Planning Policy: Traveller Sites

Sarah Dyke Excerpts

Wednesday 11th September 2024 Westminster Hall

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

It is a pleasure to serve under you in the Chair, Dame Siobhain. I thank the hon. Member for Thirsk and Malton (Kevin Hollinrake) for bringing forward this important debate. I have also listened carefully to the other hon. Members who have spoken today, and I appreciate that in some cases there is a misuse of planning. It is clear that we need the system to work better to tackle those attitudes.

I appreciate what the hon. Member for Sheffield Hallam (Olivia Blake) said, in that this is often seen as a difficult matter to deal with. But that should not be the case, and we need to ensure that sites are put in the right place to avoid segregation and isolation. My hon. Friend the Member for Edinburgh West (Christine Jardine) spoke passionately about how we have simply not progressed. Neither community feels represented, and we must seek to change that. The hon. Member for Rugby (John Slinger) spoke about the risk of the GRT community becoming second-class citizens and the need to find appropriate sites to stop the reoccurrence of conflicts. Let us engage with and listen to the GRT community and treat them with respect and dignity. The hon. Member for Bromsgrove (Bradley Thomas) raised his concerns, which I think we all share, about agencies passing the buck and the emergence of tensions.

In the space of a month, I have received correspondence about illegal Traveller sites from concerned constituents in Wincanton and Glastonbury, towns that are at the opposite ends of my constituency. The complaints are a symptom of the fact that Somerset, like most counties in the country, is facing huge challenges in properly supporting our GRT community. Friends, Families and Travellers, a national charity, received a response to its engagement campaign this summer which called for an increase in

“site provision for nomadic people, transient and permanent.”

I do not know if that respondent lives in Somerset but I would not be surprised if they did. Somerset has no transit provisions—none at all.

Members of the Gypsy and Traveller community, like all of us, have to travel across the country to attend funerals and weddings and to see family, but because we have no transit sites, and therefore nowhere for them to legally stay for short periods, the only way they can stop when passing through our sizeable county of Somerset is in the form of an unauthorised encampment. We only need to look at my casework to see that such encampments inflame tensions between my constituents and Travellers—some of whom are, of course, my constituents—and reinforce dangerous stereotypes.

With 91% of English local authorities having some form of GRT presence, we are unfortunately not alone in that, so it is alarming to see the trend growing nationally, either because local authorities are selling off sites or because they simply cannot afford to maintain them. I worry that we could soon find ourselves with huge distances between transit sites, which would make it impossible for Travellers to legally travel. That also harms our relationship with the GRT community, because then the only response that local authorities are left with is enforcement.

Not only do we need more transit sites; we need permanent pitches where members of the GRT community can stay longer than just three months. There are well-known, documented and dangerous knock-on effects of not providing the community with stability. While the community is naturally transient, it needs access to a permanent base. Without a permanent pitch or a brick and mortar address, it can be a struggle to access mental health support and GP appointments, which forces more people to use our overburdened accident and emergency services to access healthcare. It is tragic, but not surprising, that life expectancy for members of the GRT community is 10 to 25 years lower than for the general population and that the suicide rate for Traveller men is seven times higher than for settled men. We also know about the reduced attainment rates for those in education, with only 18% in GRT communities meeting the expected standard in their SATs last year.

Councils could avoid huge additional costs if they did not have to waste officer time dealing with complaints and cleaning up encampments. The case for providing permanent pitches is clear, and local authorities have a quota for delivering Traveller provision, but there is nowhere for them to obtain funding. Funding has recently taken the form of ad hoc grants that are too small and oversubscribed. If we expect local authorities to be able to maintain a constant and consistent number of sites, we must provide them with consistent and adequate funding. The Liberal Democrat manifesto pledged to ensure that all development has appropriate infrastructure, services and amenities in place, by integrating infrastructure and public service delivery into the planning process. This should also include the development of permanent pitches.

I was recently elected vice-chair of the all-party parliamentary group on Gypsies, Travellers and Roma, which wrote to the then Government in the last Parliament to urge them to increase site provision. That Government failed to deliver sites, but the new Government could. The Liberal Democrats have a strong record of supporting the GRT community, but we want to work with colleagues to bring about an end to these systemic problems.

[Kevin Hollinrake]

The hon. Lady is making a very valid and interesting point, but she seems to think that it was central Government’s responsibility to provide Traveller sites—I think that is what she said.

[Sarah Dyke]

indicated dissent.

[Kevin Hollinrake]

Okay, I have misunderstood. Perhaps she will clarify that she accepts that it is the local planning authority’s responsibility to provide these sites.

