, although the formula will be phased in? Should we not simply ask for the same arrangement in relation to wider funding? I am not suggesting any kind of gerrymandering of the system. I am merely suggesting the introduction of simple fairness that would recognise equality of need.