Public Services: Rural Areas

Sam Rushworth Excerpts

Wednesday 22nd January 2025 Commons Chamber

[Daniel Zeichner]

My hon. Friend and I meet frequently, but I will very happily meet him to hear more about what sounds like an excellent initiative.

I shall turn now to another point raised by my hon. Friend the Member for North Northumberland, which was the importance of education and skills. It is absolutely essential that we ensure sustainable improvements in skills in rural areas, and to do that we are planning to expand our childcare and early years system, drive up standards and modernise the school curriculum. We will also boost rural and agricultural skills by reforming the apprenticeship levy into a growth and skills levy, giving businesses the freedom and flexibility to upskill their workforce. We will also be opening new specialist technical excellence colleges to give rural communities the chance to fit skills to the needs of their local economies and empower rural businesses to play a bigger role in the skills revolution. My hon. Friend also raised, again rightly, the challenges around rural health.

[Sam Rushworth (Bishop Auckland) (Lab)]

People from primary schools in rural areas of my constituency have come to me, and one of the challenges they face is a falling population because of the declining number of jobs. Although they have both fixed and variable costs, they lose per pupil funding as a result, and some of those primary schools are becoming unviable. Does my hon. Friend agree that we need a different funding settlement for schools in rural areas?

[Daniel Zeichner]

Again, my hon. Friend tempts me to rewrite the policies of the Department for Education, but I recognise the problem he highlights. I am pleased about the presumption against the closure of maintained rural schools, but he points to a very important challenge. As we all know, the survival of local schools is key to many communities, so I have sympathy with what he says.

Health was raised by a number of colleagues. We are very aware of the mental health challenges faced in rural areas, which I have discussed with colleagues on a number of occasions. My Department has recently established a new group to look specifically at these issues, because we know it is an important challenge.

Colleagues have also talked about GPs and dentistry, which is one of the issues that consistently came up in rural communities during the run-up to last year’s general election, and it is a key challenge. We know that people in rural areas who need care are often more likely to live far from those facilities, and we are mindful of that challenge. The integrated care system will have a role in designing those services, but it will need to work closely with clinicians and local communities at neighbourhood level.

We are making significant new funding available for local government in 2025-26, which we think will help with some of the wider issues. There is £1.3 billion of new funding in the local government financial settlement, with £600 million to support the most deprived areas, including in shire districts, through the new recovery grant. There is also £233 million of additional funding for homelessness services.

There is a guarantee that no local authority will see a reduction in its core spending power in 2025-26 after taking account of any increase in council tax levels. We believe this will provide the protections required for all authorities, including district councils, to sustain their services between years. Taking into account both the money allocated to councils through the settlement and the extended producer responsibility guarantee, every council will have more to spend on planning and social care services in 2025-26 than in 2024-25. For almost all authorities, we expect that to be a real-terms increase. We are also providing a flat cash funding floor after council tax increases, which means that every council will receive as much in core spending power next year as they received this year, if not more.

This Government recognise the importance of providing accessible, high-quality services across rural communities, and we will continue to do everything in our power to ensure that they are delivered effectively.

Question put and agreed to.