Council Tax

Debate between Baroness Taylor of Stevenage and Lord Clarke of Nottingham

Tuesday 19th November 2024 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, the noble Baroness makes a good point. We have all seen the crisis in social care caused by the previous failure to face up to the issues that were confronting that sector, and we heard earlier from my noble friend Lady Merron about some of the steps that have been taken to address it. This year, the Government are providing at least £600 million of new grant funding for social care as part of the broader estimated real-terms uplift to core local government spending power of around 3.2%. We are committed to reforming adult social care and improving the quality of care for people in need, and that is why we have invested an additional £86 million next year for the disabled facilities grant, to enable people to stay well, safe and independent at home for longer. In October, we introduced legislation to bring in the fair pay agreement to ensure that those vital care workers, who we know so many of our vulnerable residents rely on, are recognised and rewarded for the important work that they do.

[Lord Clarke of Nottingham (Con)]

My Lords, the most obvious problem with the council tax system in this country is that it is based on a hopelessly out-of-date valuation which no Government have dared to address in recent years. It produces great anomalies in the council tax levied in different parts of the country. As this new Government have a big parliamentary majority and this is the early stages of the Parliament, will they not have the courage to address this obvious anomaly, so that at least the basis for council tax can be fairer in future years and we can begin to establish a system of revaluing, from time to time, to keep it a defensible system?

[Baroness Taylor of Stevenage (Lab)]

As a former Chancellor, the noble Lord will have detailed knowledge of this, and I am sure he made similar representations to his own Government. We all know that problems are caused by outdated valuations and the regressive nature of council tax. However, widescale reform of the council tax system at this stage would be time consuming and complex. We would still have winners and losers whichever way we did it. Instead, this Government are committed to fairer funding. We will start it in this year’s funding settlement, with a further review in the 2025 spending review.