Local Government Funding: Rural Areas

Debate between Geoffrey Clifton-Brown and Simon Hoare

Monday 11th January 2016 Commons Chamber

[Simon Hoare]

My hon. Friend is right. His comments have the extra weight of his being Chairman of the Environment, Food and Rural Affairs Committee.

The Minister should be clear that this settlement will create some jobs as local government sheds yet more staff and services are cut. I expect to see job advertisements for local government commissioners appearing in lots of publications, because a number of chief executives and leaders will be seeking, in effect, to hand the keys back to the Department, saying, “Look, pal, we have tried our best. We have done what we think we can. We can make no further cuts, hand on heart, without thinking that our electorate and our residents will be unduly hurt.”

[Geoffrey Clifton-Brown]

As my hon. Friend said, many of our rural councils have done exactly what the Government have asked. In Gloucestershire, four district councils now share back-office services. We share a chief executive. We have a common Gloucestershire-wide rubbish policy. We share business rates and second home bonuses. We have become super-efficient, yet we are one of the hardest hit local authorities, and we now have very little left to cut.

[Simon Hoare]

My hon. Friend is right. He amplifies a golden thread that has run through the debate.

I have two further points that I urge the Government seriously to reconsider. The Care Act 2014 implementation grant has hitherto always been free-standing of the RSG—a little bit of icing on the cake. The proposed settlement rolls it into the RSG, and that seems rather unfair. I am happy to stand corrected by the Minister, but it is certainly the collective view across local government in my county that, in essence, the strategy that the Department is setting out has a counter-Conservative mindset whereby every single year council tax will have to increase by below whatever the capping figure is prevailing at the time, so arguably 1.99% today, and that the ring-fenced and extremely welcome—we are grateful to the Chancellor—2% hypothecation for social care will have to be year on year. I urge the Minister to unravel the knitting that the Department has done in meshing the grant with the RSG.

On the implied and presumed increase in council tax, the insult is compounded still more by the situation, as we understand it, on business rates. We cheered my right hon. Friend the Chancellor to the rafters in Manchester just a few short months ago when he gave ground on the localisation of business rates, which local government had been campaigning on for many a long year. I hope that the Minister will be able to clarify this, but our understanding is that while we will be allowed to set it and will continue to collect it, the centre will determine how much of it we retain and top-slice or cream off that which it believes we do not need in order to underpin and subsidise other, less efficient, authorities. That is, in itself, an insult, but when we add the factored-in, year-on-year increase in council tax of at least 3.99%, things start to get very tricky.

As my late and noble Friend Baroness Thatcher would have said to those three points, taking off her glasses with a sweep, I too have to say to the Minister, “No, no, no.” The increase of the rural services delivery grant to £65 million is welcome but way south of the £130 million that the network believes is required. It might just about make a fig leaf for a dormouse but will not add up to anywhere near what is required to service rural local government.

I have some questions for the Minister, for whom I have personal liking and huge respect. I do not envy him his position as he sits like Daniel in the lions’ den with the lions not having been fed for many a long month. The questions boil down to this: where is the equity in this proposal?