Provisional Local Government Finance Settlement

Debate between Lord Beamish and Robert Jenrick

Thursday 17th December 2020 Commons Chamber

[Robert Jenrick]

My right hon. Friend the Secretary of State for Health and Social Care will bring forward proposals in due course. We will meet our manifesto commitment to introduce the long-term reforms that this country urgently needs on social care. I think today’s settlement provides local government with the sustainable finances it needs for social care. It has been widely praised by the sector as meeting the demographic changes that my right hon. Friend mentioned. We are also ensuring that councils such as his have the funding that they need. Bromley will have a 5.5% increase in core spending power from the previous year, in which there was a 4.7% increase. That is two successive years of increases in council funding for his local authority area.

Briefly, in other news for my right hon. Friend, today we have announced funding for waking watches, partly inspired by brilliant campaigners in his constituency.

[Mr Kevan Jones (North Durham) (Lab)]

I add my thanks to council staff and councillors for their work during this last year, particularly those at Durham County Council. I particularly thank the chief executive, Terry Collins, who is retiring at the end of the year after 43 years in local government.

The Secretary of State’s announcement is mainly made up of local council tax increases in core spending. Durham County Council has 50% of its council tax properties in band A, which limits its ability to raise large amounts of council tax compared with councils in the south, which have larger numbers of higher band council tax properties. That will mean that Durham County Council has no option but to increase its council tax to the maximum. The Secretary of State and the Government talk about levelling up, but today he is clearly punishing northern council tax payers while rewarding southern council tax payers.

Local Government Finance (England)

Debate between Lord Beamish and Robert Jenrick

Monday 24th February 2020 Commons Chamber

[Robert Jenrick]

If the hon. Lady is concerned about funding for local public services, she will join me and my colleagues in supporting the best local government settlement we have seen for a decade. She says that council tax is regressive, so what happened under the last Labour Government, when council tax doubled? Under this Government council tax has fallen by 6% in real terms, while we have continued to deliver important public services.

I was determined to champion local government in September’s spending review. I want to thank those who responded so constructively to the two consultations we ran at the end of last year. We can be proud of what we have achieved, and particularly of how the settlement delivers for the most vulnerable in society. It secures £1 billion of new Government funding for social care, alongside the extra £410 million that we invested last year. That is a major new injection of funding that will help local authorities to meet the undoubted rising pressures on the care system, which we all see in our communities and in our own lives.

We will also be maintaining all funding going into the improved better care fund, at the same time as the NHS contribution to the better care fund rises by 3.4% above inflation to over £4 billion, in line with the broader NHS settlement. Alongside this, I am allowing local authorities responsible for adult social care to raise council tax by an additional 2% above the core referendum principle. That is a necessary step that is specifically targeted to meet demand and ensure that vulnerable people are supported.

[Mr Kevan Jones (North Durham) (Lab)]

Councils such as Durham County Council are being disadvantaged, because even if they increase their council tax by 2% to cover that element, it will raise far less than could be raised by some councils in the south, which have larger council tax bases. The demands on Durham County Council are far greater than those on councils in Surrey, for example, because we have fewer self-funders, so how can that be fair?

[Robert Jenrick]

I will turn now to the specifics for the right hon. Gentleman’s constituency. This settlement will see a 7.1% increase in core spending power, and the additional social care grant for next year will be £12.8 million, which is a very significant increase. For the reasons he has just set out, we decided to apply an equalisation to the social care precept, which will ensure that those areas of the country with the lowest tax base will see more funding flow to them, in a redistribution of funding from those areas elsewhere in the country that, as he rightly says, have higher tax bases. We chose to do that at £150 million, which is more than has been done in previous settlements, precisely to answer the point he makes.