Sheryll Murray
Main Page: Sheryll Murray (Conservative - South East Cornwall)Local Government Funding: Rural Areas
Sheryll Murray Excerpts
Graham Stuart
On this side of the House, but, I am pleased to say, in all parts of the House. They are here because they want a system that is fair to all. Conservative Members represent rural areas, but we also represent suburban and urban areas. We do not want a system that is reverse-gerrymandered, an unfair mirror image of the previous system. We want a system that is demonstrably and objectively fair to all, as far as such a system can reasonably be delivered.
Mrs Sheryll Murray (South East Cornwall) (Con)
Does my hon. Friend agree that the absence of representation on the other side of the House shows that this aspect of funding does not seem to affect different parts of the country in different ways? Labour Members representing urban areas do not feel the same concern, because their constituents do not have the same worries.
Graham Stuart
Historically, most of the Labour party’s support has come from the urban heartlands. That may have led it, when in government, always to use concentrated deprivation as an excuse for moving funds to those urban heartlands, at the expense of rural areas. As I said at the outset, it is important to bear in mind that people in rural areas are not part of an idyll. They are not richer; indeed, on average they are poorer.
Sue Hayman (Workington) (Lab)
I thank the hon. Member for Beverley and Holderness (Graham Stuart) for securing this debate. I was absolutely delighted when he asked me to co-sponsor it, because this matter is so important for many, many rural communities, including my own in Cumbria.
This debate is about fairness. It is about local authorities in rural areas receiving fair funding. Wherever we live, we pay a fair amount of council tax, from which we as a resident or a business in that community expect to receive decent, accessible services. Currently, rural communities tend to pay higher council tax bills, receive fewer Government grants and have access to fewer services than communities in urban areas. One thing I have always thought is that those of us who have been brought up in rural communities have lower expectations about what services we are entitled to, and we should not have; we should demand what we pay for.
Cumbria, where I live, is a truly rural area. Aside from the small cathedral city of Carlisle, it is the market towns that grow our economy. Some 95% of our businesses are small and medium-sized enterprises, most of which employ fewer than 20 people. Other rural economies are hinterlands to city regions and they have very different expectations, problems and challenges to the ones that we face in Cumbria.
Cumbria has one of the largest land mass areas in the country. To illustrate my point, I ask Members here to imagine a map of London and its surrounding areas. If we laid Cumbria over that map, it would cover an area from Cambridge in the north, all the way down to Hampshire in the south, across to Oxfordshire in the west and over to Essex in the east. I do not think that many people really appreciate the size of the county. Given that alongside that we have a population of only 500,000, delivering services for our local authorities is a real challenge.
The real difficulty for Cumbria is that the business rates retention model is based on growth in business premises. I have already mentioned the number of SMEs and the small number of people they employ, and because of that many of them are based at home; they are residential businesses. Many, for example, are bed and breakfasts. We have only a limited amount of business growth that will be reflected in an increase in business rates income. To put it simply, we cannot increase our income from business rates in the way that can be done in urban areas; we simply do not have the capacity. As I am sure many Members will agree, it is also more problematic for those areas that have two-tier authorities, such as Cumbria.
Let me focus on some of the challenges. First, there is transport, which has already been discussed today. In Cumbria, we have 7,000 miles of roads, and that does not include all the footpaths that the local authority has to maintain. The geography and our weather conditions mean that a huge amount of resources are required to maintain those networks. The large number of visitors we receive also puts a lot of pressure both on the roads and the footpaths. In fact, under the current funding formula, Cumbria does not get any extra money for dealing with its visitors, who increase the population hugely during the summer.
We also need to think about the weather. Everyone has seen the recent flooding in Cumbria. Our roads always suffer very, very badly from the weather, which again puts increased pressure on the council’s funding. We now have huge problems to resolve. I know that we get extra funding from Government for the flooding, but it does not come close to what we need, particularly given the recent council cuts. Our transport budget has been cut by a third, so the roads are already in dire need of extra help.
