Commons Sense

House of Commons · Ministers' Questions

Regional Inequality: Local Authority Funding

Monday 22 February 2021 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 4 Not answered 0

Key points

  • The local government finance settlement delivered a 4.6% rise in core spending power to councils across the country.
  • The levelling-up fund is worth 4 billion, invested in infrastructure projects such as bypasses, railway station upgrades, museums, libraries, high streets, and town centres.
  • The UK shared prosperity fund aims to level up and create opportunity in places most in need, including ex-industrial areas, deprived towns, and rural communities.

Topics (select to filter)

Questions & Answers

Q1 Fay Jones
Local Government
Context

The question arises from the need to ensure that local authority funding addresses regional disparities effectively.

Question

What steps he is taking with Cabinet colleagues to ensure that local authority funding is used to tackle regional inequality.

Answer from Luke Hall

This month, the local government finance settlement passed through this House, delivering a 4.6% rise in core spending power to councils across the country. For England, we are committed to putting funding where there is relative need, irrespective of location, which is why councils in the most deprived areas receive 16% more in grant funding than least deprived areas.

Partly answered

Not addressed: The answer does not provide specific steps or actions taken by Cabinet colleagues.

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Q2 Dan Jarvis Lab Barnsley North
Economy Brexit
Context

South Yorkshire previously benefited from European Union and local growth funds, which have now ended. The concern is to ensure the new levelling-up fund provides similar support.

Question

Here in South Yorkshire, we used European Union and local growth funds to support our economy, attract investment and create good jobs. Now that they have come to an end, can the Minister guarantee that their replacements—the shared prosperity and levelling-up funds—will give local leaders the flexibility and capacity to invest that money to rebuild our communities?

Answer from Luke Hall

I thank the hon. Gentleman for his question and for the constructive way in which he continues to work with the Government. The levelling-up fund is worth £4 billion, invested in infrastructure such as new bypasses, railway station upgrades, museums, libraries, high streets and town centres. We will publish a prospectus soon, providing £220 million of additional UK funding next year for communities to pilot programmes in preparation for the UK shared prosperity fund.

Partly answered

Not addressed: The answer does not provide guarantees but offers information about the funds and future prospectuses.

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Q3 Fay Jones
Education Wales Local Government
Context

Powys County Council is considering closing four rural schools, due to historically low local government allocations from the Welsh Government and unspent UK Government funding.

Question

Powys County Council has historically received one of the lowest local government allocations across Wales from the Welsh Government. As a consequence, the council is considering closing four rural schools in Brecon and Radnorshire, deepening rural inequality further. Will the Minister confirm that the Welsh Government have the funding to prevent this and use the extra UK Government funding given as a result of coronavirus?

Answer from Luke Hall

I thank my hon. Friend for her question. We have given Wales £5.2 billion of guaranteed up-front funding this year and an additional £650 million for the Welsh Government to support public services affected by covid-19. Local government is a devolved responsibility, so it is for the Welsh Government to decide how to use these substantial funds.

Partly answered

Not addressed: The answer does not confirm whether the funding can prevent school closures but states that decisions are up to the Welsh Government.

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Q4 Kate Hollern Lab
Economy Parliamentary Procedure Local Government
Context

Details of the shared prosperity fund have not been fully published, raising concerns about its ability to tackle regional inequality effectively.

Question

Few details of the shared prosperity fund have been published. Will the Minister guarantee that the fund will be used to tackle regional inequality as intended and that no region will lose out or waste time on competition among councils?

Answer from Luke Hall

I can certainly assure the hon. Lady that the UK shared prosperity fund will help level up and create opportunity right across our country in places most needing it, be they ex-industrial areas, deprived towns or rural communities, and for people facing labour market barriers. The fund operates UK-wide using new financial assistance powers from the United Kingdom Internal Market Act 2020, with funding reaching about £1.5 billion a year.

Partly answered

Not addressed: The answer provides assurance but lacks specific guarantees and details on regional losses or competition among councils.

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