Local Government Finance

Oral Answers to Questions — Communities and Local Government – in the House of Commons at 2:30 pm on 4 February 2013.

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Photo of John Whittingdale John Whittingdale Chair, Culture, Media and Sport Committee, Vice-Chair, Conservative 1922 Committee 2:30, 4 February 2013

What assessment he has made of the effect of the local government finance settlement on local authorities in rural areas.

Photo of Brandon Lewis Brandon Lewis The Parliamentary Under-Secretary for Communities and Local Government

We have confirmed the increase in the sparsity weighting and top-ups that we proposed at consultation. Further, we are providing an £8.5 million grant to support the delivery to sparsely populated areas of efficiencies in services.

Photo of John Whittingdale John Whittingdale Chair, Culture, Media and Sport Committee, Vice-Chair, Conservative 1922 Committee

May I welcome my hon. Friend’s recognition of the fact that the provision of services in rural communities such as Maldon district where populations are sparsely distributed often costs more, but does he accept the disappointment that the local government finance settlement appears to do little to reduce the rural penalty? In fact, it entrenches it for forthcoming years.

Photo of Brandon Lewis Brandon Lewis The Parliamentary Under-Secretary for Communities and Local Government

We recognise the concerns of rural areas such as Maldon and similar areas where the costs that sparsity can bring are clear. The £8.5 million that we have announced in the statement today will go to 95 local authorities, all of which are rural. However, I would point out that in meetings that my officials and I have had with people from rural networks we have confirmed that the gap is narrowing thanks to changes that we made in the settlement. It is becoming smaller than it ever was under the previous Government, who put the finances in a situation that was detrimental to rural areas across the country.

Photo of Duncan Hames Duncan Hames Liberal Democrat, Chippenham

Those newly announced funds are certainly welcome. Is the Minister aware that in his Department’s own analysis shire districts such as Watford borough council count as rural while unitaries, including Wiltshire council, are lumped in the urban category? Given that, how can he be sure of the boast that the proposed settlement is fair to urban and rural alike?

Photo of Brandon Lewis Brandon Lewis The Parliamentary Under-Secretary for Communities and Local Government

I am quite happy to meet the hon. Gentleman to go through the situation. We have confirmed with rural networks that across all types of authorities the gap between rural and urban has narrowed as a result of the statement.