Rural Upper-tier Local Authorities
House of Commons · Westminster Hall · 2 Sep 2026 · 32 speeches · Official Report
[Paula Barker in the Chair ]
I beg to move, That this House has considered Government support for rural upper tier local authorities. I am a vice-president of the Local Government Association, and I am extremely worried about the widening gap in opportunity, social mobility and economic growth between rural and urban areas. Rural areas are being held back and the futures of rural children are being limited by public services that are underfunded and overstretched, lamentably slow digital connectivity, the lack of public transport, and urban-centric perceptions based on misunderstandings about the nature of rural life. The last local government finance settlement laid bare that neglect in financial terms. It was a stark admission from this Government that their plan is to strip funding from rural areas to improve services in urban ones. The Rural Services Network has calculated that urban councils will receive 32% more funding per head than rural councils next year. Meanwhile, rural residents pay on average 17% more council tax per head than urban residents, out of lower than average wages, to plug the gap, yet the cost of delivery means that they receive a poorer public service. For Shropshire council, the funding situation is particularly grave, following 16 years of catastrophic management by Shropshire’s Conservatives. When the Lib Dem administration took over in May 2025, Shropshire was in the most difficult financial position of any council in England. The recent Chartered Institute of Public...
I am sure that the issues in Shropshire that the hon. Lady mentions are the same as those that we in Cornwall have experienced. Does she agree that the move to a mayoral share of income tax is not a detriment to non-mayoral areas like ours but an opportunity to reset the model? We have seen integrated settlements and money being thrown at mayoral regions, but this is an opportunity to turn the taps off for those regions and turn them back on for areas like ours that have not proceeded with a mayor.
The hon. Gentleman makes a good point. I would need to see the detail of that proposal and what it would mean. Shropshire is already a unitary authority and is essentially at the bottom of the list for a devolution plan, so that seems too far off. There seems to be no prospect of stabilising the financial situation until there is a firm plan to ensure that the powers needed to turn the area around, and the resources to go with them, are firmly in place. We urgently need clarity on that. The hardship and austerity in rural areas has come about largely as a result of the removal of remoteness as a factor when calculating what it costs for a rural authority to deliver services across a vast area. The County Councils Network estimates that that has removed £300 million from its members’ budgets-an amount that the Government expect to be made up by increased council tax. Shropshire council has been squeezed at both ends-first by years of Conservative maladministration, and then by Labour cutting its funding, despite the obvious need -and it is far from alone. Rather than tackling the problem head on, the Government have underfunded rural councils, which has perpetuated rural deprivation. That is particularly acute where people lack access to services, and it is hidden, unlike urban deprivation. While door-knocking in my constituency, I met a delightful elderly gentleman living in a small cottage, and I was astonished to also meet his grandson, who was apparently living in his...
It is a pleasure to serve under your chairmanship, Mrs Barker. I thank the hon. Member for North Shropshire (Helen Morgan) for securing this important debate. Like her, I am passionate about local government. I find myself in Cornwall corner here today, but I am proud to be a Member from Norfolk. I stood for Norfolk county council way back in 2009 and lost in a bad year for my party. I stood again in 2013 and lost by a single vote, though I was delighted to be elected in a by-election six weeks later. I served on the county council for 13 years and only resigned when I was elected as an MP. It gave me a real understanding of the complexity and difficulty involved in delivering services across a wide geographical area such as Norfolk. The London borough of Islington is the smallest upper-tier authority in the country, with statistics not dissimilar to other urban upper-tier councils. It has a population of about 223,000 people, covers less than 6 square miles and has a population density of 15,000 people per square kilometre. By contrast, Norfolk, where my constituency is located, is home to 940,000 people-nearly four times as many-but covers more than 2,000 square miles and has a population density of 175 people per square kilometre. On top of that, the median age in Islington is 33, while in Norfolk it is 10 years higher. That is because-I am slightly in danger here-Norfolk is of course the most beautiful county in the country and many people rightly choose to retire there....
