Provisional Local Government Finance Settlement

Debate between Helen Hayes and Jim McMahon

Wednesday 18th December 2024 Commons Chamber

[Jim McMahon]

Either the hon. Gentleman does not know the status of the rural services delivery grant, or he is trying to mislead the House. A large share of large rural authorities should have got the rural services delivery grant but did not, because that grant was not about rural services. When the previous Prime Minister stood up in Tunbridge Wells and said that the Government had taken money from deprived communities and moved it across, he did not mean that it was for all communities; it was for party politics. So where were Conservative Members then when it came to those rural communities that did not get the grant? I did not hear anybody standing up and asking for their rural community to get the money for those services that Conservative Members are now trying to champion. We will absolutely make sure that deprivation and need are part of the funding reforms that are coming, but we will also make sure that we genuinely take into account the cost of delivering services in rural areas. The sector needs a fair funding review, and we are determined to deliver one.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I welcome the Minister’s statement, particularly the additional funding to tackle homelessness and provide early help and support for families. I also welcome the principle that resources should be directed according to need. However, as the Minister knows, the elephant in the room of local government finance is that the statutory override for deficits related to special educational needs and disabilities is due to come to an end in March 2026. Councils will be setting their budgets in the new year through to the end of March 2026, and if there is no plan to address the SEND deficits, many councils will be issuing section 114 notices. Councils urgently need certainty at this point, so what discussions are taking place with local authorities about the statutory override, and when will they have the certainty they need?

[Jim McMahon]

I agree about the importance and significance of the statutory override—that is felt very acutely in the Department and in the sector. We are consulting now on a number of matters, including the statutory override, and we are in constant dialogue with the Treasury about how we deal with that in the long term. In the end, this is another example of the legacy we have inherited. We are taking very difficult decisions to reconcile, reform and repair the system—decisions that should have been taken earlier but were not. That issue is very much on our agenda.