[Sarah Dyke]

I thank the hon. Gentleman for his intervention; he misunderstands. I am fully aware that it is local authorities that provide Traveller sites, but the funding is not there for them to provide it. That is my case. As we know, over and over again, many local authorities find themselves on the brink. They are under such pressure at the moment. The crucial point is that they are unable to provide the resources within their remit. That is what was lacking in the last Parliament, and that is what we need to see from this new Government, to ensure that local authorities have the resources and the capabilities they need to provide sites for our Traveller community.

It was confirmed in the King’s Speech that this Government intend to reform our planning system. When they do so, they must not treat Gypsy and Traveller provision as an afterthought to bricks and mortar housing. Looking after this community is a housing requirement, not an add-on that can be addressed when there is more time and money. I would like the Government to introduce a statutory duty to provide sites, along with proper funding measures. With a reasonable approach to location and funding, this could be the single most transformative measure for Gypsies and Travellers in England. Our planning regulations and guidance are not fit to serve the community. The guidance dictates what local authorities need to deliver on a site, but it is not properly delivering that provision, which leads to the GRT community being viewed negatively and the community feeling less safe. The Government should make updating those documents a priority.

Finally, not all these problems can be solved with reforms or increased funding. The narrative from the previous Government was not constructive and made it challenging for local authorities to build meaningful dialogue. Over the last decade, Somerset and much of the rest of the country has seen a reduction in publicly owned sites, fewer community liaison officer roles in local authorities, a lack of new private sites, an increase in unauthorised encampments, a reduction in funding for site development, and political inertia slowing down pitch development. We need this new Government to provide real leadership and ensure that the needs of the Gypsy, Roma and Traveller community are met. We should engage with and treat our Gypsy, Roma and Traveller community with respect and dignity, and provide them with the sites they need to live their lives.

Oral Answers to Questions

Sarah Dyke Excerpts

Monday 2nd September 2024 Commons Chamber

[Alex Norris]

The hon. Gentleman knows whereof he speaks. This is another question that we are addressing up and down the country. We know that banking facilities bring people into towns and villages, and give rise to a virtuous circle. We have committed ourselves to providing 350 new banking hubs and, as the hon. Gentleman suggested, we are working with Treasury colleagues on their delivery.

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

The outdated business rates system has left some market towns, such as Wincanton in my constituency, with empty premises on the high streets, damaging communities’ sense of pride and preventing councils from benefiting on the back of flourishing town centres. Will the Minister work with his Treasury colleagues to boost small businesses and regenerate high streets by reforming damaging business rates?

[Alex Norris]

That is a commitment that we made at the previous election, and we intend to deliver on it.

Gypsy and Traveller Sites

Sarah Dyke Excerpts

Wednesday 15th May 2024 Westminster Hall

[Mr Hollobone]

As always, my right hon. Friend is absolutely spot on. There is an unfairness in the system that penalises authorities that stick to the rules. They then find that they have to make even greater provision for more and more Gypsy and Traveller sites.

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

First, I should declare an interest as a serving Somerset councillor. Somerset Council, like all local authorities, has the power to take enforcement action where appropriate. However, decisions that were made by the previous, Conservative administration in Somerset have left the county without any appropriate transit sites. Regardless of the intent of the council, the costs involved in developing those transit sites, like any other planning development and homebuilding, are now that much greater. Does the hon. Member agree that local authorities need more provision to take action when necessary?

[Mr Hollobone]

If the hon. Lady is talking about temporary Traveller stopping sites, I highlighted those in my opening remarks. Under the present law, local authorities are encouraged to provide temporary stopping sites so that Gypsies and Travellers who have temporary unauthorised encampments can be moved out of a local authority area only if such transit provision has been made. I would argue that that should be unnecessary, and that they should be required to move out of the area in any case, just like anyone in the settled community if they were parked up temporarily on somebody else’s land.

Oral Answers to Questions

Sarah Dyke Excerpts

Monday 22nd April 2024 Commons Chamber

[Simon Hoare]

Second most beautiful, I remind my hon. Friend. He makes an important point, representing as he does his constituents and the wider county of Cornwall, and an interesting suggestion. Strong points sit behind his argument. I would be delighted to meet him to discuss that further, but he makes good points and gives me food for thought.

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

The cost of delivering services in Somerset is rising, with care costs rising by 47% between 2022 and 2023, yet urban councils receive about 38% more Government funding spending power per head than rural councils. What steps is the Department taking to address that inequality and help rural councils to deliver vital public services?

[Simon Hoare]

As the hon. Lady will know, the rural services delivery grant tries to reflect that as well, but if only the Lib Dem leadership of her council had got on—as Dorset did—and delivered the benefits of going unitary, rather than fiddling while Rome burns, her situation might be a little better.

