Local Government Finance (England)

Luke Evans Excerpts

Monday 24th February 2020 Commons Chamber

[Robert Jenrick]

I do not doubt the hon. Lady’s sincerity in raising the question, but I do warn against unnecessary scaremongering. The reports that we saw in the press on the fair funding review were put out by the Labour party’s local government press office. They were not based on any actual numbers created by my Department. We have not even published the consultation yet, and so I would disregard them. In fact, the Local Government Association itself later went on to say that these figures are not reliable and are not something on which local councils should make spending decisions. We will proceed with the fair funding review, and I will come on to speak more about that in a moment. We think that it is right that we update what is undoubtedly an antiquated formula and that we base the funding of local public services more closely on the needs of local communities.

[Dr Luke Evans (Bosworth) (Con)]

I am glad to hear that the Secretary of State is considering fairer funding. Getting fairer funding, as he will know, is very close to our heart in Leicestershire as we are near the bottom end of the table. One of the interesting things about Leicestershire is its sparsity and rurality. When it comes to making a new equation, will he be considering the fact that it may take a social worker, or some other service, up to an hour to move from Hinckley to, say, Twycross? Will that factor be included in future plans?

[Robert Jenrick]

It will be, yes, and that is absolutely right. It is important that the new formula, when we bring it forward, takes account of sparsity, the cost of delivering public services in rural settings and the fact that there is deprivation to be found in shire counties, as there is in other parts of the country. I say that as a representative of the county of Nottinghamshire, with long-standing pockets of deprivation in former coalfield communities, all of which needs to be taken into consideration as we bring forward a better updated formula.

Another priority on which not just social care but so many other vital services rest is ensuring that councils have the stability that they need to plan ahead, and I believe that this settlement will help them to do that. It maintains all the grants from 2019-20 and increases core funding in line with inflation. Today, I am announcing a £40 million boost for the sector from the business rates levy account—extra funding that I know will be very welcome by the sector. I recognise that this is a one-year settlement, and I will be leading another push at the comprehensive spending review later this year to ensure that local services get the long-term funding that they need. This stability also gives authorities a platform from which to drive efficiencies and learn from the very best practice of councils across the country, and will act as a spur to improvement.