Oral Answers to Questions

Debate between Simon Hoare and Helen Morgan

Monday 22nd April 2024 Commons Chamber

[Helen Morgan (North Shropshire) (LD)]

8. What assessment he has made of the adequacy of the level of Government funding allocated to local authorities.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

In answer to the hon. Lady’s question, we make continuous assessment with regard to the adequacy of funding. In this financial year we have made £64.7 billion available to local government in England, an above-inflation increase for local authorities as their real-terms increase in core spending power is now up to £4.5 billion or 7.5% in cash terms. That includes the additional measures for local authorities, worth £600 million, that we announced on 25 January, having listened to the views of local government, to her views when she engaged in the consultation and to the views of hon. and right hon. Friends across Shropshire.

[Helen Morgan]

I thank the Minister for his answer, but we have seen Shropshire Council make £50 million of cuts this year, and we are told that there will be £60 million of cuts next year to avoid a section 144 notice. Local residents are particularly concerned about the potential closure of recycling centres and a likely increase in fly-tipping across our beautiful countryside. Does the Minister agree that rural councils are in danger of delivering nothing more than statutory services if things continue? Will he consider adjusting the way that funding is allocated so that rural councils are given an amount that reflects the cost of delivering services in their area?

[Simon Hoare]

The hon. Lady is right to point to the need to review the formula, which is a commitment for the next Parliament. She will probably be aware—I hope she is—of the £8.9 million extra that Shropshire Council received this year through the rural services delivery grant in order to deliver those sorts of services. Do I think rural councils have to reduce to statutory services alone? No. All my engagement with the sector points to a vibrancy and a commitment to innovation, shaping places and improving the lives of people up and down the country, including in Shropshire.