Andrew George
Main Page: Andrew George (Liberal Democrat - St Ives)
Nicholas Soames (Mid Sussex) (Con)
3. What plans he has to close the funding gap between urban and rural local authorities.
Andrew George (St Ives) (LD)
6. What his policy is on the funding gap between rural and urban local authorities; and if he will re-open the 2014-15 settlement.
The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)
I recognise the case that has been made for funding for rural authorities. In February we made some adjustments to the financial settlement for 2013-14 and confirmed changes to sparsity top-ups.
Brandon Lewis
This year we changed the sparsity levels within the banding so that the reduction for rural areas is not as great as that for urban areas, thereby slightly narrowing the gap. I appreciate that Members who represent rural areas have made a strong case this year for going even further, which is why we brought in £9 million-odd in extra finance to help local authorities servicing those rural communities with deprivation.
Andrew George
I am grateful to the Minister for that response, but surely if he will applaud Cornwall council, for example, for freezing its council tax this year, he must accept that it has been persistently underfunded despite being the poorest region of the UK. When will Cornwall and places like it get a fair share of the available money?
Brandon Lewis
The hon. Gentleman is absolutely right: Cornwall has frozen its council tax this year. That is good news for residents across Cornwall, and I am pleased that the council decided to do it. Throughout the finance-setting debate we discussed the difference between rural and urban areas, and that is why we put in the extra money to help to narrow the gap. Over the course of the year, before next year’s settlement, we will continue to discuss the situation with Members representing rural areas, although I must be clear that only in exceptional circumstances would we reopen the settlement.