Planning Reform

Sarah Dyke Excerpts

Wednesday 13th March 2024 Westminster Hall

[Sir Simon Clarke]

My hon. Friend is absolutely right. I have seen that in my constituency, where a new GP surgery in Nunthorpe, a suburb in the south of the town, has changed people’s attitudes to new homes coming in. However, we need to institutionalise that sort of offer to residents. The planning system must deliver a worthwhile settlement that gives residents a reason to say yes to extra homes.

The Government have legislated for one important potential solution: community land auctions. CLAs allow local government to see a substantial share of the profits from new development, enabling local authorities to capture the uplift in value that comes from planning permission being granted. The value of agricultural land can rise by up to 80 or 100 times. The council getting their fair share of that increase in the underlying land value allows them to deliver benefits to local people, which they can then spend on the new infrastructure that my hon. Friend rightly says is essential to make new developments viable. Residents then get to see their fair share of the upside, too, while the country sees homes unlocked with more community support. I hope to see the Government press on and make the most of the Levelling-up and Regeneration Act 2023 by getting trials of CLAs moving quickly, because they have huge potential.

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

“Decisions and policies are most trusted when the people making them are representatives of the people affected by them”—that quote is from a civil service training manual. Does the right hon. Member agree that we need to ensure that localism remains in the planning process?

[Sir Simon Clarke]

I think localism as a principle of good Government is very important. I am a strong believer in the mayoral devolution of the kind that the Government have introduced in recent years. I will come to the hon. Lady’s question about how we can best address the balance between local and national Government. Local government can be a very good thing, but it can also become an obstacle to actually building homes anywhere at all, which is something we need to try to balance.

--- Later in debate ---

[Sarah Dyke]

I would not be a Somerset representative if I did not mention the phosphate levels on the Somerset levels and moors Ramsar catchment area, caused by phosphates entering the water system. It is stymieing the building of new homes in parts of Somerset, so we no longer have that five-year housing land supply. That means that the local plans are effectively suspended, and the local planning authority is forced to approve inappropriate new housing development in areas where it would normally be refused. Does the right hon. Gentleman agree that in those circumstances, the local planning authority should be afforded better protection from the five-year housing land supply requirements?

[Sir Simon Clarke]

I confess that I think the issues surrounding phosphate and nutrient neutrality need to be addressed—indeed, I commented on this with my right hon. Friend the Member for Newark (Robert Jenrick) this morning—by looking at the underlying causes of the problems and allowing mitigation measures to be put in place and counted forward so that homes can still be built where appropriate. That would mean that we do not end up in the situation where authorities either commission homes where they are not appropriate or do not commission homes at all. We need to resolve the Gordian knot of nutrient neutrality, because it is an irrational obstacle to building new homes. It is something that we have created through policy, and we need to resolve it through policy.

The Government have rightly said that development plans ought to prioritise building in cities. I welcome the exciting plans set out by my right hon. Friend the Secretary of State for major new developments in east London and Cambridge. That is precisely the kind of visionary development that we need and should welcome, and I think it will command broad support. Demand is obviously highest for homes close to city centres, where jobs are located, so those new homes often contribute disproportionately to economic growth. Building in cities also means that less money is required to support the infrastructure needs of new residents, and it is environmentally friendlier. Urban, dense communities inherently encourage lower usage of energy, because living in a smaller space means there is less to heat, and living in an apartment building means that there is natural insulation from other units, and so on.

Estate regeneration is also a win-win way to add more housing in cities and to deliver social justice. Too often, our post-war council estates are impractical and prohibitively expensive to rehabilitate. However, redeveloping an estate with new private housing that helps to cross-subsidise a wider improvement and redevelopment of social housing can result in a plan to deliver a really good outcome for all residents. Allowing tenants to vote on these plans would ensure that their rights were protected while providing new and renovated homes of a kind that is desperately needed.

However, although the brownfield-first policy is sensible, a brownfield-only policy cannot be, and no debate on planning would be complete without my referring to the completely uncontroversial subject of the green belt. The green belt was intended to prevent sprawl, but I would submit that it has done the opposite. Today’s green belt, which is three times larger than London itself, causes a leapfrog effect, whereby individuals wanting to live in London end up settling in distant commuter towns instead, which increases transportation and climate costs. Parts of the green belt—the disused car parks, the petrol stations and the dreary wastelands that make up what the right hon. and learned Leader of the Opposition rightly calls “the grey belt”—are far from the natural paradise that some would have us believe.

The green belt, in truth, has the best spin doctors around, encouraging a widespread misapprehension that it is all beautiful green land, when in fact 11% of the UK’s total brownfield land lies within the green belt.

