Local Government Finance

Richard Foord Excerpts

Wednesday 7th February 2024 Commons Chamber

[Sarah Dyke (Somerton and Frome) (LD)]

I was pleased to debate local government finances in Somerset with the hon. Member for West Dorset (Chris Loder) at the beginning of the debate, but it would have been better if some of his Somerset colleagues had been here to do that with me.

It is easy to criticise local government and burden it with blame, but let us face it: it is the perfect scapegoat to distract us from the real-terms cuts inflicted by this Tory Government. I am proud to be an active Somerset councillor, and have had the pleasure and honour of serving my local community both on Somerset Council and in this House. I know councillors of all colours are working hard in Somerset to deliver for their residents, but the funding system for local government is simply broken. I am desperately concerned for the future of local government; it needs major reform.

I have spoken on multiple occasions about the issues facing Somerset Council, because of the national problems facing all local government. The council had to declare a financial emergency just last year owing to a £100 million funding gap for 2024-25. The Government have offered a £5 million payment to try to plug the gap, but that is woefully inadequate. While the additional support through the financial settlement is welcome, it is simply not enough. I thank the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for North Dorset (Simon Hoare), for engaging with me and the council; that engagement has been very much appreciated across the county. However, unless the Government can provide substantially greater funds, this will not work.

[Richard Foord (Tiverton and Honiton) (LD)]

Will my hon. Friend give way?

[Sarah Dyke]

Of course.

--- Later in debate ---

[Simon Hoare]

The hon. Gentleman and I have discussed this on many occasions, and I know he broadly agrees with me on this point. Local council chief executives and leaders would have come at the Department with pitchforks and flaming torches if we had dumped a 200-page consultation document on their desks at a time when they were rallying to support their communities during the covid crisis.

This year, as last year, the Government have rightly set our focus on stability, certainty and security. I believe this local government finance settlement delivers on all three.

[Richard Foord]

Will the Minister give way?

[Simon Hoare]

No. If the hon. Gentleman is not here for the opening, he cannot take part in the summing up. He has tried that trick before, and it did not work then.

As we heard from the hon. Members for North Shropshire (Helen Morgan), for Sheffield South East and for Blaydon, some of these issues came through in the consultation and in the engagement: support for special educational needs; a long-term view of adult social care; and reform to the funding formula, which so many hon. and right hon. Members have referenced. A reformed funding formula would provide stability and security to our local authorities, and the best way to deliver it is through cross-party working. That is what this House owes them.

When I was asked to take on this job, I had no idea of the complexity and time required to arrive at a local government finance settlement. I thank all colleagues who came along to take part in my parliamentary engagement, which was hugely helpful. I pay tribute to my private office and to officials in the Department—long hours, huge work. I pay particular tribute, not least because her note tells me I have to, to Victoria Peace for all her hard work, as well as to Kate, Nico and others. It has truly been a team effort.

I also thank the Chancellor of the Exchequer and the Prime Minister for listening to the case that the Secretary of State and I took to them on revising the formula. We said that we would listen, we did and we have acted. Those are the hallmarks of prudent, listening, caring, one-nation conservativism, and it is writ large in this local government finance settlement.

I also pay tribute, as so many others have, to the work that councillors and council officers do, day in and day out, to deliver to make the lives of some of the most vulnerable people in our society more bearable and a little better, and to create a sense of place in which people wish to live. We salute all of them. Are all of them brilliant? Of course not, but not all of us are brilliant either. But I know that, day in and day out, they focus on doing their best.

I have been called many things, but the hon. Member for Sheffield South East called me “genuinely helpful”. My hon. Friend the Member for West Dorset (Chris Loder) called me “the great rural tsar” and a “knight in shining armour”. And my hon. Friend the Member for St Austell and Newquay (Steve Double) called me a “warrior” for rural councils. I am grateful for those comments, and I look forward to their being carved into my headstone in due course.