Mrs Sheryll Murray
I have a lot of sympathy with what the hon. Lady is saying, but is she as disappointed as we are on the Conservative Benches that she is the sole voice from her party for this very important debate?
Sue Hayman
I thank the hon. Lady for that intervention. I am grateful that I have two of my hon. Friends in front of me, but I take her point. To me, rural issues should not be party political issues. Everyone who lives in a rural community is entitled to be represented by both parties, by the Scottish National party and by other parties that are not represented here today. I have discussed these issues with other Members. I know they are interested and I would have liked to see more of them in the Chamber this evening. I cannot deny that.
On another transport-related issue, let us look at the impact that lack of funding has had on our bus services. Owing to the reduction in funding for Cumbria county council, we have unfortunately lost a number of bus services as the county could no longer afford to pay the subsidies. In a rural area that is a real worry. In Cumbria, anyone who cannot afford to buy and run a car, or who cannot drive, is cut off from accessing services or even from being able to get a job and go to work. In the village where I live, we have a bus to Cockermouth on a Wednesday, which is fine for people who want to do a bit of shopping or meet some friends, but is not much good for anyone who needs to get to work. That service is now under threat. We could lose that important lifeline for the elderly people who live in my village.
My daughter was unable to get a job until she passed her driving test. It is not cheap for a young person to pass a driving test and it is not easy to do so—it took her three goes, but she passed and she now has some work. That situation puts extra pressures on our young people and does not encourage them to stay and live in our communities.
These huge costs of transport make it difficult for the local authority to deliver services across the board. Those transport costs are a factor in the delivery, for example, of social care, as has been discussed. Another example is waste collection. Studies have shown that it costs almost double the amount to collect a bin in a rural area, compared with an urban area. It is not just a little bit more expensive; it is much more expensive.
The public health funding model does not take into account the significant cost of running services in rural areas—again, because of the transport costs and the distances that need to be covered—so we risk letting down the people who live furthest from the centre. The people on the edges are often missed because of the difficulty in delivering those services. That is exacerbated by the fact that our population is ageing. If our population is ageing, does not want to drive and is experiencing more health problems, it seems crazy to me that we do not have sufficient funding to allow older people proper access to the health services that they need.
We have had a campaign running in Cumbria for some time to ensure that services from West Cumberland hospital are not moved to Carlisle and beyond that to Newcastle. It is still a long way for people in my constituency to go to Whitehaven to access services there. If we lose that, it becomes more problematic. Recent events in Cumbria and the number of road closures and bridges damaged show the paucity of our roads infrastructure and the further problems that that causes. We need proper funding so that the county council-maintained roads can be properly managed; otherwise, there is the risk of dreadful isolation in communities in rural areas.
Hon. Members have spoken about rural poverty. Pockets of rural poverty are very real, but often missed. If we do not have proper outreach services, we do not know what people need. As I said, people in rural areas tend to be quieter about their requirements. We could go down a dangerous route if we are not careful. We need to make sure that everyone has the services they need and that they can access employment properly. Unless we do that, we simply pile on the deprivation and do nothing to support those who need help most.
I shall move on to another issue, which I wish I did not have to do. The Government have suggested on a number of occasions that local authorities can make cost savings by prioritising internet-based services and advice. I do not know what it is like for other hon. Members, but I do not want to get bogged down in the lack of access to broadband in my constituency. It makes me want to tear my hair out.
Simon Hoare
My hon. Friend is absolutely right. She sets out a repeating pattern of change and evolution that we have seen in local government, and my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) will know of the work that his council did with my old council. Let me give an example of what North Dorset District Council has done. It is a low-spending, low-taxing, Tory-controlled, rural shire district council. It has been on its efficiency journey for well over 10 years, during which time it has developed a mixed economy of services, transferring some services to community groups and town councils. For example, Blandford Forum Town Council chips in £50,000 for the running of the town’s leisure centre, which just a few short years ago was the sole preserve of North Dorset District Council. It has transferred other services to commercial operators. Its final asset—the last jewel in its crown—is the council office site, and it has already agreed to dispose of that as part of its survival campaign.