Local Government Finance

Sarah Dyke Excerpts

Wednesday 7th February 2024 Commons Chamber

[Chris Loder (West Dorset) (Con)]

It is a pleasure to contribute to this debate, which for me is the highlight of the parliamentary calendar. Relentlessly, year after year, I have contributed to the debate with great fondness. Last year, I remember vividly the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend and next-door neighbour the Member for North Dorset (Simon Hoare), advocating, from the Back Benches, for a great rural tsar. Of course, nowadays we have the great rural tsar sat on the Front Bench; I am pleased about that. I am also pleased that the debate has three hours of protected time, which is valuable. None the less, I will try not to take up too much time, Mr Deputy Speaker.

Each year, I stand up in this place to make the case not just for rural West Dorset, and Dorset as a whole, but rural Britain, in what I believe are some of our most important discussions and decisions about enabling the capability of local government. Most years, I have stood here and protested that we in Dorset have been in need of our fair share of government finances; indeed, in many previous years, we have not received that. But today is not D-day. Today is S-day, because my hon. Friend and neighbour—knight in shining armour that he is—is charging over Bulbarrow hill and through the Chalke valleys to Dorset Council in Dorchester, to deliver a £4 million boost to its finances. That is to be greatly welcomed. My other neighbour, my hon. Friend the Member for South Dorset (Richard Drax), who cannot be with us as he is away on parliamentary business with the Defence Committee, has asked me to reflect his views, so that my hon. Friend the Minister understands full well that we very much appreciate this in Dorset, after many years of campaigning for a greater and fairer share.

However, it is important to note that we still need to address the fundamental structural issues that we face in local government funding. I recognise that that is a vast task, which will take considerable work. I hope that, in winding up, my hon. Friend the Minister can give not just me but a number of colleagues who are in their places real confidence that the Government intend to achieve that in relatively short order, and that we will ensure that a fairer share of taxpayers’ money is allocated to where it is required.

The £110 million through the rural services delivery grant is much welcomed. That funding of up to £3.2 million for some areas—including Dorset—is much better, but is that enough to deal with the issues we have to face? From discussions that I have had in the House before the debate, I have a real sense that it is not. The additional £1.5 billion for social care is enormously welcome. A third of the community that I represent in West Dorset is over 65, so it has additional social care requirements. Are we in Dorset really getting our fair share of £1.5 billion, given that we are talking about a few million pounds? That is a question for us to ask.

In the wider context of making the case for rural Britain, I remind my hon. Friend and neighbour the Minister, and the Minister for Housing, Planning and Building Safety, that we have had high-energy debates, it is fair to say, about local government finances with both of them. I would like to reiterate some of the unfairness that remains in the “urban versus rural financing” debate. Rural areas still receive some 59% less per head in settlement funding than their urban counterparts; in real terms, that is about £111. Rural residents will also pay on average 20% per head more in council tax than their urban counterparts—although we should probably take Somerset to one side in that assumption. Rural residents receive on average 13% less per head in social care support overall than residents of urban areas, which is very important when it comes to providing that care in constituencies such as mine and those of my hon. Friends.

West Dorset constituency, which I am proud to represent, has an enormous county boundary with the county of Somerset. Many of my constituents use services and facilities in Somerset, and vice versa. It is fair to say that over the past month, many of my constituents and people in Somerset have looked with absolute horror at how the proposed council tax increases will affect them. For the benefit of the House, I would like to clarify the extent of those increases in real terms. Those living Yeovil can expect a 90% increase in the town council precept, while those living in Taunton, the county town of Somerset, can expect a 200% increase. In real terms, that is an increase of between £109 and £277 per annum in the town council precept alone.

I am well aware of this matter because a Somerset councillor, a Liberal Democrat, works in my constituency and contributes frequently to the Liberal Democrat leaflets that are shared in West Dorset. I should say that he is the head of the Somerset Council audit committee, of all committees; I can confirm that his mantra is “raise taxes and cut services”, which is definitely what is happening in Somerset. In November 2022, the Somerset Liberal Democrats said that they needed an additional £35 million because of a financial difficulty that they had experienced. There was no reporting of any finances to the council for five months, and then, all of a sudden, out of nowhere, came a black hole of £100 million.

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

I am a proud serving Somerset councillor and am fully aware of the issues Somerset is facing. However, those issues have occurred not just over the last nine months, under the new Somerset Council; they have been very long drawn out. Indeed, between 2010 and 2016, Somerset faced one of the longest council tax freezes—I think it was the longest for any council across the country—under the last Conservative administration, which led to huge pressures on funding in Somerset. Indeed, under Conservative administration, the council was nearly drawn into bankruptcy in 2019 due to pressures on adult social care. Would the hon. Member agree that the issue is not a party political stance, as he is trying to make it, but the legacy left by a previous Tory administration? The issues that we face in local government go across all colours.

