Local Government Finance

Simon Hoare Excerpts

Wednesday 17th December 2025 Commons Chamber

[Alison McGovern]

My hon. Friend, who chairs the Education Committee, will know that it is not just the cost of temporary accommodation to councils; it is also the cost of children’s schooling. Last week I set out our strategy to counteract that terrible phenomenon and I will talk in detail to councils in the weeks and months to come to do exactly as she asks.

[Simon Hoare (North Dorset) (Con)]

I thank the Minister and her officials for their work—it is the most painful task to have to pull all this together and they are all to be commended. I agree with her that multi-year settlements should lead to smarter commissioning, which should then deliver greater return on the money. She will know that the cost of delivering services in rural areas is higher—everyone across the House recognises that—so can she say what this proposed settlement will do specifically to address that and allow equity of opportunity in access to services, whether one is an urban or rural resident?

[Alison McGovern]

The hon. Gentleman is absolutely right to highlight how we have to do things differently in rural areas, and we have tried to take account of that need. That is why we are including a journey times adjustment in our assessment of cost for all services. We are also increasing the cap in the home-to-school transport formula from 20 miles to 50 miles, in recognition of the fact that the original distance cap would penalise local authorities that have no choice but to place children further from home. We are also including a remoteness adjustment in the adult social care formula to address the point that he mentions. Overall, the point cannot be made enough that we have to do things differently in rural areas, and we all need to take account of that.