North Dorset District Council is part of the Dorset councils partnership, which is the only tri-council model in the country, covering the constituencies of my right hon. Friend the Member for West Dorset (Mr Letwin), my hon. Friend the Member for South Dorset (Richard Drax) and myself. We share a chief executive, a senior leadership team and staffing with two other local councils. When the district council started this journey we had 300 members of staff, and we now have 100. This is not about arguing for the status quo; it is about arguing for fairness.
Mrs Sheryll Murray
My hon. Friend mentioned the funding settlement, and I understand about the level of funding, but does he not welcome the four-year budget plan that now gives councils at least the opportunity to plan ahead?
Simon Hoare
No, and for reasons that I will explain to my hon. Friend in just a moment.
If I took Members to my North Dorset constituency—this echoes what my hon. Friend the Member for Beverley and Holderness, the hon. Member for Workington and others have said—they would see that it looks lovely, and it is lovely. But we have poor public transport, notwithstanding the excellent service that Damory tries to provide with the budget it receives from the county. The majority of my residents are retired. We have poor and patchy broadband. We have an historical low skills base. We have a poor road infrastructure. One of our straplines is, “Come to Dorset; there are no motorways.” Forget motorways; we have no dual carriageway in my constituency. Indeed, a passing place on a B road is greeted like an oasis in the desert. Access to affordable housing is constrained. The average salary of a vast number of my residents is well below the national average—the national average is about £24,000, but in my constituency it is about £17,500. A large number of my constituents are tenant farmers, or those associated with agriculture, living in tied accommodation.
Therefore, although those wonderful rolling hills and green pastures of the Blackmore vale look enchanting, and while the area of outstanding natural beauty of the Cranborne Chase is indeed beautiful, there are pockets of deprivation in those rural areas, for example in Blandford Forum, Shaftesbury and Gillingham, and for some unknown reason no wise expert in either the Treasury or the Department for Communities and Local Government can find a perfect mechanism for measuring that rural deprivation. That is a huge gap in how we approach the settlement.
Mrs Sheryll Murray (South East Cornwall) (Con)
It is a pleasure to follow my hon. Friend the Member for North Dorset (Simon Hoare). I also thank the Backbench Business Committee for agreeing to hold this debate on rural funding, and I congratulate my hon. Friend the Member for Beverley and Holderness (Graham Stuart), who, for all the time I have been in this House, has been a strong voice and strong leader on behalf of our rural communities and fairer funding.
I will not go into as much detail on rural funding as my hon. Friend the Member for North Dorset, but I will say that I was a Cornwall county councillor from 2001 and I can remember the changes introduced by the then Labour Government, which severely disadvantaged places such as Cornwall. I acknowledge that the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Nuneaton (Mr Jones), and his predecessors in the last Parliament have done their best to rebalance the situation.
I am going to focus on rural transport. I was born and grew up in a small village in my constituency, where I currently live. When I first entered the workforce—I worked for the South Western Electricity Board in Plymouth—I had to get a bus, then a ferry and then another two buses to get to work. It took me some time just to get there in the morning and I would have problems if bad weather caused the ferry not to run, as I could not afford a car and therefore could not drive around to the Tamar bridge.
Today I can go downstairs from this place to the station, not look at a timetable and still see a train within a couple of minutes. In many villages, it can take two hours—sometimes days—before there is a train, and some small communities are not served by trains at all. Many work routes are impossible because of the timetables. Although it is clear that a large percentage of the population drive, it is also important to have an alternative. Everyone has periods during which they cannot drive, whether because the car has broken down, because of their age, or medical or judicial reasons, or because they simply cannot get back from the pub as it would be illegal to drive. Unlike in towns, where a local can be found a few hundred metres from home, the same journey in the country is frequently one of a few miles.
Train stations are often at a great distance and transport must frequently be found to go to a station, which means that stations cannot be a solution in their own right. There is simply not the demand for train services in rural areas. My nearest station is 8 miles away. In the neighbouring constituency of North Cornwall, there are no train stations at all. Such forms of transport cost money, especially for those who can least afford them and those who cannot drive.
