Local Government Finance

Debate between Alison McGovern and Greg Smith

Wednesday 17th December 2025 Commons Chamber

[Alison McGovern]

First, I must pay tribute to my hon. Friend for his work on this. I might be putting the ball in the net today, but he was the midfielder who created the goal. It is his work to reconnect deprivation and council funding that we are delivering today, and I pay massive tribute to him. He asked whether we might go further to persuade our Treasury colleagues to invest in local government. I think that the best way to do that—I will welcome his support in this—is to show the results that councils get when they are properly invested in. We see that nowhere more than in his home city region of Greater Manchester and his council of Oldham, which show time and again that they provide value for money and they are growing our economy.

[Greg Smith (Mid Buckinghamshire) (Con)]

The Minister said in her statement that she did not want to look the other way, but in reality this Government are looking the other way when it comes to rural communities. I listened carefully to the answers she gave to my hon. Friend the Member for North Dorset (Simon Hoare), but the fact is that, with the exception of adult social care, rurality has been taken out of formula decisions. Can she come to the Dispatch Box and say how areas such as Buckinghamshire, which I am lucky enough to represent, are going to be properly funded, given our rural nature?

[Alison McGovern]

I am glad that the hon. Gentleman was listening when I gave my earlier answer on rurality. We have recognised where there are extra cost pressures, and I will happily discuss this in detail with him if he wishes. This is recognised in the statement and in the data that we have taken account of. The new deprivation statistics are much more fine-grained, and they can find poverty wherever it is, whether it is in a town, a city, a village, a rural area or wherever.

Oral Answers to Questions

Debate between Alison McGovern and Greg Smith

Monday 24th November 2025 Commons Chamber

[The Minister for Local Government and Homelessness (Alison McGovern)]

The Government are changing the way we fund local authorities, reconnecting funding with deprivation after 14 years of Tory Governments cutting councils in the poorest places. The vast majority of upper-tier councils will see their income increase in real terms over the next three years. For 2025-26, the local government finance settlement made available up to £577 million for Buckinghamshire council—a 5.7% cash-terms increase in core spending power on the year before.

[Greg Smith]

That is a curious answer, because modelling by the County Councils Network indicates that, assuming there is a punishing 5% annual council tax increase, core spending for Buckinghamshire council will go up by only a below-inflation 2.2%—a real-terms cut. What assurance can the Minister give Buckinghamshire council that it will not find itself with a real-terms cut in spending power as it delivers essential services to my constituents?

[Alison McGovern]

As I said in an earlier answer, we made a policy statement on the fair funding review consultation last week. In addition, as I have said, the vast majority of upper-tier councils will see their incomes increase in real terms over the next three years. More details will come as we finalise funding arrangements. The Department will work closely with Buckinghamshire and all other councils to ensure that their finances are stabilised after 14 rocky years.