Local Government Finance
Debate between Brandon Lewis and Andrew George(10 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Brandon Lewis
The difference between the urban and rural authorities is between 13% and 10% when it comes to spending power, depending on whether we are looking at the counties or the districts. We will be working with the Department for Environment, Food and Rural Affairs over the next few months to do some research on the difference in the cost of delivering services, which is raised regularly by Members from rural constituencies, and get to the bottom of the issue.
Andrew George (St Ives) (LD)
No doubt the Minister has studied the case made by the Rural Fair Share campaign and will be aware that Cornwall, for example, is not only rural, but among the most deprived areas of the country. Does he accept the principle that there is a comparative unfairness between urban and rural local authorities? Even if he cannot address the issue now, does he accept that the Government should address it in time?
Brandon Lewis
As I have said, the difference in spending power between urban and rural areas is between 13% and 10%—unless we are talking about a fire authority, in which case it is plus 3 for rural areas—so there is definitely a gap between the two. The work that DEFRA will do will look at differences in the costs in rural and urban areas.
Local Government Finance
Debate between Brandon Lewis and Andrew GeorgeUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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Brandon Lewis
If the hon. Gentleman looks at the starting model, he will see that Wokingham had rather less spending power per dwelling than Birmingham in the first place.
Andrew George (St Ives) (LD)
The Minister accepted in his statement that rural areas were being comparatively underfunded, but I am sorry to say that, once again, the adjustment in the settlement is chicken feed when it comes to addressing the inequality between rural and urban areas. Does the Minister not realise that, at this rate, it will take more than 1,000 years to put that right?
Brandon Lewis
We have actually increased last year’s amount. We have put it into the baseline. I appreciate the point made by Members about the need to narrow the gap between rural and urban areas, but they should appreciate that we are acting against the backdrop of the financial mess in which we were left by the last Government and with which we now have to deal. Obviously, that somewhat restricts our room for manoeuvre.
Oral Answers to Questions
Debate between Brandon Lewis and Andrew George
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.