Although many children in cities can walk to school, the transport infrastructure in the country is far more costly. Children often live a considerable distance from school, and because of their age, they cannot drive. That means a considerable burden on school transport, which often needs to be borne by the local authority before a child can be educated.
Bill Wiggin (North Herefordshire) (Con)
One of the things my local authority—like my hon. Friend’s, it is a poor one—would like is the right to allocate the less popular bus routes with the more popular routes so that bus companies can still make a living. That power needs to be devolved.
Mrs Murray
That is something my hon. Friend the Minister could consider.
There is also a problem with specialist schools, which are often a considerable distance away from where children live. Facilities can also be more difficult to get to. As well as having to travel many miles to the local swimming pool or to see a film at a cinema, we have to look at essential amenities, such as doctors, dentists and hospitals. I worked as a doctors’ receptionist at one of my rural practices for more than 21 years, and I used to try to arrange people’s appointments around the bus timetable, but that was not always possible. My nearest hospital is over the Tamar in Plymouth, and getting there involves a ferry or a long trip around by the Tamar bridge. Google Maps shows it takes one and a half hours to get there by public transport.
Such matters create considerable transport costs for anyone in a rural area, and especially for any local authority that must help people to get around these vast areas. It is simply not financially viable for the private sector to run such services on a regular or affordable basis, as my hon. Friend the Member for North Herefordshire (Bill Wiggin) said. These rural communities, such as my own, need assistance with that extra burden. Last week, I spoke on the importance of food security, and I remind my hon. Friends that it is in these rural areas that we produce our food.
I want to finish with a complaint from one of my long-standing councillors. Councillor Armand Toms from Looe wrote to me recently, although I acknowledge that he must also raise this matter in Cornwall Council. He said in his email:
“Year on year the revenue from the Cornwall Council car parks in Looe is going up hitting the local community and tourism. Yet the town gets very little if nothing in return and has taken on public conveniences which will cost over a million pounds in the next ten years.”
I remind the Minister and my hon. Friend the Member for North Dorset that when town councillors have the ability to increase a precept without being called to account for it, that often has the same effect as raising council tax revenue by the back door. In Councillor Toms’ words:
“I believe that Cornwall Council is treating Looe’s car parks as cash cows.”
Those are his words, not mine. He is a Cornwall councillor, but I point out that he is not a Conservative one.
Steve Double (St Austell and Newquay) (Con)
Does my hon. Friend agree that that is the case right across Cornwall and not just unique to Looe? Newquay in my constituency, which raises more money from car parks than any other town in Cornwall, is just the same. The council keeps putting up the car parking charges, but the town gets very little back.
Mrs Murray
I completely agree. Cornwall Council seems to be taking revenue from its revenue-raising amenities, but offloading the costly amenities we provide in tourist areas on to town and parish councils.
Simon Hoare
Does my hon. Friend share my view that when town and parish councils take on public conveniences, it would be enormously helpful if they became exempt from business rates?
Mrs Murray
That is another thing I fully support. If we are providing a public facility, we should at least help town and parish councils to run them—but I digress.
Councillor Toms has claimed, of the whole issue of car parks:
“With the last minister saying that he would do something about this I was wondering what the new minister will do. Can you ask and see what can be done because there is a problem and coastal towns are being hit?”
It is important to find a funding solution for our transport issues in rural areas, rather than to slam these costs on to the motorist time and again. I have some sympathy with the Minister. As a councillor in the early 2000s, I saw the effects on rural areas of the changes made by the Government of the time, and we must rebalance those changes, although I appreciate that that will take time.
I remind the Minister that many people see the car as an essential in rural areas. I certainly could not do my job without access to one. I ask him simply to evaluate these important issues and to reflect on them when he considers local government funding.
Peter Heaton-Jones (North Devon) (Con)
I congratulate my hon. Friend the Member for Beverley and Holderness (Graham Stuart) on securing this debate and on the fantastic work he has done in this area, particularly on the Rural Fair Share campaign, of which I am very proud to be a patron.
