Oral Answers to Questions

Debate between Mark Francois and Heidi Allen

Monday 14th September 2015 Commons Chamber

[Heidi Allen (South Cambridgeshire) (Con)]

18. What steps the Government are taking to reduce the difference in funding levels between urban and rural areas.

[The Minister for Communities and Resilience (Mr Mark Francois)]

Our reforms give all authorities substantial scope to increase revenues through promoting growth. I accept that most rural authorities face challenges in delivering services that other authorities do not. Consecutive local government finance settlements have delivered a steady reduction in the gap in spending power levels between urban and rural authorities.

[Heidi Allen]

Still surprised, but delighted to be here. I thank the Minister for that answer. Cambridgeshire has a creative way for local authorities to look to bridge the funding gap. The level of economic growth is such that private investors now want to invest in our infrastructure and help us to build affordable housing. Will the Secretary of State or Minister meet me and business leaders from Cambridge to hear our case, because we have an innovative solution?

[Mr Francois]

I will certainly consider a meeting. My hon. Friend talks about promoting economic growth. The business rates retention scheme provides a strong incentive to local councils to reap the rewards of economic growth. Councils now benefit from nearly £11 billion under the scheme, which should deliver a £10 billion boost to national GDP by 2020. If we meet, we can discuss these matters in more detail.