Tourism: Overnight Visitor Levy

Debate between Caroline Voaden and Jim McMahon

Tuesday 15th September 2026 Commons Chamber

[Jim McMahon]

My hon. Friend is a fantastic champion for her place, and she also recognises that within our city regions, as much as everywhere else, every community has a role to play. She will know the work done by the fantastic Middleton Arena. With more investment and more footfall, all our places—whether Middleton, Oldham or Greater Manchester more widely—can do even more.

[Caroline Voaden (South Devon) (LD)]

As vice-chair of the all-party parliamentary group for hospitality and tourism, I have sat through several evidence sessions on this visitor levy, and I have yet to hear any operator in the sector say that they support it, so I do not understand to whom the Minister has been talking. A caravan park operator said that if numbers go down in the off-season, they will only be able to be open in the high season, which has a knock-on effect on jobs, the local pub and the local café. It has a ripple effect across the local economy. The Minister talks about growth, and we need growth in the sector, because young people primarily are employed in hospitality. Such jobs are vital for young people. Can he tell me in what world he sees the tourism and hospitality industry growing under this visitor levy?

[Jim McMahon]

For the reasons I have stated many times before, if we invest in and grow our tourism and hospitality economy, that will generate more footfall, people will enjoy their stay more, and that will create more jobs, including for young people.

Rural Upper-tier Local Authorities

Debate between Caroline Voaden and Jim McMahon

Wednesday 2nd September 2026 Westminster Hall

[Jim McMahon]

In a sense, I recognise that there will be differences of opinion, depending on which local authority and what part of the country Members represent, about whether the fair funding review fully picks up all the particular circumstances. There might be more agreement on the sufficiency of local government finance. Whatever the allocation across the board, the fair funding review is intended to distribute it in the fairest possible way and in a transparent way, so that Members and councillors can see where the money is going to.

Since coming to power, the Labour Government have delivered long-overdue reforms to council funding through the first multi-year local government settlement in a decade. In doing so, we have delivered transformational changes to how councils are funded, which the public, our local government partners and Parliament have long called for. We have delivered on our commitment to give councils greater certainty and flexibility over their funding, ensuring that resources are fairly aligned to local need and simplifying the funding landscape by ending wasteful competitive bidding, which we all recognise pits one area against another.

The Government also have a very important role to play as an equaliser for local government income. During the course of the debate, I heard references to the amount of grant that individual councils get, and one grant total being compared with another. I want to be clear that the fair funding review is not intended to give every council the same central Government grant. That grant is intended to act as an equaliser for the system, so that in the end all councils have the resources to deliver the public service need in their local areas, while recognising that there are wide differences in England in the local tax bases of council tax and business rates.

As a result of our reforms, nine in 10 councils will receive funding that broadly matches their assessed relative need by the end of the multi-year settlement, up by about a third before the reforms. We recognise the different drivers in demand for services, the cost of providing them in different places and the different abilities of areas to raise council tax. We are therefore making funding available in such a way as to enable all local authorities to provide the same level of services to their residents.

For rural communities, the 2026-27 settlement was a key step in delivering a fairer system to address the issues that matter to local communities across England. It included recognising local circumstances, including differences in the cost of delivering services between rural and urban areas, and using the best available and most up-to-date data, including the latest indices of multiple deprivation to ensure that deprivation in rural areas is captured accurately. I will explain a bit more on that.

I heard references to the fair funding review not taking account of the differential cost of delivering services in rural areas. To be clear, we account for rural costs through the area cost adjustment, which is applied to all formulas. That adjustment captures the variation in wages, property rates, journey times, and a range of other factors that pick up the local variation that takes place. On top of that, we have a remoteness adjustment in social care. I hear representations that say, “Hang on. If it costs more to deliver adult social care in these areas, then surely children’s services and other services such as waste collection and other things ought to be included, too.” The area cost adjustment picks up that general difference of delivering a service in those areas. There is a balance here. We want a simplified system that can be scrutinised and understood. The more we adapt and change and really drill down on that, the more complicated it becomes, the more it has to be updated and the more that changes. There is always a balance to be had between simplicity, being understood and giving certainty over the multi-year settlement, while recognising the differences at a local level.

[Caroline Voaden]

The Minister says there is an area cost adjustment, and yet the leader of Devon county council says that Devon lost £14 million because of the rural services delivery grant, which was removed. How can those two things be true? If a grant that takes account of the fact that it is more expensive to deliver services in a rural area is removed and the council is £14 million short, the extra cost of rural services delivery has not been recognised.

[Jim McMahon]

We have always taken the view that the rural services delivery grant had, to put it mildly, a weak evidence base to support it. A political decision was made when the coalition Government came in and the grant that was given to largely urban authorities was taken away with almost no notice at all. It was replaced by the rural services delivery grant, but without the evidence base to support where it went to. Whatever criticism is applied to the fair funding review, what cannot be criticised is the evidence base that sits beneath it, because it is the best available data.

We are laying the foundations for reform more broadly. The multi-year local government finance settlement allows for £4.6 billion of additional funding to be available for adult social care in 2028-29, compared with 2025-26, including £500 million for the first ever fair pay agreement. The Government are driving the biggest transformation in children’s social care in a generation, with the families first partnership programme backed by nearly £3 billion of investment over four years, including a historic £2.4 billion over the multi-year settlement. That will support local authorities, police and health partners to provide families with the right support at the right time, shifting the system from expensive statutory provision to early intervention and prevention services.

