Oral Answers to Questions

Baroness Keeley Excerpts

Monday 21st November 2022 Commons Chamber

[Lee Rowley]

I am grateful to the hon. Gentleman, who brings a huge amount of experience from his Select Committee perspective, but the combination of what the Government have offered, which is a substantial increase in funds from the financial year 2023-24, plus a recognition that local councils can make decisions about their council tax bases, plus the usual efficiency savings that every large organisation should be making—[Interruption.] The Labour party seems to have a problem with local councils being as effective and efficient as they can, but I know most councils will respond to that challenge as they see fit.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

The Local Government Association has said that,

“Council Tax has never been the solution to meeting the long-term pressures facing services, particularly high-demand services like adult social care, child protection and homelessness prevention. It also raises different amounts of money in different parts of the country unrelated to need”.

Salford is the 18th most deprived local authority in the country. Increasing council tax and the levy by 5% is the equivalent of 1.8% of spending on public services there, whereas in Surrey an increase of 5% is equivalent to 3.1% of that spending. How will Salford pay for the high-demand services it needs when raising council tax seems to be the Government’s favoured solution to local government funding needs?

[Lee Rowley]

One of the services the hon. Lady highlights as being under pressure is adult social care. As the Member for Sheffield South East (Mr Betts) indicated, there is additional money going into adult social care—[Interruption.] The hon. Lady shakes her head, but it is absolutely the case that there is additional money going in. While acknowledging and understanding the principle and the underlying point that she is making, I struggle with the concept that local tax bases are not important within this discussion. They obviously are and they obviously should make a contribution. It is about trying to find a balance, and part of that balance is providing a lot of additional funds for next year, as we have done through last Thursday’s announcements.