Local Government Finance (England)

Catherine McKinnell Excerpts

Wednesday 10th February 2016 Commons Chamber

[Steve Double]

I want to address the point about the transitional grant. I am happy to place on record that, as of Monday morning, I was one of the Conservative Members who would have been prepared to walk through the No Lobby this evening and vote against the Government. That was because the proposed settlement was unfair to rural areas. It would have widened the gap in Government funding between rural and urban areas. I campaigned passionately during the election to stand up for Cornwall as a rural area and to seek a fairer funding deal for it, and I was not prepared to support the proposed settlement.

It is a well-established fact that rural areas have had the raw end of the deal from central Government for decades, despite having some of the highest levels of deprivation in the country and a growing ageing population, with all the increased pressure that that places on the delivery of services and the increased demand that it creates, not to mention the additional challenges and costs of delivering those services in a rural setting. Yet places such as Cornwall have had to accept lower levels of funding for many years, not just for our local government, but for things such as our schools and police. I am proud that this Government, under the leadership of my right hon. Friend the Prime Minister, have started to address that issue—it has been going on too long. We have started to see extra money put into our schools and, through the rural services delivery grant, we have begun to close the gap in local authority funding.

When I looked at what was being proposed in the settlement, I was therefore disappointed to find that it would have widened that gap and started to undo much of the good work the Government have already begun. I could not have supported a financial settlement that was going to make an unfair system even more unfair to rural areas. If I had gone through the No Lobby tonight, it would have been my first rebellion against the Government. As someone who has a slightly inherent rebellious streak in their nature, I am slightly disappointed that my rebellion will have to wait for another occasion.

I am delighted to say that the Secretary of State has listened to the many voices from across the House from rural areas who highlighted that what was being proposed was simply unacceptable to rural areas. I want to place on the record my thanks to him for the way he has conducted this consultation. He met me, as well as my Cornish colleagues and MPs from many areas, and he listened to our concerns. I am not sure I am going to go as far as my hon. Friend the Member for North Dorset (Simon Hoare), who is no longer in his place, and offer a wet kiss, but I want to place on the record my great gratitude for the way in which the Secretary of State has listened to our concerns and come forward with proposals that address them.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I am sure the hon. Gentleman will have detected that the vast majority of north-east councils, save for Northumberland, will get nothing from the transitional fund. The argument he appears to be confirming in his speech is that the decisions taken by the Secretary of State to grant transitional funding are based on staving off a Conservative rebellion, rather than on actually giving the funding to local authorities that need it the most.

[Steve Double]

I thank the hon. Lady for her intervention, but this is simply about the case that was made about rural constituencies, where the funding was going to widen the gap we had begun to close. That was the issue at stake. I am delighted that not only have funds been made available through this transitional grant to make sure that that gap does not get any wider, but, probably more importantly, we have the promise of a comprehensive review of the cost of delivering services. That gives us the opportunity to establish that it costs more to deliver services in rural areas than in urban areas.