Budget Resolutions

Sarah Gibson Excerpts

Monday 2nd November 2026 Commons Chamber

[Zöe Franklin (Guildford) (LD)]

I welcome the Government’s recognition that economic growth cannot be driven solely from Whitehall and that local leaders and communities must have a greater say in shaping their future. The Liberal Democrats have long argued that decisions should be taken as close as possible to the people they affect. We support genuine devolution, greater fiscal autonomy for local government and the empowerment of communities to shape their own future. The real question before us today, however, is whether this Budget will actually deliver the Government’s ambition of good growth in every postcode.

[Sarah Gibson (Chippenham) (LD)]

I am sure that my hon. Friend will agree that rural economies rely on transport. In my constituency, colleges have had to cut their hours because the bus does not come late enough and employers have had to put on their own buses in order to get shift workers. Does my hon. Friend agree that for rural economies to thrive, we really need to look at transport?

[Zöe Franklin]

My hon. Friend is absolutely right. We need that support to ensure that people can get from where they live in rural constituencies to other areas for work and education.

Growth is measured not by the number of new governance structures we create, but by whether people can find an affordable home, access GP appointments, travel to work, start a business and build a secure future in the place that they call home. For the Liberal Democrats, this Budget must meet three tests: democratic consent, sustainable local government finances and tangible improvements in everyday lives.

The first test is democratic consent. Devolution should bring power closer to communities. We should be careful not to mistake devolution for decentralisation. Power removed from Whitehall but concentrated in a single regional office, such as a mayor, is not necessarily power shared with local communities.

In Surrey, the home of my Guildford constituency, that distinction is becoming increasingly apparent. The Budget confirmed that the Government are in the final stages of agreeing arrangements for a mayoral strategic authority in Surrey, despite Ministers previously assuring the House that no area would be forced into a mayoral model. What has changed? There has been no vote of the councils that will have to operate within this structure, and residents have not been given an opportunity to express a view on what model they want. In fact, the bulk of the discussions appear to have been had with Surrey county council—a council that will be defunct in just six months—rather than the new east and west unitaries. How can the Government claim to be bringing power closer to communities when those same communities have had so little say?

Of course, a mayor is democratically elected, but representing an entire county or region is very different to representing a specific town, village or ward. Local councillors understand the character, challenges and priorities of the communities they serve; they are often the first people residents turn to when problems arise. I ask the Minister what meaningful influence locally elected leaders will retain and how the voices of villages and rural communities will be protected under the new arrangements. Devolution should not be forced on communities; it should happen with them.

My second test is whether the Budget delivers sustainable local government finances. The Budget contains announcements on strategic authorities, borrowing powers, business rates retention and new fiscal freedoms. Some of those measures may prove beneficial, but we must not confuse devolution with funding reform. Local government’s central challenge is not governance but financial sustainability. While Ministers talk enthusiastically about new structures and powers, councils across England face profound financial pressure. The Local Government Association has warned of a billion-pound funding gap over the coming years. Against that backdrop, many councils are struggling simply to maintain core services.

To return to my area of Surrey, the six councils coming together to form West Surrey will inherit £4.5 billion of debt while simultaneously facing rising demand for adult social care, children’s services and support for children with special educational needs and disabilities. My concern is about how implementing measures without funding reform solves any of those problems. How does the new governance structure address historical debt? How does it ease pressure on social care budgets? How does it help councils meet rising demand for frontline services?

The Budget includes a £1.5 billion borrowing facility for the strategic authorities. While borrowing may help investment, it is no substitute for financial stability. We must learn lessons from councils such as Woking, where serious financial failures—failures caused by previous Conservative administrations—have left residents paying the price. Nowhere is the gap between structural reform and real-life outcomes clearer than in special educational needs.