Local Government Finance Settlement

Baroness Donaghy Excerpts

Thursday 15th December 2016 Lords Chamber

[Baroness Donaghy (Lab)]

My Lords, perhaps I may make a couple of points and then ask a question in relation to the schools funding announcement made earlier this week. First, it is always the depths of December when we get the local government finance announcement, and no doubt we will have a debate on it in the depths of January. I do not know if this is absolutely inevitable, but in the six years that I have been in the House, it is during those two months when local government finance announcements are, shall I say, slipped out.

Secondly, the £240 million announced for the adult social care support grant would be just about enough for the London Borough of Southwark where I live, so I do not know how everyone else is going to manage. We are talking about a much larger scale and it is quite wrong of the Government to pretend that that relatively small amount of money is going to make any difference whatever. I think that my noble friend indicated that it was about improving social care; I do not think he said that it would not do anything for social care.

Finally, the council tax precept is probably one of the most cynical political moves I have ever seen. Councils that are able to raise money without actually losing an election are probably those which are the least in need, while those that are most in need would not dare to try for the precept. It is wrong to pretend that this is about local autonomy when it is about the Government hiding behind local authorities for their total abnegation of responsibility.

My question is around the schools funding announcement. If I remember rightly it stated that some schools would get more but others—those in larger urban areas, it turns out—will have the equivalent of a 3% cut in real terms. If inflation is included, it will be a real terms cut of 5%. Can the Minister tell the House how that funding announcement for schools relates in general terms to the local government finance announcement? Has any thought been given to how the two will interrelate, or will it be a double whammy for some local authorities?

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Baroness, Lady Donaghy, for her questions. In terms of where she is sitting, she is much closer to the noble Lord, Lord Beecham, than I am and I apologise if I misheard the point that he made. It appears that that may possibly be the case.

As to these announcements being made at this time of year, as the noble Baroness indicated, the fact that they happen every year at this point means that that is the cycle. It will always be the case that some government business is taken at this time of year and there is nothing particularly to be read into that. I understand what she is saying about the £240 million but it is additional money and is nowhere near all the money that is spent on adult social care. I should make the point that it is additional money and will make a difference, and of course there is always the option of moving forward on the precept with additional spending next year and the year after, which, over the two-year period, comes to some £900 million. That is a significant amount.

In relation to the school funding announcement, I hope the noble Baroness will understand that it is not something I am briefed on at the moment, but I will ensure that she gets a response to what I think was an announcement made by the Department for Education on the issue. I hope that that is appropriate.