Oral Answers to Questions

Debate between Kevin McKenna and Jim McMahon

Monday 3rd March 2025 Commons Chamber

[Kevin McKenna (Sittingbourne and Sheppey) (Lab)]

22. What steps her Department is taking to ensure areas with higher levels of deprivation receive adequate funding.

[The Minister for Local Government and English Devolution (Jim McMahon)]

We of course recognise the challenges that local authorities face, as demand increases for critical services. That is why the final settlement for 2025-26 made available over £69 billion for local government in England—a cash increase of 6.8% in core spending power on 2024-25. The most relatively deprived areas of England will receive 23% more per dwelling than the least deprived. Of course, spending decisions beyond this year are a matter for the upcoming spending review.

--- Later in debate ---

[Jim McMahon]

The hon. Gentleman and all Members of the House have our absolute commitment that when we revise the funding formula, we will ensure that it takes into account all the matters he mentions. The multi-year settlement is intended to give stability. We have to make sure that councils are on their feet at the end of that. We recognise entirely that deprivation is a driver of cost, but so is the cost of rural service delivery.

[Kevin McKenna]

The 48th most deprived locality in England and five of the 10 most deprived localities under Kent county council are in my constituency, yet the council struggles to understand the levels of deprivation and to adequately resource those localities. Can the Minister assure my constituents that devolution and reorganisation of local government in Kent will ensure that their needs are not ignored like this in the future?

[Jim McMahon]

I will not comment on individual councils, other than to say that this is why local government reorganisation is so important. In too many parts of England, the two-tier system is not working for local people. The two-tier premium means that a two-tier system is a more expensive way of delivering public services, and most members of the public have no idea which council is responsible for delivering which service. It is therefore right that we go through this reform. My hon. Friend is absolutely right to say that, in the end, things have to work for local people. All the matters that he covered are on our mind.