The Government recognise that the current SEND system is not working for families, children or local authorities, and we have set out plans to reform it, backed by £4 billion of investment over three years, to deliver expertise without the need for statutory processes and embed new practice into the system. We have also heard calls for a solution to SEND deficits. All local authorities with a deficit will receive a grant covering 90% of their high needs-related deficit. The grant is projected to be worth more than £5 billion nationally, and is subject to each local authority submitting and securing approval for a local SEND reform plan.

We recognise the spending pressures from home-to-school transport in recent years, particularly in rural areas. At the fair funding review, we introduced a bespoke home-to-school transport formula that estimates local transport need for pre-16 home-to-school transport, based on pupil numbers and home-to-school distances. Furthermore, following consultation on the design of the formula, the Government increased the distance cap to 50 miles, rather than the originally proposed 20 miles. That change will see only 0.4% of pupil journey distances capped and will avoid unfairly penalising local authorities where children travel further to get to school.

We know that the cost of living and homelessness services are causing challenges too, and that homelessness can present in a unique way in rural areas. That is why we are providing more than £4 billion of funding for homelessness and rough sleeping services over the next three years, including £442 million launched last month, with new flexibility for areas to shape services to meet local need.

The Government are committed to making the changes necessary to transform public services and put local government back on its feet. Realigning funding with need and reforming the services that put pressure on local government will empower local leaders to deliver for their communities in rural areas and right across the country, as we have promised.

Devolution is a live issue for Cornish colleagues and those from other places. I give credit to Members for their representations on behalf of Cornwall and other areas. The truth is that devolution can happen only with local consent. We need areas to come forward, get local partnerships in place, and rally the support of local authorities. At a time of change in local government, when areas are also dealing with local government reorganisation, there is a lot for them to step up to. That is why we have provided support for local government reorganisation areas, as I covered in another Westminster Hall debate this week.

We want devolution to be rolled out to every area, but we recognise that the local partnerships in different areas are at different stages. There is an active discussion, which we should welcome, about what the role of community and neighbourhoods ought to be in the new settlement—devolution should go hand in hand with localism and empowerment—what the role of the local authority is, and what added value above and beyond that can be achieved if areas choose a mayoral model. To be clear, if an area is not ready yet for a mayoral model, the position is not that they cannot have devolution and that more cannot be given. I hope Members and people in local government continue to do what they have always done: rally their local areas.

Local Government Reorganisation

Debate between Caroline Voaden and Jim McMahon

Wednesday 15th January 2025 Commons Chamber

[Jim McMahon]

I think the right hon. Member is getting at the fact that there will be a range of views on this issue, but it is the Government’s job to give direction, and we believe that efficiencies can be drawn out. When asked, I think local people would say that they would much rather that local neighbourhood services are maintained and grown, rather than bear the overhead costs of organisations that exist for the sake of it. It is for the consultation, and the proposals, to draw out the best outcome in the process.

[Caroline Voaden (South Devon) (LD)]

I welcome the theory of simplifying local government, but I am concerned about the pace at which the Government are trying to move. Devon has a very complicated landscape, with Labour-run cities, a Conservative-run county and many Liberal Democrat districts. Conflicting proposals have already been submitted to the Government by the districts and the county, so can the Minister explain how the Government will adjudicate between those conflicting proposals and decide which one will come out on top?

[Jim McMahon]

We will see what comes forward from local areas. In some areas, there may well be a general consensus on the number of unitary authorities, but varying views on the boundary lines. In other areas, we can perhaps expect there to be entire disagreement on both the number of councils that should follow from the proposals and the boundaries that would be drawn as a result. At this stage, all we can say is let us see what comes forward. We will try to make the right decision by balancing identity, efficiency and the relationship to devolution going forward.

English Devolution

Debate between Caroline Voaden and Jim McMahon

Monday 16th December 2024 Commons Chamber

[Jim McMahon]

That is a good point. When we talk about important community assets, we see from an economic point of view that it is far better for them to be used and productive, but in the end we also recognise that they are hugely important to community identity and pride. In a lot of working-class areas, including Oldham, Chadderton and Royton, which I represent, the local civic building, local pub and local church are not just buildings but part of people’s story, and people really care about them.

[Caroline Voaden (South Devon) (LD)]

Top-down reorganisation of a failing council such as Conservative-run Devon county council is a bit like shuffling the deck chairs on a sinking ship. We know that years of chronic underfunding have made it impossible for councils to fulfil their obligations, so I welcome the multi-year funding settlement. However, creating larger regional authorities does not devolve power; it shifts power and responsibility away from local communities to a distant, higher-tier authority that will feel remote to towns and parishes in places such as Devon. We must have the opportunity in May to pass our verdict on Conservative-run Devon county council, which has been failing our most vulnerable children for over a decade. Will the Minister assure me that those elections will go ahead as planned in 2025?

[Jim McMahon]

It would be rude to deny the good people of Devon a spat between the Conservatives and the Liberal Democrats. But in all seriousness, it is for local areas to decide whether they want to apply to the Government to be part of the reorganisation programme. If we receive a request from that area, we will administer it in a fair way, as we would any other.