Local Government Funding: Rural Areas
Debate between Graham Stuart and Peter Heaton-Jones
Peter Heaton-Jones
My hon. Friend makes a strong point on behalf of his area which, as he says, is mirrored in North Devon.
In 2016-17 some specific grants were included in the funding base for Devon County Council, and if those are excluded to give a more accurate like-for-like comparison, the reduction in grant for that council is 17.4%, compared with an average of 16.6% for the shire counties. Not only do we as a rural area do worse in comparison with urban areas, we are even doing worse in comparison with other rural areas. That seems something of a double whammy for Devon.
At the other end of the local government spectrum, let me echo a point that was ably made by my hon. Friend the Member for North Dorset—he has just retaken his place. He noted how one of his town or parish councils had complained how difficult it was to plan ahead because of the annual “will they or won’t they?” capping saga, and exactly the same point was made to me by Barnstaple Town Council, which has the same horror to face every year. That is stopping it planning ahead and adequately providing the services that it needs to provide, and I urge the Minister to consider that.
There are some beneficial aspects to the settlement. I accept that the rural urban funding gap is gradually closing, and the longer, four-year settlement period is welcome as it will help local authorities considerably with their forward planning. We will not have that worried look at the Advent calendar every December to wonder when the settlement will come and what it will be, and I welcome those two points.
Graham Stuart
I hate to interrupt my hon. Friend as he moves to his peroration, but I do not believe that there will be any closing of the gap. The proposal is precisely for lower reductions in the central Government grant for metropolitan areas than for rural areas and, even with the increase in the rural services delivery grant, we will see a widening, not a closing, of an already iniquitous gap.
Peter Heaton-Jones
I am sure the Minister will clarify that. I was coming on to say in my concluding remarks that although those two elements appear to be welcome, they are not enough. I say that quite plainly to the Minister.
I am disappointed overall. I believe there is more we can do as a Government to assist areas such as North Devon. That is why I have written to the Secretary of State. I have in my hand a piece of paper: a letter I have written to the Secretary of State. It is designed to be helpful and to suggest ways in which we could, as a Government, help areas such as Devon, in particular North Devon. I hope we can achieve a fairer settlement for these areas. I look forward to working with the Minister, his colleagues and other colleagues in areas similar to mine to help to make that happen. I say this gently but firmly to the Minister, and, I have to say, with some regret: at the moment, the Government have got this wrong. We have time to put it right and I appeal to the Minister that we do so, for the sake of North Devon and other rural areas.