Local Government Finance (Rural Authorities)

Jonathan Djanogly Excerpts

Monday 11th February 2013 Commons Chamber

[Neil Parish]

Yes. My hon. Friend makes a good point, because there is an extra cost in delivering services in rural areas and rural authorities. However, whatever the cost of delivering a service, we cannot get away from the inequality in how much is given in Government grant to rural authorities compared to urban. I expected and still expect—I have great expectations of the Minister and of the coalition Government—the promise of equal shares for rural authorities to be delivered on.

[Mr Jonathan Djanogly (Huntingdon) (Con)]

The point is that we want fairness. We know that the pot had to be reduced, but we were promised that whatever the pot was, it would be more fairly handed out. Not only is that not happening, but it has now been put off until after the next general election.

[Neil Parish]

My hon. Friend makes a good point. Back in 2004 we saw funding drift away from rural authorities towards urban authorities and we thought that now there would be a rebalancing, but that is not happening and, as he says, we will have to wait until almost 2020 before that is put right.

If we do not get this year’s settlement right, lower funding for rural authorities will follow in subsequent years. We will see many changes, especially in district councils, where business rates will be retained, but the amount that they are able to spend will still be controlled by central Government. That is why this year’s settlement is particularly important.