Local Government Funding: Rural Areas

Debate between Peter Heaton-Jones and Andrew Bingham

Monday 11th January 2016 Commons Chamber

[Peter Heaton-Jones]

We could happily spend considerable time on the debate about unitary versus multi-tiered authorities, but my focus is to ensure that whatever system we have presents value for money to council tax payers. That is what is being delivered by Conservative-controlled North Devon District Council and Devon County Council, and the Government need to assist them in that.

[Andrew Bingham (High Peak) (Con)]

My hon. Friend makes a great point on behalf of his local councils, which very much mirrors my own experience in High Peak. Almost 10 years ago we entered into a shared service review with Staffordshire Moorlands, thereby saving our council tax payers a lot of money. It was a trailblazing scheme across regions and across the county, yet we have all the problems that my hon. Friend mentions about tourism and we do not even qualify for the rural services delivery grant. We are being kicked twice, and it is making life extremely difficult for what is a prudently and well-run Conservative local council in the High Peak area.

[Peter Heaton-Jones]

My hon. Friend makes a strong point on behalf of his area which, as he says, is mirrored in North Devon.

In 2016-17 some specific grants were included in the funding base for Devon County Council, and if those are excluded to give a more accurate like-for-like comparison, the reduction in grant for that council is 17.4%, compared with an average of 16.6% for the shire counties. Not only do we as a rural area do worse in comparison with urban areas, we are even doing worse in comparison with other rural areas. That seems something of a double whammy for Devon.

At the other end of the local government spectrum, let me echo a point that was ably made by my hon. Friend the Member for North Dorset—he has just retaken his place. He noted how one of his town or parish councils had complained how difficult it was to plan ahead because of the annual “will they or won’t they?” capping saga, and exactly the same point was made to me by Barnstaple Town Council, which has the same horror to face every year. That is stopping it planning ahead and adequately providing the services that it needs to provide, and I urge the Minister to consider that.

There are some beneficial aspects to the settlement. I accept that the rural urban funding gap is gradually closing, and the longer, four-year settlement period is welcome as it will help local authorities considerably with their forward planning. We will not have that worried look at the Advent calendar every December to wonder when the settlement will come and what it will be, and I welcome those two points.