Contribution
I refer the House to my entry in the Register of Members’ Financial Interests, as a former county councillor.
It is safe to say that I have not been inundated with emails praising this Budget or crediting it for tackling the thorny issues that my constituents face. Those eligible will welcome the £100 energy bill payment going towards their soaring bills, but the more than 10,000 of my constituents reliant on heating oil will wonder where they are going to find the rest of what has often been a £500 price hike on their oil bills. They will also be asking why the Government have cut VAT for those who rely solely on electricity but are happy to rake in double the VAT receipts from others who face those soaring bills. Removing VAT on those bills would put another £50 back in the pockets of those who have to fill a 1,000 litre tank. The Government are benefiting from a VAT windfall, and it is time that they gave that back to the people suffering from these higher costs.
Rural communities in general are struggling as a result of this Budget. In particular, schools are close to their crisis point in too many villages in North Norfolk. Earlier this year, Corpusty primary shut its school gates for the last time. It was heartbreaking for the families affected, and for the children, who were losing the only school that most of them had ever known. We fought tooth and nail against that closure—unlike, I should say, either the Conservative or Reform administrations at County Hall, who stood idly by. I warned anyone who would listen that Corpusty was the canary in the coalmine. Its fundamental challenges were not unique, and it was an indicator of a worrying trend that needs to change. I am deeply fearful of what comes next, because more school leaders and parents are telling me their concerns about their local schools.
For all their best efforts, headteachers just cannot make the books balance. It is not their fault; they are being failed by a funding formula that simply does not appreciate the realities of rural life and the importance of rural schools to their communities. In places where there is a fall in the number of children and young people, schools are crying out for a funding package that can help them stay afloat and adapt to a difficult financial and demographic environment. They should feel reassured by the falling rolls funding mechanism, which triggers a £140,000 payout to local authorities through the dedicated schools grant whenever there is a drop of 10%, year on year, in an area’s pupil census. Despite that drop being the reason why that money is coming forward, there is no requirement for it to be spent on those schools, or the issue of falling rolls. It is clear that both sides need to change their processes. The Government need to be more prescriptive about ringfencing, and I will argue that it is not an outlandish ask for falling rolls funding to be dedicated to falling rolls. On their side, the local authority cannot just use this as another sticking plaster to cover educational funding crises.
If we do not get a grip on the schools crisis, we face challenging times in our rural communities. If we lose the schools, we lose the working-age population. If we do not fund rural schools properly, whole communities suffer. If there is no local school, the area is not a viable place for a young family to live. That means no one of working age to do the inherently rural jobs in farming, or in the energy industry or defence. In a community without working-age people, there is no one to staff the doctor’s surgery, provide care or even pour a cup of coffee on a Monday morning.
We must act now if we want our cherished rural and coastal communities to flourish, and if there is to be good growth in every postcode, there must be cross-governmental support for small rural schools. The Government’s goals—not just for education and economic growth, but for transport, housing, climate change, food security and even defence—all depend on a vibrant future for our rural communities, yet this Budget’s measures are just another example of the Government working in silos, which is not working for our rural areas. It is time to re-establish hope for rural communities by backing small schools.