Local Government Funding: Rural Areas

Norman Lamb Excerpts

Monday 11th January 2016 Commons Chamber

[Graham Stuart]

My right hon. Friend is right. This story can be found in places right across the country, yet this inequity continues year after year. That is why so many colleagues are in their places to talk about it today.

In order to meet the shortfall in grant, of course, rural councils had to respond in the only way they could—and that was, in the past, by increasing their council tax rates. That is why the council tax base is much higher in rural areas, and modest homes in the East Riding of Yorkshire in my constituency can pay higher council tax than is paid on a £1 million property in Westminster. Under the Government’s proposed local government settlement, however, those higher taxes are being used to justify a further shift in support from rural to urban.

[Norman Lamb (North Norfolk) (LD)]

I appreciate the hon. Gentleman’s efforts in pursuing this matter and securing the debate. Does he share my view that the impact on social care in rural areas is particularly acute? Large travelling distances, combined with the increase in the minimum wage, increase costs further. Does he share my concern that many social care providers are thinking of withdrawing from the market because they cannot make ends meet?

[Graham Stuart]

My right hon. Friend is right to say that. Not only are residents in rural areas poorer on average than those in urban areas, but it costs more to deliver services there, they have to pay higher council tax and they are also older, with all the costs that go with it—driving social care. Again and again across government and across our society, we hear about the pressures that will result from having to deal with an ageing population, yet it is rural areas that have the eldest population. However, Government Departments show no recognition of the additional costs of age, as reflected in the demographics of rural areas.