Local Government Finance

Annette Brooke Excerpts

Wednesday 12th February 2014 Commons Chamber

[Annette Brooke (Mid Dorset and North Poole) (LD)]

To date, committed local authorities under all parties for the most part have managed to protect front-line services. I should like to put on record that credit is due to many councillors throughout the country, particularly given that satisfaction in council services has increased.

However, today we discuss yet another difficult financial settlement. I want to start with some positives. I welcome the extra funding to enable councils to freeze council tax for the next two years despite the fact that I believe in localism and look forward to times when it will be appropriate for more local choices to be made. Given the inherited economic situation in 2010 and the measures that have had to be taken, it has been vital to protect our constituents from further pressures on their costs of living. I note with some pride that most if not all Liberal Democrat-controlled councils are expected to freeze council tax in 2014-15—a record that, I suspect, cannot be matched by the other two major parties.

I welcome the increased efficiency grant. I have always been supportive of business rate retention as an incentive for growth and job creation and hope it can be further localised in future. I welcome the changes that have been made on the new homes bonus—a consequence of the Government listening—so that more money goes directly to local councils than was once expected. However, I recognise that London councils face considerable top-slicing and are at a disadvantage.

I welcome the move to support adult social care and the challenge to local councils to integrate health and social care services, but I am deeply concerned about whether the funding will be adequate to deal with the needs of our most vulnerable constituents. City deals and the regional growth fund provide opportunities for further decentralisation, which I welcome, along with the additional funding. I welcome the extra funding for rural councils, but I concur with hon. Members who have said that that in no way gets to the heart of the matter. The rural penalty has been with us for a long time. I represent part of Purbeck district council and have presented a petition in the House on the matter. The gap goes on and on. We are not closing it. I have constituents on low wages and there are very high housing costs.

Bus services are among the many services being cut in the rural part of my constituency—I do not apologise for bringing it up again. My constituents, whether they are going to work or college, non-catchment sixth forms, apprenticeships or work training, are simply unable to use buses, as are tourists. The most recent cuts have made the situation diabolical. From April, in one large village, with a population of 1,800, whose bus route goes through several other villages, there will be a bus to Poole only two days a week, and evening services at 5.30 pm are being slashed, meaning that workers are not being supported. I have received representations from Colehill, Wareham town council and right across the rural part of my constituency about this matter, so will the Minister meet his counterparts in the Department for Transport to discuss this serious issue? Basically, some of my constituents face a stark choice: use a car or move from the village. That is very harsh.

I remain concerned about the local council tax reduction scheme. I understand from the National Association of Local Councils that about 20 billing authorities are not passing on council tax support funding to parish councils. What further action can the Minister take? Indeed, do billing authorities have any certainty about this stream of funding for the future? I am pleased, however, that the referendum principles have not been extended to the parish councils. Some of the deficits in services can be made up as reductions are made in other areas.

Local government is facing a tough situation, and the Government must listen to councils that fear they are facing a cliff edge or a precipice in future years. I also think that the rural penalty must be addressed sooner rather than later. We need to appreciate what local government does best, which is pulling local government services together. I support the rewiring of local government services as put forward by the Local Government Association. Among other things, local government borrowing that complies with prudential rules should be facilitated, but at the same time, I thank the Government for allowing councils to borrow more money in the last financial year. I want more, not fewer, and better quality services delivered by local government, and I want other services facilitated too.