Local Government Funding 2025-03-03

2025-03-03

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Questions & Answers

Q1 Direct Answer
Andrew George LD
St Ives
Context
Cornwall council has faced financial challenges and is at risk of bankruptcy due to the national insurance contributions hike. The area also has urban levels of deprivation and a super-ageing population.
I am grateful to the Minister for that response. He will be aware that since the Conservatives took control of Cornwall council four years ago, they have transformed that authority from being financially sound to staring down the barrel of bankruptcy. Cornwall is a rural authority with urban levels of deprivation and a super-ageing population. What assurance can the Minister give that, through the funding formula and plans for local authorities, the Government will have due regard to the escalating costs for these local authorities, not least as a result of the national insurance contributions hike?
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.
Assessment & feedback
Response accuracy
Q2 Partial Answer
Kevin McKenna Lab
Sittingbourne and Sheppey
Context
The constituency includes five of the ten most deprived localities under Kent county council, where the council struggles to understand and resource these needs properly.
The 48th most deprived locality in England and five of the 010 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?
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.
Assessment & feedback
The Minister did not provide assurance specifically about ensuring adequate resourcing for deprived areas but instead discussed the broader rationale for reorganisation.
Changing Subject To General Benefits Of Reform
Response accuracy
Q3 Partial Answer
Kevin Hollinrake Con
Thirsk and Malton
Context
The Deputy Prime Minister stated that elections would be postponed from May 2025 to May 2026, while the Minister in a written parliamentary question said new unitary governments will go live in 2027 or 2028.
The Minister mentions local government reorganisation. On 5 February, the Deputy Prime Minister stated: “We are postponing elections for one year, from May 2025 to May 2026”—[Official Report, 5 February 2025; Vol. 761, c. 767.] but on 17 February, the Minister, in a written parliamentary question, said that “new unitary…government will be established or go-live in 2027” or 2028. Will the Minister confirm that these elections are not being postponed, and that they are, in fact, being cancelled for up to three years, meaning that councillors will serve terms of up to seven years? Will he also confirm that the Deputy Prime Minister may have unintentionally misled the House, and will he correct the record?
I can start by confirming that the Deputy Prime Minister did not mislead the House. The Opposition would do well not to muddy the waters. They know better than anybody what local government reorganisation means. Over the past few years, when they were in government, they postponed 17 sets of elections to allow reorganisation to take place. Although elections are being postponed in nine councils, 24 sets of elections will still take place this year.
Assessment & feedback
The Minister did not directly confirm or deny the postponement or cancellation of elections but provided context about previous election postponements by the opposition party.
Changing Subject To Past Actions Of The Opposition
Response accuracy