Local Government Finance

Sarah Dyke Excerpts

Wednesday 5th February 2025 Commons Chamber

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

I start by drawing Members’ attention to my role as the chair of the all-party parliamentary group on rural services. The APPG is very concerned about the impact this settlement will have on rural local authorities and their ability to provide for their residents. It costs more money to provide services in rural areas, due to a number of factors including low population density, poor connectivity and larger distances to travel, but these facts are not reflected in the funding formula. Analysis by the Rural Services Network has shown that urban councils receive 41% more per head than rural councils in Government-funded spending power. Residents in rural areas now also pay an average of 20% more in council tax than urban residents do.

The removal of the rural services delivery grant, which provided rural local authorities with £110 million extra to deliver essential public services last year, will force rural councils to make yet more difficult financial decisions in order to be able to continue to provide vital frontline services to their residents. The consultation stated that this grant failed to account properly for rural need, and that funding must be allocated more effectively. However, the Government have failed to follow up on this. Instead, they have removed it a year early, with no published evidence for its removal. That means that rural councils will have the lowest increase in core spending power between 2024-25 and 2025-26.

It is disappointing that the new recovery grant will be allocated mainly to urban councils. We have heard about this from Members across the House today, and I certainly do not want to make this an urban/rural debate, but the Government must accept that there is real rural deprivation and that the continued underfunding of rural councils will have a negative impact on people’s lives. My constituency of Glastonbury and Somerton is an example of this. Glastonbury Central is in the 20 most deprived neighbourhoods in England, and a third of households in Street experience deprivation in at least one dimension, according to the 2021 census.

Is it fair that, because residents live in a rural area, they will have to pay more for less? Let us take home-to-school transport as an example. Research by the County Councils Network from 2018 shows that the average cost per head for home-to-school transport is a whopping £93 per child in rural areas, compared with just £10 per child in cities and towns. School transport for children with SEND cost Somerset council £11.6 million in 2023, a 157% increase on 2018. The council operates 283 routes a day for children with SEND. As the council is rural, those routes are many miles long, so they take longer and are much more expensive than those in urban environments —in some cases, costing £1,650 per pupil per week.

Or take Somerset’s increased risk of devastating flooding. Somerset council is the lead local flood authority and is responsible for managing the flood risk from ordinary watercourses, yet it does not have sufficient staffing capacity to deal effectively with the constant risks we face. Somerset is so often at the forefront of flooding and climate change.

Only last week, Somerset suffered immense flooding that forced more than 100 residents of the Primrose Hill residential park in Charlton Adam near Somerton to be evacuated into emergency accommodation. Martock, Blackford, Yeovilton, Podimore, Cary Fitzpaine, Mudford and Bridgehampton also suffered as a result of the flooding, with some residents completely cut off and unable to get to work, school or medical appointments. I tried to visit some of these communities a week ago on Monday and could not get there, so people certainly could not get out.

The lack of investment and proper repairs and maintenance by the previous Conservative-led county council has left the infrastructure fragile and unable to cope. Gullies and ditches are blocked, while culverts and drains have collapsed and are also blocked.

The funding model for local authorities is broken, and Somerset council, like many others, faces increased costs for social care and SEND provision. As a result, investment is put on hold while budgets for other areas of council work come under increasing pressure. Councils like Somerset, which face huge pressure from increased flooding, need ringfenced funding allocations to manage that flood risk, as council budgets simply cannot cope.

I am afraid that this financial settlement will fail to help rural authorities such as Somerset cope with the increased challenges and demands. The Government must recognise the added pressure that rural areas face, and this must be reflected in any financial settlement.

English Devolution and Local Government

Sarah Dyke Excerpts

Wednesday 5th February 2025 Commons Chamber

[Angela Rayner]

My hon. Friend is absolutely right; there is no point having elections to a body that will not exist in 12 months’ time. That would cost huge sums of taxpayers’ money, which, quite frankly, is not warranted. He is also absolutely right to recognise that the Conservatives in Essex were the ones to come forward. I commend them for that, and for wanting to reorganise and see better services and power put into their local area. On his point about local identity, that will absolutely be the case. I am a Mancunian, but I am also from Tameside. Having a mayor and being part of the combined authority has not stopped Tamesiders being proud of our local area.

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

Disappointingly, the Heart of Wessex devolution deal was not included in the priority programme, despite the region being well placed to support the Government’s growth objectives and showing national resilience in clean energy, defence, digital technologies and food security. Can the Secretary of State confirm the options available for regions that are not in the priority programme but wish to move at pace to enable them to deliver and benefit from devolution?