The hon. Gentleman is making an excellent speech, and he is absolutely right about road mileage. Devon has to maintain over 8,000 miles of road, which is the most of any upper-tier authority in the country. Does the hon. Gentleman agree that partitioning Exeter off from the rest of Devon-from the rural Devon hinterland-will strip away the tax base from Devon county council, meaning it will be unable to provide alternative services that would otherwise power growth?
I understand the Devon road network, which is similar to Norfolk’s-Norfolk and Devon’s councils were paired-and there are obvious challenges with it. I am sure the Minister heard the hon. Gentleman’s point about local government reorganisation, but I will not comment on it. I can barely understand Norfolk’s proposals, let alone Devon’s. As I was saying, road mileage, travel times, population age and the number of communities that a council serves are all crucial. There are 72 villages and three market towns in my constituency; they are all different, with unique challenges but also unique opportunities. Secondly, the Government need to do more around the special educational needs and disabilities crisis. I appreciate that SEND is somewhat outside the Minister’s brief, but it is a crucial issue for councils like Norfolk’s that are trying to meet the growing cost of SEND while delivering other services. Thirdly-this is more Norfolk-specific-there needs to be sufficient funding for the reorganisation of Norfolk’s local government structures. The objective should be to ensure that the money spent on creating new authorities does not come at the expense of the services that existing authorities currently provide. I am a huge supporter of devolution and local government reorganisation in Norfolk, but it is expensive and time-consuming and, frankly, councils already have enough to worry about at the moment.
It is a pleasure to serve under your chairship again, Mrs Barker, after a bit of a break since the last time. I thank my hon. Friend the Member for North Shropshire (Helen Morgan) for setting out so well the funding challenges facing upper-tier councils. She quite correctly articulated the challenges in relation to special educational needs provision, to which I could add home-to-school transport and, in the case of Oxfordshire, a population that is not just ageing but growing. Social care accounted for 52% of Oxfordshire county council’s budget in 2024-25. I want to focus my remarks on perhaps the most visible public service that councils provide, which is highways. For the current financial year, Oxfordshire’s Government allocation for highway maintenance is £33.5 million. This funding must maintain all highway assets in Oxfordshire, including 3,009 miles of carriageway, nearly 2,000 miles of footways and cycleways, 3,500 bridges and public right-of-way structures, 168,000 drainage assets and 124,000 electrical assets, such as street lighting, traffic signals and safety infrastructure. Oxfordshire county council was graded “Green” in the spend category of the Department for Transport’s recent exercise in respect of the Government’s local road maintenance ratings. That means the council invests “significantly” in maintaining its roads and goes beyond what the Government funds. Independent modelling shows that in Oxfordshire around £50 million per year is needed simply to...
Meur ras -it is an honour to serve under your chairship, Mrs Barker. I congratulate the hon. Member for North Shropshire (Helen Morgan) on securing this important debate. I want to focus on SEND and home-to-school transport. On SEND, Cornwall is the 11th lowest funded of 151 local authorities, receiving less than half the per pupil funding of Kensington and Chelsea. Over the last eight years, the number of our pupils with an EHCP has almost doubled, but the delays in issuing EHCPs are far longer than average. In Cornwall, two thirds of those waiting for an EHCP wait for more than 20 weeks, compared with about 50% in England, meaning more stress and uncertainty for Cornish children and their parents. In a very large, long and remote coastal region, the additional costs of transport show up persistently in every aspect of Cornish life. Cornwall council’s expenditure on home-to-school transport has increased by nearly 300% over the past seven years-a far steeper rise than for our urban counterparts. When it comes to funding more broadly, being a coastal community with some of the UK’s finest beaches is actually a double-edged sword; in fact, it could be argued that we are damned by our natural beauty. Significant in-migration by wealthy English retirees not only places additional pressures on healthcare and our housing market but masks the true extent of deprivation in Treasury funding models. In my constituency, the average weekly wages in Camborne, Redruth and Hayle are...
