Local Government Finance (Rural Authorities)

David Ruffley Excerpts

Monday 11th February 2013 Commons Chamber

[Neil Parish]

My hon. Friend makes a good point. Back in 2004 we saw funding drift away from rural authorities towards urban authorities and we thought that now there would be a rebalancing, but that is not happening and, as he says, we will have to wait until almost 2020 before that is put right.

If we do not get this year’s settlement right, lower funding for rural authorities will follow in subsequent years. We will see many changes, especially in district councils, where business rates will be retained, but the amount that they are able to spend will still be controlled by central Government. That is why this year’s settlement is particularly important.

[Mr David Ruffley (Bury St Edmunds) (Con)]

On that point, in my 15 years as a Member of Parliament I do not think I have seen such anger on the part of rural council leaders in Mid Suffolk district council. One of the most numerate of councillors I have ever met, Councillor Derrick Haley, who has cut services to the bone and been incredibly efficient and innovative, is incredibly angry. Has my hon. Friend picked up that sense of anger from very competent, diligent and loyal Conservative council leaders?

[Neil Parish]

My hon. Friend is right. The position is the same in Devon, where the Devon county council leader made enough savings to get through the current budget and was going forward well, but his budget was cut yet again. That is the problem. Devon is reputed to have more roads than Belgium, for instance, which is why the cost of repair, particularly after the floods, is so large. [Interruption.] It is absolutely true. There are more roads in Devon than there are in Belgium.

Rural authorities have to deal with high fuel prices, and the cost of education in schools is much higher. Devon is the 244th lowest in the table for school funding. All these factors need to be taken into consideration by the Government so that we get a fair share. I have much more to say, but in order to give colleagues time to speak—