Local Government Finance

Clive Betts Excerpts

Thursday 17th December 2015 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right and characteristically self-effacing. During his time as a Minister in the Department, he made an enormous contribution to reforming and driving forward decentralisation.

I can confirm that part of the point of the money we have secured for the better care fund is that local authorities and the NHS work closely together, and to recognise that our elderly people, whether they are cared for in hospital, care homes or at home, are our joint responsibility. This provides the opportunity for councils to work together in the interests of our growing elderly population.

[Mr Clive Betts (Sheffield South East) (Lab)]

To show there is some charity, at least on the Labour Benches, I welcome what the Secretary of State says about the ending of double-counting of the Better Care fund. On the four-year settlement, we may have disagreements about the details, but the principle is correct.

May I draw the attention of the Secretary of State to the 6% real cuts figure? According to the LGA, it does not take account of increasing demand from the growing number of elderly people, nor of the extra costs imposed on local government by specific central Government policies. I also draw his attention to two other things: the increase in the minimum wage will have a particular impact on the cost of social care, and the pension changes will have a cost in national insurance. Do the Government recognise them as new burdens? If they do not fund them as new burdens, does the right hon. Gentleman recognise there will be extra cuts to local government services that are not recognised in his statement?

[Greg Clark]

I am grateful to the hon. Gentleman for his comments. His Select Committee and its predecessors have long called for four-year settlements and the devolution of powers. We have made a choice, advised by local government, on a flat cash settlement over the spending review period to prioritise adult social care. That is what we have done in this settlement. As I made clear when I talked about candour at the beginning of my statement, that of course means that authorities need to continue to make savings in areas outside those for which we have provided extra funds. That is accepted and understood. We have also agreed that they should be at a lower rate than was necessary at the beginning of the previous Parliament. I think local councils will welcome that.