The hon. Gentleman is making an important and fundamental point: everything costs more when it is spread out. For example, bin collections cost a huge amount more for unitary authorities. Home-to-school transport is not just for children with SEND but for children who cannot catch the bus to school because there is no bus. Everything costs a vastly significant amount more than when people just live down the road. Does the hon. Gentleman agree that it is really important that that is reflected in Government funding formulae, because it is crippling our councils?
I do agree with the hon. Lady. I cannot believe that in the 21st century it is beyond the wit of man or woman to calculate the major costs that affect our rural and remote coastal areas compared with the costs for our urban counterparts. We are not trying to deprive the services available in urban areas; it is about raising the level of services for remote coastal and rural communities to the same standard. That brings me back to my central point. Despite the rising costs and demands, Cornwall is being asked to do far more with far less, which is why we need a comprehensive, non-mayoral, Cornwall-only devolution deal that allows us to overcome some of the challenges of life in the Duchy.
It is a real pleasure to serve under your chairship, Mrs Barker. I thank the hon. Member for North Shropshire (Helen Morgan) for setting the scene incredibly well. It is good to see another supreme example of her fighting for her constituents, as she always does. As the Member of Parliament for Strangford, a largely rural constituency, I am acutely aware of the challenges that face those in our rural communities. I know the Minister is not responsible for that, but I am here to support the hon. Lady as she puts forward the case on behalf of her constituents, and I look forward to the Minister’s response. It is nice to see him back in his position again-he was a Minister before and then an active Back Bencher, and he is back again as a Minister. Well done to him for all his efforts. There are growing concerns about the level of support being provided to upper-tier rural authorities in England. England’s largest councils are expected to receive just 2p in Government funding for every £1 of their rising costs over the next three years. This comes as funding is increasingly being directed towards urban areas, leaving local rural authorities facing an estimated £11 billion funding gap. The consequences could be significant, with rural councils in particular likely to have to reduce and make cuts to everyday services such as libraries and community social care. Other hon. Members have spoken about those issues, as will others after me. Analysis by the County Councils Network shows...
It is an honour to serve under your chairship, Mrs Barker. I thank the hon. Member for North Shropshire (Helen Morgan) for securing this debate, which is important and relevant to me. I will probably shorten my speech a little, as the Minister is getting a double dose of Cornwall this afternoon-I apologise for that. We underwent major local government consolidation early in Cornwall. We became a unitary, from a county council and six districts, in 2009. We are now the third largest unitary in the country by population and the fourth largest by area, but the 12th least densely populated of the 62. That creates quite unique opportunities, but also challenges. I want to talk a bit about third-tier councils, because the establishment of our large unitary coincided with austerity. The council withdrew from quite a lot of services-all but the most statutory, really. That meant that the third-tier town and parish councils stepped up and took the reins, preventing the sell-off and closure of all sorts of things, such as green spaces, toilets, libraries and leisure centres-so much of the infrastructure that made our town special. It is great having services run by the people who live there and use them, but there are issues that need sorting out. When third-tier councillors’ councils grow, they still get no pay or expenses. We also have conduct issues clogging up the desks of upper-tier council monitoring officers, who do not have the teeth to sort them out. Precepts in towns have...
It is an honour to serve with you in the Chair, Mrs Barker. I congratulate my hon. Friend the Member for North Shropshire (Helen Morgan) on securing this important debate. My very good friend, my hon. Friend the Member for Didcot and Wantage (Olly Glover), warned earlier against pitting different parts of the UK against each other. At the risk of flying in the face of that advice and angering the hon. Member for South West Norfolk (Terry Jermy), I will just say that West Dorset is the most beautiful place to live. My rural community shares a lot of the same difficulties as everyone else here. My constituents are spread across small towns and villages, so distances are longer, there are fewer service providers and councils have fewer opportunities to achieve economies of scale. Almost half of Dorset’s residents live in areas that are among the 20% most deprived nationally in access to services. Whether it is GPs, dentists, post offices, shops, primary schools, access is much more difficult than in urban areas. As has also been highlighted, waste collection is difficult, vehicles have to travel further, highways teams have to cover more miles, social care workers have to spend more time travelling with patients, and a child with special educational needs has to travel a larger distance to reach the right school. At the same time, Dorset has one of the oldest populations in the country: 31% of residents are aged 65 or over. Although I have repeated it many a time, and it may...