[Chris Loder]

I thank the hon. Lady very much for her intervention. She and I are frequently in Westminster Hall debating these matters with great passion and vigour. I know that she feels as strongly as I do about these matters, but it will probably come as no surprise to her to hear that I do not agree with her conclusion. Previous Conservative administrations who ran Somerset Council left a considerable legacy in terms of reserves. Since the Liberal Democrat Council was elected and started serving last year, a number of decisions have been made across the board that have ended up in the lap of council tax payers in Somerset.I am alarmed about that, because ahead of the Dorset local elections, a number of constituents in West Dorset look with great horror at what is happening in Somerset, and wonder what is truly the case.

[Sarah Dyke]

rose—

[Chris Loder]

I have not quite finished replying to the hon. Lady’s previous intervention. I would like further to put into context the contrast between the finances of Somerset and Dorset. Last year, we in Dorset received just £700,000 in revenue support grants; Somerset received £8 million. Our social care grant last year was £22 million; in Somerset, it was £39 million. The high needs block funding was just £48 million for Dorset; it was £74 million for Somerset. The schools block funding was £76 million for Dorset, but £122 million for Somerset. I could go on, but I will not. There is an enormous contrast, which has happened in relatively short order. That is what happens when the Liberal Democrats run the council in Somerset, compared with a long-standing and financially well-run Conservative council in Dorset.

[Sarah Dyke]

I thank the hon. Member for allowing me to intervene again. He is making some unfair points that need some context. As a Dorset Member, he will know that the council tax in Dorset is vastly higher. In the local government reform back in the 1970s, Somerset was left with most of the rural county, and following the 1991 council tax change most of the higher banding was taken into Bath and Avon. We have fewer properties in the higher banded rates, so the council does not generate as much in council tax. He says that that is an issue for the Liberal Democrats, but he should remember that we are delivering on a plan to change to a unitary council that was implemented by the Conservative Government against the will of people in Somerset. We have delivered more than half the £18.4 million of savings within nine months, when the full savings were expected to be delivered within three years. The Liberal Democrats in Somerset are delivering.

[Chris Loder]

The reality is that the Liberal Democrats are not delivering on the Conservative legacy. That is clear for all to see, especially those who live in Yeovil and Taunton. It will hurt people financially, as they will see hundreds of pounds extra on their council tax because of having a Liberal Democrat administration rather than a Conservative one.

My constituency neighbour, my hon. Friend the Member for North Dorset, is saving the people of Somerset from a further 10% council tax hike that the Liberal Democrats want to pile on them. I am very grateful to him, as are a number of colleagues who are not able to be here, for saying that the Liberal Democrats have to be held accountable. They have to find solutions and carry through on what was a very good proposal several years ago. I hope that the people of Somerset will benefit from his good work and, in the mid to longer term, the people of Dorset will benefit, too.

--- Later in debate ---

[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.

[Mr Deputy Speaker (Sir Roger Gale)]

Order. The hon. Member for Tiverton and Honiton (Richard Foord) has been in the Chamber for about five minutes. I do not expect hon. Members to walk into the Chamber and seek to support colleagues through an intervention.

[Sarah Dyke]

We need fundamental change to the way we fund local government. Across the country, we have an ageing population; in Somerset specifically, it is forecast that the 75-plus age group will double over the next 25 years. The demands of adult social care are becoming more complex and the costs are rising. We can no longer fund such an important and expensive service through council tax based on house prices from more than 30 years ago.

The issue is particularly difficult in Somerset. Historically low council tax rates and a damaging six-year freeze under the previous Conservative administration have left the band D rates in Somerset almost £260 lower than in its contiguous neighbour, Dorset. The rurality of Somerset also poses specific challenges because it costs more to provide services in rural areas. The council just cannot make enough money locally to fund adult social care. When I spoke recently to the leaders of Somerset Council, they described the situation as grim. They have to explain to residents why they will be paying more in council tax but receiving less, as cuts to discretionary services are being considered.

This is a nationwide issue that requires a nationwide solution. Nine councils have essentially gone bust since 2018, and the recent report by the Levelling Up, Housing and Communities Committee portrayed the critical situation facing local government. I am thankful to the Committee for its report, which recommended urgent reform to the funding of local authorities. I know that many of my colleagues in local government share those concerns. Some think it is now impossible to solve the crisis in local government through local funding.

I want to take this opportunity to highlight what our future could look like if we fail to reform local government, provide both statutory and discretionary services and look after the communities that we hold dear. Our communities will be left with high streets full of boarded-up businesses as the outdated business rates system puts pressure on entrepreneurs without adequately funding councils. Our fields will be littered with household waste from fly-tipping as councils shut down recycling centres, our streets overflowing with rubbish from uncollected bins. Our town centres will be bereft of quality libraries, and our roads full of even more potholes. As councils struggle more year on year to fund adult and children’s social care, SEND and housing, those services will undoubtedly deteriorate. Much of what I have mentioned is already a reality for millions around the country—it is simply terrifying to think how much worse it could get.

