Local Government Finance

Debate between James Wild and Antonia Bance

Wednesday 11th February 2026 Commons Chamber

[James Wild]

Indeed. I am sure that if the hon. Lady catches your eye, Madam Deputy Speaker, she will elaborate on that.

Here is my point. Perhaps the kernel of the unfairness is the lack of recognition of remoteness and its impact beyond the adjustment for adult social care. It has been removed from most of the formulae—

[Antonia Bance]

Will the hon. Member give way?

[James Wild]

I will not give way; lots of people want to speak.

This is a serious cost pressure on rural authorities that the Government have chosen to ignore. Of course, this has been compounded by the removal of the rural services delivery grant in 2025—the loss of funding that had been put in place specifically to acknowledge the high cost of rural service delivery. That was a political choice made by a very political Secretary of State.

People in Norfolk can see in plain sight how this Government view rural areas, in the light of the farm tax, the lowering of the bus funding that the previous Government had put in place, and the scrapping of road and rail schemes in our area. I ask the Minister, who is not currently in her place—I hope the Whip on the Front Bench will make a note of my question—why Ministers rejected the evidence that Norfolk and other rural authorities submitted about the additional costs that they face and the importance of remoteness.

After remoteness, there is the recovery grant, which is supposed to be a one-off formula intended to give local authorities the funding they need. The formula was meant to be replaced, but the Government have decided to continue it for the next three years. However, there is no funding for Norfolk county council, despite the allocation, and the additional element of the final settlement, supposedly being targeted at upper-tier authorities—only Labour upper-tier authorities, it seems. It is little wonder that the Institute for Fiscal Studies said:

“Maintaining…allocations of the recovery grant does not look like a principled decision”.

I think that says it all. The policy is designed to shove all funding to Labour councils. Let us be clear: this is about shifting resources away from rural areas and into unitaries.