I will address my remarks principally towards North Devon, but will start with some general comments. We must remember from the outset that we are talking about taxpayers’ money, so it is right that we take careful decisions. I get that. All areas of spending have to be reviewed. The Government are making considerable progress in putting the nation’s finances on a sound footing, compared with what we inherited. I get that too and the people of North Devon also get it.
However, this settlement raises considerable concerns for North Devon. First, the overall grant for North Devon District Council is reducing from £4.9 million this year to £4.18 million in the next. That does not sound like a big figure, but it is a significant reduction for a small local authority. I have met the leader of the council, Councillor Des Brailey, and he has left me in no doubt whatever that he faces some very difficult decisions as a result of the settlement.
I want to pick up on a couple of points that have been made by hon. Members on both sides of the House that are relevant to the challenge faced by North Devon District Council. I am delighted that the hon. Member for Workington (Sue Hayman) is co-sponsoring the debate. It is good that it is a cross-party initiative, although the Liberal Democrats are conspicuous by their absence. None the less, the hon. Lady made a very good point about visitors to her area and mine. North Devon prides itself on being a very popular tourist destination, but we get not a penny more for the extraordinary increase in, in effect, the population of North Devon that occurs for several weeks of the year. This settlement does not take account of that fundamental unfairness.
My hon. Friend the Member for North Dorset (Simon Hoare) made a very good point about areas of deprivation and coastal areas in particular, as did my hon. Friend the Member for South East Cornwall (Mrs Murray). He said that we have areas of coastal deprivation that often go unnoticed. I have invited the Minister to visit Ilfracombe in my constituency. I am sure that his response is in the post. In Ilfracombe, I have one of the most deprived wards in the south-west. That is something that North Devon District Council has to deal with, but this settlement does not allow it to do so.
We must also consider the extra money that the Government give to rural areas such as North Devon. Yes, I am delighted that that is being increased nationally to £65.5 million in the next four years, but it is being back-loaded, not front-loaded, and there will be only marginal benefit to North Devon next year. The total figure is considerably lower than the £130 million increase that was calculated by the Rural Fair Share campaign, and it will simply get us to a standstill—it is considerably less than what is required.
The settlement figure for Devon County Council has also been reduced, which is a worry because that will simply add to the pressures on local services and council tax payers in North Devon. To set a balanced budget for 2016-17, Devon will need to make savings of more than £34 million, on top of savings made in the past five years, which amount to £174 million. That is a huge reduction and a huge challenge for Devon County Council.
The two authorities to which I have referred—North Devon District Council and Devon County Council—are both well-behaved, competent, Conservative-controlled councils. That is the point: councillors and officers are working hard to deliver good services and value for money for the taxpayers of North Devon. The Government should be helping them to do that, although I fear that with this current settlement, they are not doing so.
Mrs Sheryll Murray
The system in Devon is slightly different from that in Cornwall because we have a unitary authority and Devon has a two-tier primary authority system. Does my hon. Friend notice that his constituents are having excessive council tax imposed on them by services being offloaded from the district and county authority on to town and parish councils, as is happening in Cornwall?
Peter Heaton-Jones
We could happily spend considerable time on the debate about unitary versus multi-tiered authorities, but my focus is to ensure that whatever system we have presents value for money to council tax payers. That is what is being delivered by Conservative-controlled North Devon District Council and Devon County Council, and the Government need to assist them in that.
Derek Thomas (St Ives) (Con)
I am glad to follow my hon. Friend the Member for Wells (James Heappey), not least because the name of his constituency is easy to remember and pronounce.
Fair funding for rural areas is something we have argued for in west Cornwall for as long as I can remember. The truth is that over successive Parliaments we have received less money per person than many urban areas. Over the years, this has affected our ability to care for our elderly, educate our children, provide public transport, deliver our health services, care for people with severe learning difficulties, police our streets, invest in our infrastructure and deliver council services, including refuse collection, public toilets and maintaining rural roads. All those have suffered as a result of years and years of underfunding.