Council leaders have told me that we need a long-term solution, but politics is a short-term game. The Government have been reluctant to approach this issue seriously with a long-term plan, as evidenced by their unwillingness to follow the recommendations of the Levelling Up, Housing and Communities Committee and to publish a 10-year plan to tackle the long-term funding of adult social care.

I conclude by calling for cross-party unity to work together to solve this issue, which we must do for our communities. I know that councillors of all colours want to continue to provide the best level of services for their residents, and that councils of all colours are aware of the specific challenges they face. We must ensure that councils are adequately funded in the long term so that essential reforms are realised.

[Chris Loder]

I thank the hon. Lady for giving way. I appreciate the point she makes and agree with much of what she says. I just wanted to briefly say—

[Mr Deputy Speaker (Sir Roger Gale)]

Are we saying that the hon. Lady had sat down?

[Sarah Dyke]

indicated assent.

[Mr Deputy Speaker]

In that case, you cannot possibly have an intervention. I call Peter Aldous.

Somerset Council: Funding and Governance

Sarah Dyke Excerpts

Tuesday 30th January 2024 Westminster Hall

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

It is an honour to serve under your chairship, Sir Mark. I thank the hon. Member for Yeovil (Mr Fysh) for securing this really important debate. I agree with him on many of his observations about our wonderful county that is Somerset and, indeed, the opportunities that it offers.

Local authorities exist to provide crucial frontline services to their residents. Some 63% of Somerset Council’s budget is spent on children and adults who need council care, but the stark reality is that the funding model is broken. As a proudly active Somerset councillor, I have seen the situation at first hand. The Government have decimated council finances and local communities are paying the price. This is a national problem that requires a national solution; it is not specific to Somerset.

Somerset Council has declared a financial emergency. It did so late last year because of the significant pressures on its finances due to sky-high inflation, spiralling costs of providing services, especially in social care, and a broken system for the funding of local government.

The council has been completely transparent about the measures that it has taken to address the £100 million funding gap for next year and will do what is necessary to continue to provide those essential services to its residents. I know that most of Somerset’s MPs have met Councillor Bill Revans and the Somerset Council team to learn more about the financial emergency, but sadly the hon. Member for Yeovil has not yet been able to find time to do so. However, speaking to the council’s leader this morning, I found that the offer of a meeting still stands, and I would be happy to join him if he wishes to meet Councillor Revans.

The hon. Member will be aware that some of the issues facing the current administration are the legacy of the previous Conservative council. Vesting day for Somerset Council, the new unitary council, was on 1 April 2023. The previous administration’s One Somerset business case stated now that the seemingly meagre £18.4 million-worth of savings would be realised after three years, not within nine months of forming a new council. The previous administration was guilty of irresponsible fiscal decisions. Six years of council tax freezes from 2010 reduced income from council tax, a move that saw a minimum shortfall of £24 million per year and delivered a total cut to services of £150 million.

During this period, central Government reduced the council’s revenue support grant, leaving councils more dependent on council tax and business rates. In 2018, the council was close to bankruptcy, which is why Somerset turned to the Liberal Democrats to sort out the mess.

It is important to note that Somerset has historically low council tax rates, compared with its contiguous councils, such as Dorset and Wiltshire. Somerset lost many of the higher-banded homes in Bristol and Bath areas to Avon in the 1974 reorganisation, and council tax then was set low in 1993 against the national average, all while the council tax itself is still based on the 1991 house values. This funding model is clearly unfit for purpose, and I do not believe that anyone would design a system like that now. Let me just add that there are now 18,000 homes with planning permission in Somerset caught in a moratorium due to the phosphates issue, which obviously has an impact on income that we would possibly then be able to draw down in council tax.

Where council tax income is lower, the need in the population is generally higher. Somerset is a rural county with an ageing population. The 75-plus age group is expected to double over the next 25 years. The cost of care in Somerset rose by 47% between 2022 and 2023, and the number of people needing more care is rising. That equates to a £70 million increase in council costs. There is an elephant in the room almost identical in size to the cost of living crisis that people face right now: fair funding from the Government to allow councils to get the basics right and give local people a fair deal.

It costs more to deliver services in rural areas, and the Government recognised that by altering the funding formula in 2013-14. However, due to damping, only 25% of the new benefit has been received by rural councils. Support from the Government does not match the increased cost, and the cost of years of underinvestment is now being felt by councils across the country.

Every single council bar the Greater London Authority is expected to experience a real-terms cut of at least 6.4% in 2024-25. That means that there will be a real-terms shortfall of £5.75 billion in council finances compared with 2016-17. The Government failed to get a grip on the situation early and now they are scrambling at the last minute to try to avoid a situation in which more local authorities go bankrupt.

