Oral Answers to Questions

Debate between Simon Hoare and Jim McMahon

Monday 14th July 2025 Commons Chamber

[Jim McMahon]

I am sure that the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Nottingham North and Kimberley has heard those diligent representations. It is true that many parts of our country have talent and potential that are not being met by opportunity. This fund is about making sure that every area has seed investment to begin to rebuild, supported by fair funding for the local authority. We cannot underestimate the effect of the 14 years of constant hits and attacks from the previous Government. There is a reason why many communities have the resilience to stand up for themselves regardless of all that: the power of their unity. Finally, they now have a Government on their side.

[Simon Hoare (North Dorset) (Con)]

It is often harder to see because it is more sparsely spread across larger rural areas, but I remind the Minister of what I know he knows: deprivation exists in our rural areas. Can I urge him to ensure that this does not become an issue of north versus south or urban versus rural, but that the Government use taxes to address deprivation wherever and whenever it arises, including in my constituency?

[Jim McMahon]

I thank the former Minister for those representations. On the point about fair funding and unpicking where money is needed, there is a lot of commonality on this issue in the Chamber. We absolutely accept that in rural areas the cost of service delivery is higher in some cases, such as for refuse collection and adult social care. It is common sense that if people have to travel further to pick up bins or make a home care visit, it will cost more money as a result.

However, that is not the only thing we need to take into account. We must take into account deprivation and the ability of a council to raise money at a local level. Daytime visitor numbers are also a factor, where a council is not getting a tax take from those visitors but there is a public service take on the other side. Importantly, we must consider the ability of a local authority to raise tax at a local level to meet the demand. It is the Government’s job to act as an equaliser in the system.

English Devolution

Debate between Simon Hoare and Jim McMahon

Monday 16th December 2024 Commons Chamber

[Jim McMahon]

When Labour was last in government, we brought forward landmark legislation to create the Mayor of London, Parliaments in Scotland and Wales and the Assembly in Northern Ireland. The quality council status was introduced for parish and town councils, and powers on wellbeing and other matters were given to local government. The previous Labour Government recognised, just as this Government recognise, that devolution has to work from the top to the bottom and the right powers have to be in the right places. At a neighbourhood level, we see town and parish councils playing a critical role in devolution, and we look forward to further discussions with the sector.

[Simon Hoare (North Dorset) (Con)]

There is much to commend in the White Paper and, broadly, the Minister is to be congratulated. However, he knows as well as I do, as welcome as the multi-year settlement announcement is, it is predicated on an outdated and effectively broken funding system. I understand the Treasury is not keen to revisit that in any meaningful way, but may I urge him to consider a rural-proofing mechanism to the funding formula, to ensure that the additional costs of delivering local services in rural areas are recognised? Change is scary, but I do not recognise the picture painted by the hon. Member for Mid Dorset and North Poole (Vikki Slade). In Dorset, we became a unitary authority, and no sane person would ever want to go back to a two-tier system, but we benefited from the excellent skills of Paul Rowsell, who died earlier this year and is much missed. Will the Minister ensure there are expert teams within his Department to work alongside those councils that wish to make that important change, which will deliver savings and better services to local people?

[Jim McMahon]

I thank the hon. Gentleman, who is my predecessor, for his question and for the tone with which he dealt with us in opposition; I honour that in return. The fair funding review is absolutely critical. We are committed to a multi-year financial settlement, which is about giving security, but we all know there is no security if the money is insufficient to meet demand. The hon. Gentleman and the House have absolute assurance that all the cost factors, including the cost of rural service delivery, will be taken into account in a fair funding review.