Local Government Funding: Rural Areas

John Bercow Excerpts

Monday 11th January 2016 Commons Chamber

[Graham Stuart]

This debate has been a breath of fresh air throughout which there have been tremendous contributions from Members across the House. I am delighted that thanks to the Backbench Business Committee we were able to have this discussion.

Throughout his career, the Minister has been thoughtful, listening and insightful—[Interruption] And eloquent—I thank the Whip, my hon. Friend the Member for Skipton and Ripon (Julian Smith). Prompted by him, I am sure that more kind blandishments can be sent the Minister’s way. I am grateful for the Minister’s response and for the fact that he and the Secretary of State have listened to us.

The Minister said that he would treat this debate as part of the consultation, which closes this Friday. I have two asks on that. First, he should speak to his ministerial predecessor, who is sitting next to him—my hon. Friend the Member for Great Yarmouth (Brandon Lewis). When he was Minister, we were not very happy that there was an equal imposition of reductions in central Government funding to every council when there was such a discrepancy between rural and urban areas. We wanted that gap reduced, and he said, “These are tough times and we have inherited a deficit—I’ve got to do something that’s manageable and realistic.” So there was an equal cut in local government grant—11% was being saved and it was done uniformly to everybody. Unfortunately, that will go out of the window in this year’s proposed settlement. Metropolitan areas will see a 19% reduction in central Government funding over this Parliament, yet rural areas will see a 30%-plus reduction.

That cannot be right, for all the reasons set out brilliantly, it has to be said, by Labour Members—not only the hon. Member for Workington (Sue Hayman) but the shadow Minister, who, I am delighted to say, recognised that rural areas are facing the greatest hit. Anyone who wants to can look at Hansard tomorrow and see the Labour spokesman saying that. It is a shame that he did not go further and say that he wants the gap to be closed. Then again, given the Corbynite north London elite who are gathering behind him, it is not surprising—[Interruption.]

[Mr Speaker]

Order. I think that the hon. Gentleman has inadvertently provoked what seems to be a voluntary identity parade, for which there is no requirement at this late hour.

[Graham Stuart]

I apologise, Mr Speaker. Anyone who introduces more schizophrenia to the Labour party deserves to be told off by you and others. It is a shame that the logic of the argument so brilliantly espoused by the shadow Minister did not lead to a Labour commitment to do the right thing and close the gap.

My first ask is that, if we are going to make savings—and we Conservative Members say that we do—let us do it equally everywhere, so that there is no discrepancy between urban and rural when there is already a big gap between the two. As we have established, people in country areas are older, poorer, pay higher council tax and receive fewer services. It has to be right to close the gap, and the way to do that is by delivering, in this Parliament, an increase of £130 million, not £65 million, in the rural services delivery grant.

I think I speak on behalf of Conservative colleagues when I say that, if there is equal pain for everybody and an increase of £130 million in the rural services delivery grant in this Parliament, we would be happy. Our council leaders would still have enormously tough jobs to do, but they would feel that we were all sharing the burden fairly. If the Minister can go to the Secretary of State and deliver that, he will be not only applauded by Conservative Members, but, perhaps more materially to him and his colleagues, supported in the Lobby when we vote on the issue next month.

Question put and agreed to.

Resolved,

That this House has considered local government funding for rural areas.