It is a pleasure to serve under your chairship, Mrs Barker. I congratulate my hon. Friend the Member for North Shropshire (Helen Morgan), and I declare an interest as chair of the all-party parliamentary group for rural business and the rural powerhouse. This Government have rebuilt the local government funding formula and launched an ambitious devolution agenda, both in the name of fairness and moving power closer to the people. I question how that is working. Ministers say that the new funding formula matches money to need, and that by the end of the settlement, the most deprived places will receive 45% more funding per head than the least deprived. Nobody disputes that deprivation matters, but measuring deprivation in rural areas is not straightforward. According to the County Councils Network, county authorities will receive only £345 per head in grant funding against a national average of £526, and will therefore have to find more than 90% of any budget increase from council tax alone. That means they will receive roughly 2p of any additional Government money for every £1 of new cost pressure, while metropolitan boroughs will receive 42p. That is an enormous difference. Although individual councils vary, the Rural Services Network shows that rural residents already pay 70% more council tax per head than urban residents, despite lower wages on average. That gap is projected to widen every year of this settlement. As others have pointed out, the Government removed the...
It is a pleasure to serve with you in the Chair, Ms Barker. I thank my hon. Friend the Member for North Shropshire (Helen Morgan) for securing this important debate. Before moving to rural South Devon in 2007, I had spent all my life living in and around major cities: Edinburgh, Sheffield and then London. After nearly 20 years living in the rural south-west, I can honestly say that I had previously not understood rural life because I had not lived it. I have since come to realise that the rural-urban divide is possibly one of the deepest divides in our country and one that is too often overlooked, especially by Governments made up of city and urban MPs who simply do not understand the reality of rural communities and fail to see the deprivation that lurks behind the hedgerows. Those communities are often forgotten when spending decisions are taken despite a set of circumstances that mean we desperately need the Government’s financial backing. Incomes are lower due to the older average age, jobs are often seasonal and low-waged, people in rural areas travel almost twice as far as those in urban areas, and there is often no public transport. Healthcare is a challenge because community services have been cut, hospitals are miles away and hospital transport has all but disappeared. High-speed internet is crucial when services are scarce, yet broadband connectivity lags far behind urban areas. Banks, pubs and post offices are closing, hollowing out communities and increasing...
The point of combined authorities is to derive economies of scale from placing urban and rural areas together. Some of those economies of scale can be driven by the density in the urban area. Does my hon. Friend agree that it makes no sense to split up the urban and rural areas in the way she describes?
I absolutely agree. It makes no sense to any of us in Devon. I have spent the entire summer listening to constituents who are deeply distressed about what has happened, which leaves them in a rump rural local authority with no option for economic growth or regeneration.
As a part-Devon Member of Parliament-the other part of my constituency is in Somerset-I entirely agree with what my hon. Friend is saying. The part of my constituency in Devon is 800 square miles and will form just part of an enormous rural authority. Does she agree that that authority does not have the fiscal power to sustain itself?
I absolutely agree. The Government ignored local voices and went with the proposal that came fourth out of five in a public consultation, but was backed by Labour council leaders and Labour MPs who had the ear of Ministers and wanted to expand their cities. None of my constituents want it. I have spent the whole summer listening to distressed residents, as has my neighbour, the hon. Member for South West Devon (Rebecca Smith). The chosen proposal was a blatant prioritisation of economic growth for the cities of Plymouth and Exeter at the expense of the economic and social cohesion of rural Devon. How do the Government expect this council to be financially viable when they deem remoteness irrelevant to the delivery of every service except adult social care, and when no one can even work out where the authority could be based? How can rural Devon expect growth in every postcode when there is clearly no consideration of the economic growth potential for rural Devon in the chosen proposal? The Prime Minister talked yesterday about supporting rural areas and not creating a two-tier country, but the Government have created a two-tier Devon. I urge the Minister to listen to the many Devon MPs and the local people, go back to the drawing board on the reorganisation in Devon, look at the alternative options that were on the table, and pick one that will not leave rural communities struggling even more than they are now. If we are to have any hope of bridging the urban-rural divide, a...