This matters because my constituency continues to have some of the most deprived communities in the country. This debate, it seems to me, has largely been a competition about what level of deprivation can be found in each constituency. What I can say for Cornwall is that we are so deprived that the whole of Europe recognises it by giving us shedloads of money to try to put it right! It is fair to say that west Cornwall and other Cornish councils probably have the most deprived areas.
Mrs Sheryll Murray
Does my hon. Friend acknowledge that a failure of the European scheme is purely and simply the fact that Cornwall is in the third tranche of getting a handout because we are an area of deprivation?
Derek Thomas
I welcome that intervention, as it raises a point that I was just about to make.
Over the years, rather than give us fair funding, Government grants and generous handouts from Brussels have attempted to address deprivation, but the reality is that unless people can plan properly for the future, get fair funding and properly invest in public services, we cannot address the issues surrounding deprivation and how to lift people out of a poor environment. We need proper funding and we need to know that it is going to be fair to help us to plan for the future.
Three things provide encouragement and convince me that we can address the challenges that a rural area such as west Cornwall faces. The first is that the Government recognise the additional costs of delivering services in more sparsely populated areas. The second is that this Government have begun to address the gap between funding in urban and rural areas. The third is that people who deliver services in Cornwall are now working hard together to a greater extent than at any previous time, and that there is the political will to bring about the necessary changes to secure good services for the future. However, the provisional local government settlement announced just before Christmas threatens that good work and has the potential to undo all the work that has been done to deal with the problem of fair funding for rural areas.
I welcome this Government’s recognition of the additional costs of delivering services in more sparsely populated areas. I welcome the extra £65 million made available through the rural services delivery grant. By the Government’s own calculations, however, that should be £130 million. The truth is that rather than close the gap in funding between urban and rural areas, the provisional Government funding settlement widens the gap over the next four years, which is a disaster for areas such as mine. Cornwall Council, which Cornish MPs met on Friday morning, has the opportunity to charge a 2% levy, but it learned that 75% of that would be taken up just to meet the commitment to the living wage. It has the power to increase council tax by 4% each year.
Mrs Murray
Does my hon. Friend agree that the comment from Cornwall Council was quite strange in the light of the fact that last year the Liberal Democrat/Independent-led Council put out a press release claiming to be paying its staff the living wage?
Derek Thomas
That does seem peculiar, but this Government have introduced a generous living wage that will give many people the opportunity to earn more money and increase household incomes.
The reality is that if we ask council tax payers to contribute an extra 4% each year, without taking into account any increases that town and parish councils might have to include, it will have a detrimental effect on one of the poorest areas of the country. For years, the Conservative-led Government and the Conservative-led Cornwall Council froze council tax, but unless this Government properly address the issue of underfunded rural areas, councils will have little choice but to increase council tax to the max. Thus my constituents, many of whom are among the poorest in the UK, will have to pay 20% more in council tax in 2020. I said earlier that Cornwall has the leaders and the political will to reform public services. However, true reform requires extra cash, not less, if councils are to improve services today and save money tomorrow.
Now is the time to give fair funding to councils such as mine, rather than increasing the gap further. I ask the Government to reconsider the settlement so that councils such as mine have the money they need to deliver the services we need, and so that they feel valued and part of the optimistic future in which we all want to share. I say to the Government: please do not leave Cornwall behind any longer.
Mr Reed
The hon. Gentleman is right to say that there is a decline in wages relative to the cost of living in those areas. The Labour party is looking for fair funding across the Government, and I will say more about that later if he will allow me.
Pulling all that together, we are seeing a toxic cocktail of rising fares for worsening public transport, inaccessible public services, demand for services rising faster than funding, fewer good job opportunities, falling wages and soaring housing costs. People are being priced out of living and working in rural areas.
Mrs Sheryll Murray
I think I am hearing the hon. Gentleman confirm that Labour would reverse the changes it made in the funding formula in the early 2000s. Am I correct?