Local Government Finance (Rural Authorities)

Debate between Ian Liddell-Grainger and Caroline Nokes

Monday 11th February 2013 Commons Chamber

[Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)]

May I say, Mr Deputy Speaker, that the telling off you gave me was the nicest one I have ever had?

I want to give a practical view of where we are. West Somerset district council—my hon. Friend the Member for Tiverton and Honiton (Neil Parish) knows it well, but it will be better known to most colleagues as Exmoor—has 30,000 people in 260 square miles. It has a budget of just £5 million and is in severe financial difficulties. One of its problems, not just now, but over many years—this goes back a long time—is that it has battled against various Government cuts. It has now got to the stage where, unless severe decisions are made, it will no longer exist. It has had to sign a protocol with Taunton Deane council—the next-door borough council, which, I am glad to say, is Conservative—enabling it to be helped with both the budget and the taking over of resources.

The Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Great Yarmouth (Brandon Lewis) has been to West Somerset to help, so he is well aware that the grant has been cut over many years. Although he has managed to find the council a bit more money this time around, it is only worth 1%, or £45,000. A 3.7% increase in rates is only about £40,000, given the low base.

My hon. Friend the Member for Thirsk and Malton (Miss McIntosh) made the point about the cost of living in rural areas. It shows in West Somerset. Unfortunately, if this situation continues, West Somerset will not be the only one. I can assure all colleagues that other district councils will be in the same position in a few years.

[Caroline Nokes (Romsey and Southampton North) (Con)]

Does my hon. Friend agree that one of the significant problems is that the cost of delivering services in rural areas has simply not been reassessed for many years and that it is high time that that reassessment took place?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. The hon. Lady was at the very top of the list, but she has now dropped down. I did warn people what would happen.