It is a pleasure to serve under your chairmanship, Mrs Barker, and I welcome the Minister back to his place. I commend the hon. Member for North Shropshire (Helen Morgan) for securing this important debate and giving us the opportunity to speak about the rural areas that this Labour Government are neglecting. My constituency is home to a handful of farms and the beautiful Lee Valley regional park. Although it might not be the most rural, I am well aware of the pressures faced by rural communities, which have been made clear by hon. Members across the Chamber today. Having started off with the infamous family farm tax, the Government are now moving on to implement the unfair funding review. This change in the funding formula for local government seems to have been designed with the express purpose of stripping away funding from rural areas just to hand it to urban ones.
Does the hon. Member recall the enormous slashing of the budget of Cornwall council under his Conservative and Liberal Democrat coalition Government?
Lots of difficult decisions had to be made. I politely say to the hon. Gentleman that his party is in government now. We will see the mettle that they are made of in the coming months, when they have to make difficult decisions to produce their Budget, and we will also see how that goes down with the British people outside this place. Many rural councils face real challenges across the board, and now they are expected to cope with even fewer resources. In my area of Hertfordshire, a semi-rural local authority, the county council is facing a reduction in funding of around £50 million a year. That is thanks to this Labour Government, despite the council already being under extreme pressure from an unfavourable SEND funding formula. Under that formula, Hertfordshire receives one of the lowest funding allocations per head. It would receive millions more if it were funded at the same rate as other areas. When it comes to SEND, rural authorities lose out. Inner London boroughs receive thousands of pounds more in high needs block funding per pupil. For example, a child in Camden is allocated four times as much as a child in Yorkshire. It should not matter where someone is born in the country; children with special educational needs deserve the same resources. I am sure that all hon. Members from right across this House can agree with that. Similarly, rural authorities have been ignored throughout this Government’s top-down local government reorganisation. As we have seen in...
If His Majesty’s Opposition are so unhappy about the local government reorganisation, why is there not a single Opposition Member here to make that point other than him?
I thought someone might make that point in this debate. I have been in debates where no Labour or Liberal Democrat MPs have turned up. When I go out and speak to my constituents about how, when they turn on the TV, the Chamber is not full, I explain to them that there are many calls upon Members’ time. I gently say to the hon. Member that some constituents will watch debates that he does not attend and be unhappy with that, so we could maybe think about that before we make interventions on that topic. As I was saying, this Government’s top-down local government reorganisation has seen rural communities left behind. Rural communities and authorities have also been hugely hit with a high increase in housing targets, forcing them to build over the green belt and ruin the character of their areas. They have increased by up to 487%, while many Labour-run urban areas have seen their targets decrease. The new Prime Minister likes to talk about devolving power to every postcode, but the only changes that people in rural areas have seen are money and power being taken away from them. They are the people that this Labour Government should champion: the hard-working people who have too often been left behind. Instead, they are being sidelined and ignored. The Government need to take time to actually listen to the rural community and protect their way of life. I may not represent a very rural part of this country, unlike other hon. Members in this room, who have so passionately spoken...
It is a pleasure to serve under your chairmanship, Mrs Barker, and to hear the debate and the passion that Members have for their areas. I quite liked the county competition for the most beautiful part of England, but I am sure that we can agree that England is magnificent coast to coast, and we should all celebrate that. I will respond to the debate in due course, but I want to start by laying out some of the differences. We are using common language for things that are very different; I think that we are conflating devolution and the powers that will be devolved with the fair funding review and the funding that goes to local authorities. In some cases, there is no clarity on what a regional authority will do to the local authority and community governance, whether that is neighbourhood governance or town and parish councils. In this debate, it has become one and the same. I do not criticise that, and I recognise why that happens. We are all here to represent places and not units of government, so we care about whether our communities are getting the resources needed.
