English Devolution

Debate between Simon Hoare and Jim McMahon

Monday 16th December 2024 Commons Chamber

[Jim McMahon]

When Labour was last in government, we brought forward landmark legislation to create the Mayor of London, Parliaments in Scotland and Wales and the Assembly in Northern Ireland. The quality council status was introduced for parish and town councils, and powers on wellbeing and other matters were given to local government. The previous Labour Government recognised, just as this Government recognise, that devolution has to work from the top to the bottom and the right powers have to be in the right places. At a neighbourhood level, we see town and parish councils playing a critical role in devolution, and we look forward to further discussions with the sector.

[Simon Hoare (North Dorset) (Con)]

There is much to commend in the White Paper and, broadly, the Minister is to be congratulated. However, he knows as well as I do, as welcome as the multi-year settlement announcement is, it is predicated on an outdated and effectively broken funding system. I understand the Treasury is not keen to revisit that in any meaningful way, but may I urge him to consider a rural-proofing mechanism to the funding formula, to ensure that the additional costs of delivering local services in rural areas are recognised? Change is scary, but I do not recognise the picture painted by the hon. Member for Mid Dorset and North Poole (Vikki Slade). In Dorset, we became a unitary authority, and no sane person would ever want to go back to a two-tier system, but we benefited from the excellent skills of Paul Rowsell, who died earlier this year and is much missed. Will the Minister ensure there are expert teams within his Department to work alongside those councils that wish to make that important change, which will deliver savings and better services to local people?

[Jim McMahon]

I thank the hon. Gentleman, who is my predecessor, for his question and for the tone with which he dealt with us in opposition; I honour that in return. The fair funding review is absolutely critical. We are committed to a multi-year financial settlement, which is about giving security, but we all know there is no security if the money is insufficient to meet demand. The hon. Gentleman and the House have absolute assurance that all the cost factors, including the cost of rural service delivery, will be taken into account in a fair funding review.