UK Shared Prosperity Fund: Rural Areas

Part of the debate – in the House of Commons at 7:19 pm on 11 May 2022.

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Photo of Neil O'Brien Neil O'Brien Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities) 7:19, 11 May 2022

It will be opening extremely shortly. I will take that offline with my hon. Friend, and we have indeed tried to learn lessons to improve that aspect of the fund from the first round.

My hon. Friend raised a number of other critical issues. She talked about the need for more GPs surgeries. I wholly agree, and the Levelling Up and Regeneration Bill published today responds to exactly that issue and to the campaigning by her and other hon. Members here.

We must ensure that development always comes with the infrastructure that is needed. Section 106 has seen money handed back to developers, which is intensely frustrating for local communities: projects become outdated by the time money is available, money cannot be adequately pooled to add up to major projects, it is not a transparent system and it does not reflect the cumulative effect of development because funds cannot be pooled properly.

The new infrastructure levy that we propose through that Bill will change all that. It means more money for local communities, more of the benefits of development for the local community and not just developers, more local control over what it is spent on and matching of new housing to the infrastructure that is needed.

My hon. Friend also talked about the challenges of digital connectivity in rural areas and her success in the early roll-out. We are investing £5 billion so that hard-to-reach areas can get gigabit speeds. More than 67% of UK premises can now access gigabit-capable broadband, an enormous leap forward from July 2019, when coverage was just 8%. That is a spectacular transformation. The £1 billion that we are investing in the shared rural network will particularly help to improve mobile signal in rural areas such as Rutland and Melton, so that she can spend even more time when she is on the A47 lobbying Ministers with brutal effectiveness.

My hon. Friend talked about the critical issue of local government finance. The overriding ambition of the Government is to keep bills low by giving councils the tools and firepower to keep taxes low while offering first-rate services to their residents. The Russian invasion of Ukraine has an impact on that and makes the cost of living even more important. Our local government finance settlement for 2022-23 meets that ambition by providing an additional £3.7 billion of funding to local authorities, including support for adult social care reform, which is critical for rural areas with older populations.

In my hon. Friend’s constituency, that funding translates to a cash-terms increase in core spending power for Harborough council of 6% compared with last year; for Melton it is a 9.3% increase and for Rutland a 7.4% increase. For Leicestershire County Council it translates to a 6.9% increase compared with the previous year. The new funding we have made available is the largest cash-terms increase in grant funding provided through the settlement in the past 10 years and is testament to the support we are affording councils in every corner of the country, especially those outside our major towns and cities.

My hon. Friend is quite right to say that these things can always be improved, and I am sure she will continue to power forward on this agenda.