Local Government Finance

Ashley Fox Excerpts

Wednesday 11th February 2026 Commons Chamber

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

The Secretary of State and I will have had long experience of working with Morgan McSweeney during the many days he spent as head of the Labour group at the Local Government Association. I think that influence is reflected in the very political speech we have just heard from the Secretary of State. Despite its political excellence, I am struggling to reconcile his speech with what is actually in the finance statement he has laid before the House to agree this afternoon. We have a high level of agreement that local government touches all our lives in our communities. We recognise its huge potential to develop our economy, improve public health and give children a great start in life, and we know that the average local authority in this country delivers over 800 different services. They are there for us literally from cradle to grave, and are led by democratically elected councillors who run budgets that are bigger than those of many Government Departments, in organisations that are more complex than many a FTSE 100 business.

However, having served—like the Secretary of State—as a councillor under the last Labour Government, we see a swift reversion to type. Announcements of funding for social housing may arrive towards the end of the decade; funding for schools from VAT on fees for private education amounts to a real-terms cut in state school funding; and at the heart of what the Secretary of State has set out is a massive diversion of funding away from the legally enforceable statutory duties placed on councils by this Parliament and towards generalised poverty as a driver of those allocations.

[Sir Ashley Fox (Bridgwater) (Con)]

Does my hon. Friend acknowledge that the Labour Government have abolished the rural services delivery grant, a decision that has cost Somerset council £4.1 million and has cost other rural counties many millions of pounds—rural counties in which it is more expensive to provide services? Does he agree that this is Labour diverting money from rural areas that are desperately in need to Labour strongholds in the north?

[David Simmonds]

My hon. Friend is absolutely spot on. The analysis produced by the County Councils Network makes a comparison between the funding pressure on statutory services facing the urban councils that are the beneficiaries of the Government’s largesse, which totals £180 million a year, and the budget gap facing rural areas as a result of this Government’s decision, which is a £2.7 billion black hole.