[Angela Rayner]

I thank the hon. Member for recognising the positivity that devolution can unlock for local areas. The deal she mentions was not included in this round because it was not developed enough. However, I urge Members and those local areas to continue to work with the Government because we want to deliver for them and we will continue to make sure we can deliver devolution across the whole of England.

Local Government Reorganisation

Sarah Dyke Excerpts

Wednesday 15th January 2025 Commons Chamber

[Jim McMahon]

I think that is a fair point, and I will take it away.

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

Somerset, Dorset and Wiltshire are working together collaboratively on the Heart of Wessex devolution deal and hope to be on the devolution priority programme, but there is still some uncertainty over what decision Bournemouth, Christchurch and Poole will make. Can the Minister confirm that the decision to include the Wessex proposal will not be held back, depending on the BCP decision?

[Jim McMahon]

We have to stick to the principles of the White Paper, because that informs the legislation that will come later this year. We are very clear in the criteria that we will not, and cannot, agree to any devolution proposals that create orphans that cannot be resolved. We expect that local leaders will come together and do what is right, given the geography of their place, to deliver devolution as soon as possible.

Town Centres

Sarah Dyke Excerpts

Tuesday 7th January 2025 Westminster Hall

[Luke Murphy]

I think it was the hon. Gentleman who suggested that he might come in early, but I thank him for his intervention. I agree, but I will leave it to the Minister to respond more fully. I will take interventions from a number of Members. I am grateful to those who made it clear in advance that they wish to speak. I will try to get to them first, and I will do my best if others want to come in, but I am conscious that we do not have a huge amount of time.

Because of the issues and trends that I have highlighted, Basingstoke’s Festival Place shopping centre now contends with long-term vacancies. Some of the largest storefronts, such as the old Debenhams building, have sat empty for years. All too often, new businesses open their doors with optimism in the Top of the Town, but they find themselves shuttered within a matter of months.

After 14 years of Conservative Government, Britain’s high streets and town centres have been hollowed out. According to the Centre for Retail Research, more than 10,000 shops closed in 2023 alone. The high turnover of shopfronts leaves not just holes in the high street but a sense of instability that undermines confidence in the local economy, yet amid the challenges there is undeniably an opportunity to breathe new life into our high streets.

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

I thank the hon. Gentleman for giving way and for securing this really important debate.

Rural market towns are really important. In my constituency of Glastonbury and Somerton, Wincanton would benefit massively from regeneration. In fact, it was due to receive a considerable amount of funding—£10 million. The council put together a strong bid, but the former Member was unable to support it. Does the hon. Gentleman agree that encouraging regeneration in our town centres and boosting footfall is the best way to bring prosperity back to our rural market towns?

[Luke Murphy]

I fully agree, but I will leave it there—for the sake of time, I will be short in agreeing with interventions.

None the less, like many towns and villages across the country, Basingstoke’s town centre is a hub of remarkable independent businesses that continue to thrive, despite years of neglect, from the unique offerings of Afrizi and the cherished Willows to the flavours of the Chennai Express and the ever-popular Festival Street Kitchen. These diverse ventures highlight the incredible entrepreneurial spirit in our town. The wealth of talent and creativity showcases the untapped potential of small business owners in our town, who deserve greater support and investment.

Oral Answers to Questions

Sarah Dyke Excerpts

Monday 2nd December 2024 Commons Chamber

[Rushanara Ali]

As I said, we have an ambitious plan for affordable and social housing, which fits within the Government’s commitment to build 1.5 million homes. It is vital to make supply available. We are putting in funding, including £500 million for the affordable homes programme, which will build 5,000 properties. The hon. Gentleman is aware of the work we are doing to ensure that there is a proper and effective national planning framework to go hand in hand with local work with local authorities. I hope he can see that we are very much working in the spirit of ensuring that we increase supply, provide affordable and social housing, and tackle the root causes that need to be addressed.

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

Some 18,000 homes with planning permission across Somerset are waiting to be built, but nutrient neutrality issues, flood risk and the national shortage of planners are preventing or delaying the delivery of those much-needed homes. What discussions has the Minister had with Cabinet colleagues about fixing the issue and ensuring that appropriate homes are built to help reduce the strain caused by the lack of housing in Somerset?

[Rushanara Ali]

I can reassure the hon Lady that the Government are addressing those issues and will take appropriate action. My right hon. Friend the Secretary of State and other Ministers are very much engaged with this important agenda.

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.