Hon. Members from across the political spectrum have demanded action from the Government. Recently, I was pleased to join colleagues from across the aisle, including the hon. Member for Bridgwater and West Somerset (Mr Liddell-Grainger), in signing a letter that called for urgent additional funding for local government.

The previous Conservative leader of Somerset County Council, as it was, also previously called out this Government for leaving needs in social care unmet, and advocated for immediate investment. I was glad to see that the Government had listened to those pleas, but the extra funding announced last week is simply inadequate to quell the oncoming costs. It is like a rugby team converting a penalty in the 81st minute when they needed to score a try to prevent a crushing defeat.

We are all seeing councils that are close to the cliff edge; unfortunately, some have tipped over that edge. The situation is hurting residents and communities. I urge the Government to provide more funding to support councils as a matter of urgency, while allowing them increased powers to deliver for their communities and to reform business rates to boost local economies. The Liberal Democrats would provide additional funding by reversing tax cuts for the big banks, which could raise £18 billion over five years. We would also look at implementing a proper windfall tax on the oil and gas giants, and we would collect more of the £36 billion of tax that goes uncollected every year.

I have experienced—indeed, I continue to experience—the privilege of working in local government. I have seen the impact that local government can have on our communities and I am determined to defend it, but we need a Government to listen and to help turn the tide against this crushing wave.

Revised National Planning Framework

Sarah Dyke Excerpts

Tuesday 23rd January 2024 Commons Chamber

[Dame Maria Miller (Basingstoke) (Con)]

I am grateful for having secured this debate, and even more grateful that the Minister for Housing, Planning and Building Safety is here to respond. In December, the Government announced significant changes to their house building planning policy, giving new powers and freedoms to local planning authorities, such as mine in Basingstoke and Deane, through changes to the national planning policy framework to vary their planned house building numbers away from the standard method, among other things. The Secretary of State rightfully attached to these new powers and freedoms a single, clear and unambiguous condition:

“With these changes secure, there is now an added responsibility on local government to deliver.”

That responsibility on local planning authorities to deliver at their own plans is what I will focus on today. For too many years, some planning authorities have relied on Government for their house building figures, choosing the path of least resistance and doing what the standard formula told them, in the absence of having asked council officials to collect evidence, or perhaps for fear of being challenged if they actually challenged the standard method and had to allocate more people to their planning departments. However, those days are over. Just a month after these significant changes, many local authorities will still be digesting what they mean for them. I hope that this debate and the Minister’s response will help to explain the breadth of these new freedoms to challenge and the new responsibilities that local authorities have.

My local authority, Basingstoke and Deane, published papers to approve its updated local plan, with new planned levels of house building, for public consultation on exactly the same day as the Government’s new policy changes. I am sure that behind the scenes officials and elected councillors will be agreeing how their proposals need to change in the light of the Government’s new policies, which so readily could deal with the concerns about high levels of house building expressed by thousands of my constituents. At this point, let me pay particular tribute to the residents’ groups in my constituency, particularly Clean Air Green Environment, or CAGE; and Save Our Lodden Valley Environment, or SOLVE. They have worked so hard to make the case to cut house building in our borough over many years. These new Government policies are a powerful tool to help achieve that aim.

The Secretary of State’s statement makes it clear that the extensive changes that have been made to the NPPF must be taken into account by the planning inspectors. Of course, all the changes apply to all of the country, but certain changes are more important to certain local authorities. For Basingstoke, which, as the Minister knows, has built homes for more than 150,000 people since 1960, the most relevant change is the one to the standard assessment model—the formula used to determine house building rates. It is now an advisory starting point, not a mandatory end point.

In places such as Basingstoke, where we have a unique set of factors, the standard method has generated house building numbers in the past that are both inappropriate and unachievable. As a result of the changes that the Minister introduced, the local authority is now able to consider varying more widely from that standard assessment, having looked at “exceptional circumstances”, to ensure that house building in our community better reflects the nuance of our individual situation.

I have been campaigning since I was first elected—I think you can remember that, Mr Deputy Speaker—for house building that reflects local need, not a formula. I did so when I called for “No more tower blocks and gridlock” in the 2005 election; in my first Westminster Hall debate; and when working with local environmental groups and residents’ groups. It is what we advocated for at the last planning inspector’s review of our current local plan. It has also been the subject of a recent petition presented to the local authority, which is supported by thousands of residents. We want to see house building levels cut to reflect our local need, not a standard method formulated in Whitehall.

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

Local authorities are best placed to ensure that the right homes are built in the right places, so does the right hon. Lady agree that we need to protect the voice of local communities in the planning process?

