Local Government Finance

Michael Tomlinson Excerpts

Wednesday 5th February 2020 Commons Chamber

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

It is a pleasure to follow the hon. Member for Westmorland and Lonsdale (Tim Farron), whom I always listen to with care, and the several maiden speeches from both sides of the House, especially those of my hon. Friends the Members for Keighley (Robbie Moore), for Orpington (Mr Bacon) and for North Norfolk (Duncan Baker). It is great to hear such strong voices on the Government Benches, and I look forward to further contributions.

Local government in Dorset has changed significantly over the past year, with nine councils merging into two in the run-up to the elections. My constituency is one of only two that covers both new unitary authorities. Of course, there were many reasons for the changes, but one of the main drivers was financial. Back-office savings, the rationalisation of office space, and a reduction in the number of senior staff have been painful but necessary decisions to ensure that frontline services can continue to be maintained.

Despite the changes, both Dorset Council and BCP Council remain in a challenging financial position. Additional funding is welcome, of course—I always say that—and it has added to both councils’ spending power. However, that is often offset by greater demands, not least in relation to adult social care and children’s services. Dorset has many advantages. It is a great place to live and work, but is also a great place to retire to, with an above average 17% of the population over the age of 70. That proportion is growing, so we are facing adult social care challenges. Social care is by far the largest part of the budget, placing considerable strain on our local councils.

I therefore welcome the Government’s promise to produce a social care Green Paper. A long-term solution is absolutely required, and I particularly welcome the recognition in the Prime Minister’s amendment this afternoon of

“the pressures on adult and children’s social care”

and the move to a fairer funding formula. Much has been said by Opposition Members about the fairer funding formula, but it will be absolutely crucial for residents in Mid Dorset and North Poole. We need a fairer settlement that reflects the challenges of living in rural areas. My hon. Friend the Member for St Austell and Newquay (Steve Double) made an intervention at the outset of the debate noting that deprivation was not only found in inner-city areas, because it is found in all our constituencies and in rural areas.

However, despite what we have heard from Opposition Members, the majority of the increases in council funding this year have been seen in urban areas. Once again, shire counties have received comparatively less. The shadow Minister, the hon. Member for Denton and Reddish (Andrew Gwynne), refused to take my intervention earlier, so I will tell him now—I am pleased to see him still in his place—that rural and shire counties receive an average of £240 per person. That is the point that my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) was making in several interventions, but he is better than I am at intervening. Rural and shire counties receive £240 per person compared with £419 for metro- politan and city authorities and £601 for inner-London authorities. That is why it is crucial that the Government grapple with this issue in their fair funding review, as I know that they are doing.

[Preet Kaur Gill]

Does the hon. Gentleman agree that councils of all political persuasions are already, as he said, in severe financial trouble following 10 years of savage cuts by the Conservative Government? The Government’s new adult social care funding formula, which will actually see Birmingham lose almost £50 million, will further exacerbate inequalities both within and between councils.

[Michael Tomlinson]

I am grateful for the hon. Lady’s intervention, but I do not accept her point. My point is that we need to look more broadly. The funding given to rural areas is not enough, including in my constituency of Mid Dorset and North Poole. I do not accept or recognise her figures. Indeed, I am sure the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Thornbury and Yate (Luke Hall), will dispute those figures, as the Minister for the Northern Powerhouse and Local Growth did in opening.

My hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) said that our local authorities needed greater security through a longer-term financial settlement. I understand what he says, and he makes a valid point about the need for a one-year settlement, but we need a longer settlement to give councils the greater financial certainty that is required. That will mean they can move on and be more strategic in future, so I welcome what the Northern Powerhouse Minister said in opening.

I hope the Under-Secretary will echo and re-emphasise the importance of this funding and reassure my councils in Dorset and Bournemouth, Christchurch and Poole that he recognises the need for a longer-term financial settlement.

Councils in Dorset have taken the brave and commendable steps to reorganise and to ensure that frontline services are given the greatest priority. Ever-increasing council tax is not a long-term solution, as I know Ministers recognise. I welcome the amendment in the name of the Prime Minister, and I will support it in the Lobby this afternoon.