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Rural Councils: Funding

29 November 2023

Lead MP

Chris Loder

Responding Minister

Simon Hoare

Tags

EconomyTaxationEnergyBusiness & TradeChildren & FamiliesLocal Government
Word Count: 13464
Other Contributors: 13

At a Glance

Chris Loder raised concerns about rural councils: funding in Westminster Hall. A government minister responded.

Key Requests to Government:

Loder called on the Minister to investigate discrepancies like £166 million going to five London boroughs alone despite a supposedly fair funding formula. He urged for fundamental reform of the frozen funding formulas to address the financial difficulties rural councils face, ensuring that fairness is realised and preventing further cuts in essential services.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

Opened the debate
Chris Loder highlighted the funding challenges faced by rural councils in England, noting that ten million people live in rural areas where residents earn on average £2,000 less than those in urban areas and face a double national average for fuel poverty. He mentioned that rural council tax is 20% higher per head compared to urban areas, with Dorset Council receiving just £700,000 from central Government funding, which accounts for only 0.2%. Loder also discussed the issue of business rates and social care precepts, noting disparities between rural and urban councils such as London boroughs receiving far more in grants.

Government Response

Simon Hoare
Government Response
Acknowledged the importance of levelling up policies for rural areas and expressed support for reforming the funding formula. Emphasised the need to address challenges collaboratively between departments, such as those related to an ageing population, home-to-school transport, and special educational needs (SEND). Pledged ongoing efforts to work closely with other government departments to use taxpayers' money effectively in delivering necessary services.
Assessment & feedback
Summary accuracy

About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.