Local Government Funding: Rural Areas

Debate between Peter Heaton-Jones and Sheryll Murray

Monday 11th January 2016 Commons Chamber

[Peter Heaton-Jones (North Devon) (Con)]

I congratulate my hon. Friend the Member for Beverley and Holderness (Graham Stuart) on securing this debate and on the fantastic work he has done in this area, particularly on the Rural Fair Share campaign, of which I am very proud to be a patron.

I will address my remarks principally towards North Devon, but will start with some general comments. We must remember from the outset that we are talking about taxpayers’ money, so it is right that we take careful decisions. I get that. All areas of spending have to be reviewed. The Government are making considerable progress in putting the nation’s finances on a sound footing, compared with what we inherited. I get that too and the people of North Devon also get it.

However, this settlement raises considerable concerns for North Devon. First, the overall grant for North Devon District Council is reducing from £4.9 million this year to £4.18 million in the next. That does not sound like a big figure, but it is a significant reduction for a small local authority. I have met the leader of the council, Councillor Des Brailey, and he has left me in no doubt whatever that he faces some very difficult decisions as a result of the settlement.

I want to pick up on a couple of points that have been made by hon. Members on both sides of the House that are relevant to the challenge faced by North Devon District Council. I am delighted that the hon. Member for Workington (Sue Hayman) is co-sponsoring the debate. It is good that it is a cross-party initiative, although the Liberal Democrats are conspicuous by their absence. None the less, the hon. Lady made a very good point about visitors to her area and mine. North Devon prides itself on being a very popular tourist destination, but we get not a penny more for the extraordinary increase in, in effect, the population of North Devon that occurs for several weeks of the year. This settlement does not take account of that fundamental unfairness.

My hon. Friend the Member for North Dorset (Simon Hoare) made a very good point about areas of deprivation and coastal areas in particular, as did my hon. Friend the Member for South East Cornwall (Mrs Murray). He said that we have areas of coastal deprivation that often go unnoticed. I have invited the Minister to visit Ilfracombe in my constituency. I am sure that his response is in the post. In Ilfracombe, I have one of the most deprived wards in the south-west. That is something that North Devon District Council has to deal with, but this settlement does not allow it to do so.

We must also consider the extra money that the Government give to rural areas such as North Devon. Yes, I am delighted that that is being increased nationally to £65.5 million in the next four years, but it is being back-loaded, not front-loaded, and there will be only marginal benefit to North Devon next year. The total figure is considerably lower than the £130 million increase that was calculated by the Rural Fair Share campaign, and it will simply get us to a standstill—it is considerably less than what is required.

The settlement figure for Devon County Council has also been reduced, which is a worry because that will simply add to the pressures on local services and council tax payers in North Devon. To set a balanced budget for 2016-17, Devon will need to make savings of more than £34 million, on top of savings made in the past five years, which amount to £174 million. That is a huge reduction and a huge challenge for Devon County Council.

The two authorities to which I have referred—North Devon District Council and Devon County Council—are both well-behaved, competent, Conservative-controlled councils. That is the point: councillors and officers are working hard to deliver good services and value for money for the taxpayers of North Devon. The Government should be helping them to do that, although I fear that with this current settlement, they are not doing so.

[Mrs Sheryll Murray]

The system in Devon is slightly different from that in Cornwall because we have a unitary authority and Devon has a two-tier primary authority system. Does my hon. Friend notice that his constituents are having excessive council tax imposed on them by services being offloaded from the district and county authority on to town and parish councils, as is happening in Cornwall?

[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.