[Dame Maria Miller]

It is as if the hon. Lady has read what I am about to say—she is completely right. Cutting house building in Basingstoke will better reflect the situation we have in our community, and that is what my residents want to see, not those numbers continuing to be set from Whitehall.

Oral Answers to Questions

Sarah Dyke Excerpts

Monday 4th December 2023 Commons Chamber

[Lee Rowley]

My hon. Friend makes an important point. We all want to see those in leasehold in a much improved situation. We are making huge steps forward with this Bill and we look forward to continuing and augmenting that reform in due course.

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

7. What assessment he has made of the implications for his policies of council budget shortfalls.

[Kate Hollern (Blackburn) (Lab)]

18. What recent assessment he has made of the effectiveness of assessments of relative needs at ensuring the adequacy of council funding.

[Sarah Dyke]

May I take this opportunity to wish Mr Speaker a speedy recovery?

I thank the Minister for his response, but I say respectfully that I do not find it satisfactory. I declare an interest as a proudly active Somerset councillor. Councils provide essential services, such as adults’ and children’s social care, yet increasing costs in social care, alongside inflation, mean that many councils around the country are struggling to provide adequate care. I must warn him that, without action, lives will be foreshortened. The cost of providing services is higher in rural areas than urban areas, yet rural residents will receive 13% less per head in social care support. Will he reassure me that the forthcoming fair funding review will address the unequal way rural councils are funded?

[Simon Hoare]

The hon. Lady, who is my constituency neighbour in some respects, makes an important point in a serious way. I concur very much on the seriousness of the issue and the challenge that it is presenting to our upper-tier authorities. As I said, we will of course look in the round at all the pressures being placed on local government to see what we can do to help. She rightly mentions the rural services delivery grant, which I have championed. It is very much in my mind to see what we can do during the settlement to address the issue that she raises of the cost disparity of delivering quality services in rural settings, particularly where populations are sparse.

Rural Councils: Funding

Sarah Dyke Excerpts

Wednesday 29th November 2023 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mrs Latham. I congratulate the hon. Member for West Dorset (Chris Loder), my neighbour, on securing the debate.

I must first declare an interest as a proudly active Somerset councillor. My colleagues and I at Somerset Council and across local government know how difficult times are for councils right across the country. We must not forget the crucial role that local authorities play. They provide essential frontline services to the residents they serve. To do so, and to survive, they must have the necessary support from central Government. In 2018, when the Prime Minister was Under-Secretary of State for Local Government, he claimed to understand just how important local authorities were, so I have been disappointed that more support has not been forthcoming during his premiership to enable local authorities to deliver services to their communities.

Local authorities need to be able to provide first-rate social care for adults and children. The Conservative former leader of Somerset Council has regularly recognised that adult and children’s social care is broken. He has called for immediate investment by Government in social care. Somerset Council is facing a £100 million black hole in its budget, with a significant overspend in social care. The latest estimates show a £70 million increase in costs for 2024-25. The stark reality is that inaction now will cost lives.

The cost of providing services in rural areas, like the majority of Somerton and Frome, is more than in urban areas, yet rural residents will receive 13% less in spending per head on social care support. As a result of underfunding, rural councils are forced to increase council tax to its highest rate in order to balance their budgets. The system is grossly unfair, as we have heard. An increase of 1% in council tax in a largely rural county like Somerset would bring in only £3.4 million, whereas in Surrey, for example, the figure would be about £8 million.

It is clear that in Somerset the urgent pressures we are facing are in part the fault of the previous Conservative administration, which refused to raise council tax for six years between 2010 and 2017—the longest freeze of any council in the country. That irresponsible move saw a minimum shortfall of £24 million per year, and delivered a total cut to services of £150 million. In the same time, the Government cut council funding by 40% until 2020. Combined, those policies have left it impossible for the council to meet its statutory obligations for funding social care at a time of high inflation, which has forced cuts in services that local people rely on. Somerset Council is also ranked towards the bottom for the Government public health funding that it receives. That is not right, and it is not fair.

We are waiting for the 2024-25 local government finance settlement; I hope that it will be fairer for rural local authorities. As the hon. Member for West Dorset mentioned, the current local government funding formula, which has been largely unchanged since 2013-14, has left rural areas with huge losses, and 75% of the exemplified gains were lost to local authorities due to damping and other changes.

Local government has been waiting for the fair funding review for seven years since its announcement, with several years of delay. If it does not urgently address the issues that rural councils are facing, it is highly likely that many more authorities will go bust and end up issuing section 114 notices. That can and should be avoided, as there are no better bodies to run local services than the people who live in the area that they serve. I hope that the Minister, another neighbour of mine, is listening to the very stark cost of ignoring the bleak reality for local authorities and the communities they serve across the country.