Local Government Finance

Terry Jermy Excerpts

Wednesday 11th February 2026 Commons Chamber

[Terry Jermy (South West Norfolk) (Lab)]

I was first elected back in 2008, when I stood in a by-election for my local town council. I was 22. It was by chance, really, that the opportunity came up to put myself forward to stand to represent my local community. As it happened, I beat the headteacher of the local high school in that by-election. Up until recently, it was my favourite election win. I went on to stand for the district council a few years later, and a few years after that, I stood for Norfolk county council.

I ended up spending more than 12 years in all three tiers of local government in Norfolk, and what I found was a world of local government officers and local councillors working incredibly hard to serve their local communities and trying to save money and almost work the impossible by constantly striving for efficiencies by doing whatever they possibly could. Good councils and good councillors are a real force for good. They can achieve so many wonderful things, but they are overshadowed in many ways by national Government. I want to put on the record my thanks to local government. We saw this during covid, because it was local government, particularly, that really rose to that challenge to serve.

I was elected, as I say, in 2008, and for the vast majority of my time as a local councillor, we saw cut after cut after cut. Every single February budget-setting council meeting was a constant battle to try to save money. Both councils—Breckland district council and Norfolk county council—were Conservative-led under a Conservative Government, and we were cutting services constantly. We ended up with massively weakened resilience, and the services that bound our communities together were eroded. These were not just numbers on a balance sheet. In Norfolk, it meant we were closing children’s centres, removing support for disabled people, closing the youth service in Norfolk entirely, and selling off assets. It was just this constant battle. I understand the predicament the Government are in and have a significant amount of sympathy because it will take years to undo those constant cuts and the eroding of that resilience; it will not be easy to turn that around.

I want to make three points to the Minister. The first is about rural services. I am proud to represent South West Norfolk, a very rural constituency. I cover half of two districts: Breckland, and King’s Lynn and West Norfolk. They are very rural councils, and it is expensive to provide services to a rural community. I am pleased that social care in particular is being acknowledged as expensive. Social care is particularly expensive across the whole county of Norfolk, but other district council services in rural areas are expensive too, specifically planning. We are a Government that want growth. We want growth all across the country, including in rural areas. We massively need to support planning services in rural areas to achieve growth potential and not have lingering planning applications sat waiting on determination. It is difficult to recruit planning officers for rural district councils, and that is a barrier to growth in rural areas.

The other area is housing. I have been constantly shocked and concerned about the state of housing in my constituency. There are huge issues with rural housing, such as damp, mould and draughts—all sorts of challenges that we are dealing with in my office. Housing challenges in rural areas are expensive, and we as a council often have to transport people from one end of the county to the other or out of the county because there is a lack of suitable temporary and emergency accommodation.

The second point I want to make is around hidden deprivation. The council ward I represented was, despite being in a rural area, within the top 10% most deprived in the country. We had very low wages, poor health and low skills and educational attainment. I am concerned that intense deprivation in rural areas is masked by more affluent surroundings in so many Government metrics. I hope the Government come up with a system that properly accounts for and recognises intense deprivation in rural areas and does not just look at the overall council boundary.

The last point I want to make, which was touched on by the hon. Member for North West Norfolk (James Wild), is about internal drainage boards. I appreciate that it is slightly niche because this is relevant only in a certain number of constituencies in the country—certainly in Norfolk, Cambridgeshire and Lincolnshire. These critical pieces of infrastructure remove water from significant amounts of land, both residential and agricultural. If we did not have IDBs, so much of our land, particularly agricultural land, would just not be usable, and it would weaken this country’s food security.

I have dozens of IDBs in South West Norfolk, and I have spent a lot of time visiting them. They do incredible work, but the finances of councils that have internal drainage boards in their areas are experiencing great impacts. In King’s Lynn and West Norfolk borough council, for every pound of council tax paid, 43p goes on IDB levies. In the 2025-26 financial year, the council is spending £3.7 million just on levies. Many councils obviously do not have that expense—they are unique pressures for those areas—but the costs of IDBs have gone up a lot because the electricity cost of manning the pumps is also going up.

My constituency has the largest pumping station in Europe at Wiggenhall St Germans, and there is a network across the area. That give me the opportunity to mention a pumping station in Welney that I visited a couple of weeks ago, where I met Ken Goodyer, Patrick Clabon and Carl Nunn.

My real concern about IDBs is that the infrastructure is 50 or 60 years old, costs a fortune to maintain, and will fail at some point. We need to invest in IDB capital and revenue costs. I urge the Government to continue support for councils affected by IDBs, because it is crucial infrastructure.