On that specific point, part of the reason why there is a conflation of devolution and the local government funding settlement is that, because our local councils in some areas are so deprived of funding, they have to get funding from something like a visitor levy, which would not typically be allocated for that, in order to supplement the services they need to provide. That is potentially why there is a mix-up of views about devolution and the local government settlement. Does the Minister recognise that point?
In a sense, I recognise that there will be differences of opinion, depending on which local authority and what part of the country Members represent, about whether the fair funding review fully picks up all the particular circumstances. There might be more agreement on the sufficiency of local government finance. Whatever the allocation across the board, the fair funding review is intended to distribute it in the fairest possible way and in a transparent way, so that Members and councillors can see where the money is going to. Since coming to power, the Labour Government have delivered long-overdue reforms to council funding through the first multi-year local government settlement in a decade. In doing so, we have delivered transformational changes to how councils are funded, which the public, our local government partners and Parliament have long called for. We have delivered on our commitment to give councils greater certainty and flexibility over their funding, ensuring that resources are fairly aligned to local need and simplifying the funding landscape by ending wasteful competitive bidding, which we all recognise pits one area against another. The Government also have a very important role to play as an equaliser for local government income. During the course of the debate, I heard references to the amount of grant that individual councils get, and one grant total being compared with another. I want to be clear that the fair funding review is not intended to give every...
The Minister says there is an area cost adjustment, and yet the leader of Devon county council says that Devon lost £14 million because of the rural services delivery grant, which was removed. How can those two things be true? If a grant that takes account of the fact that it is more expensive to deliver services in a rural area is removed and the council is £14 million short, the extra cost of rural services delivery has not been recognised.
We have always taken the view that the rural services delivery grant had, to put it mildly, a weak evidence base to support it. A political decision was made when the coalition Government came in and the grant that was given to largely urban authorities was taken away with almost no notice at all. It was replaced by the rural services delivery grant, but without the evidence base to support where it went to. Whatever criticism is applied to the fair funding review, what cannot be criticised is the evidence base that sits beneath it, because it is the best available data. We are laying the foundations for reform more broadly. The multi-year local government finance settlement allows for £4.6 billion of additional funding to be available for adult social care in 2028-29, compared with 2025-26, including £500 million for the first ever fair pay agreement. The Government are driving the biggest transformation in children’s social care in a generation, with the families first partnership programme backed by nearly £3 billion of investment over four years, including a historic £2.4 billion over the multi-year settlement. That will support local authorities, police and health partners to provide families with the right support at the right time, shifting the system from expensive statutory provision to early intervention and prevention services. The Government recognise that the current SEND system is not working for families, children or local authorities, and we have set out...
I thank all hon. Members who have come along and made excellent speeches-particularly team south-west, who have turned out in force. They all highlighted the difficulties in delivering services in sparsely populated areas with vast distances to travel. They spoke about the impact on highways funding, the importance of generating economic growth, the cost of delivering SEND, and the proxy creation of district councils through the re-empowering of town and parish councils to deliver things that the unitary council can no longer afford to deliver because they are not a statutory requirement. They were really good speeches. I am very disappointed that the Minister wound up with a speech that kind of told us that everything is actually fine. On the day that the local government finance settlement was announced, I sat on the Opposition Benches, along with all my colleagues, without a clue about what my local authority had been awarded because it was not findable, we had not been told and it could not be googled, yet everyone on the Labour Benches appeared to know what their settlement was and congratulated the Minister on its delivery. That is symptomatic of a pattern of this Government. They tell rural areas, “Everything is fine. It looks pretty. Go away and stop worrying, and actually, we are going to focus on urban areas.” We all recognise that urban areas need investment and are not thriving as they should be-this is not about pitting one area against another-but rural areas...
Sitting suspended.