Local Government Funding: Rural Areas

Tim Loughton Excerpts

Monday 11th January 2016 Commons Chamber

[Graham Stuart]

As I have said, under this year’s provisional settlement, rural councils are being allowed to increase council tax by up to 4%. In order to compensate for the deeper cuts in their central Government grant, many rural councils will be forced to increase council tax by the full amount so that they can provide their statutory services. The impact of that will be that older, poorer residents in rural areas will be faced with an even larger council tax bill, and, more perversely, the gap in the amount of council tax that they and their urban counterparts pay will increase in cash terms.

I am also concerned about the mechanism whereby savings are being made in this year’s provisional settlement. At the end of the last Parliament, flat-rate cuts were applied across the central Government grant that every council received. If the Government were saving 11%, every council’s grant was cut by that amount. We argued strongly that that was not fair, because we needed to close the gap rather than allowing it to stay the same. This year, however, the Government are proposing to apply their broadly flat-rate cuts to the core spending power of local authorities. That sounds very reasonable and, indeed, natural, but it includes Government grant and council tax. As a result, the authorities that are already most reliant on council tax will experience a steeper cut in their Government grant, whereas those that are more reliant on Government grant will experience a smaller cut. Research by the Rural Services Network shows that, while metropolitan authorities will face a cut in Government grant of around 19% during this Parliament, rural authorities will face an average cut of 30% or more.

[Tim Loughton (East Worthing and Shoreham) (Con)]

My hon. Friend is making an excellent case. May I enter a plea for semi-rural constituencies? Adur, which comprises most of my constituency, is a local government district. In half the areas within the national park we cannot have the development that would attract the new homes bonus, and the population is concentrated on the coastal strip where there are significant areas of deprivation. We are losing revenue support grant at a much higher rate, and it cannot be replaced by the new homes bonus because no land is available for development except on floodplains.

[Graham Stuart]

My hon. Friend is right. I remember speaking recently to a North Yorkshire councillor who said, “Given that we have a huge park here, we are specifically barred from development and we are rather restricted in our ability to respond to the incentives that have so generously been put in front of us.”

Just as we know all people are created equal and we hold them to be equal under the law, so surely we must insist on equity in the way we impose tax on them and fund the services that support their lives. Beyond imprisonment, taxation represents the supreme expression of the power of the state over the private individual citizen. As Members of this place, we would not accept it if the Government proposed to tax people more and to spend less on them because they were black or white, Christian or Muslim, a man or a woman. There would be uproar. Yet at present we presume to discriminate in this way based on the flimsiest of pretexts—the area in which someone chooses to live, to work and to raise their children.

The rural voice in British politics in some ways resembles our countryside itself. With a few glorious exceptions, ours is not a land of soaring mountains, plunging valleys and jagged peaks. To conjure up rural England is to convey the patchwork beauty of tended fields, the muted chime of church bells or the majesty of ancient woodland, reflecting man’s presence on the land as it has come down to us through innumerable generations. There is a softness and a neatness to our countryside that can be mistaken for cosseted privilege, all ruddy-cheeked squires and roaring fires. Those of us fortunate enough to represent rural areas know that that is not the case and that sleepy villages can be home to people whose lives are characterised by want every bit as intense, or blighted by strokes of ill fortune or ill health just as devastating, as those who dwell in our towns and cities. Yet this local government settlement would tell them once again, as it has done year after year after year, that they must pay more and make do with less.

The rural cause can—must, will—be silent no longer. It is for us in this place to give it a voice. For hon. Friends on my side of the House, I believe that to be especially true. It was rural England that kept the flame of Conservatism alive for a long period—nearly 20 years. Now is the time for those of us who have been loyally returned by rural areas to make good on our contract with our electors. I stand with colleagues to ask, politely but firmly, for fairness, not favours, from Ministers, and to express our unyielding resolution that that should be delivered.