Helen Jones
Main Page: Helen Jones (Labour - Warrington North)Local Government Finance (England)
Helen Jones Excerpts(8 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Greg Clark
I am going to make some progress, as you have urged me to do, Madam Deputy Speaker. If I have time towards the end, I will take an intervention from the right hon. Gentleman.
The second feature of the settlement is that we have prioritised spending on adult social care—the care that we provide to our elderly and vulnerable citizens. [Interruption.] Labour Members groan and complain, but they should recognise that in response to the requests of local government, the Government have done something that the previous Government did not and established funding arrangements to ensure that we can protect our elderly and vulnerable citizens.
In September, the Association of Directors of Adult Social Services and the Local Government Association made a submission to the spending review—“Adult social care, health and wellbeing: A Shared Commitment. 2015 Spending Review Submission”—in which the two organisations jointly requested that an extra £2.9 billion be made available by 2020. With the introduction of the 2% social care precept and £1.5 billion made available to councils through an improved better care fund, up to £3.5 billion of extra funding will be available for adult social care by 2019-20.
Andrew Gwynne (Denton and Reddish) (Lab)
Will the Secretary of State give way?
Greg Clark
I will not give way.
More elderly people living in our communities is a good thing—they are our parents and grandparents, and it is an advance that they are living longer than anyone thought possible—but we need to pay for their care needs. It is no reflection on the efficiency of a council if care costs increase because the number of older people is increasing in their communities.
Greg Clark
I will not give way.
A 2% precept is the equivalent of an annual £23 increase in the average bill for a band D property. That money can be used only for social care, and council tax bills are required to be transparent about the purpose for which the money is raised.
By the end of this Parliament, local government will retain all the business rates it raises. It is a huge transformation from a world in which, just three years ago, every penny that councils collected from local businesses had to be handed over straight to the Treasury. That meant that councils were dependent on the central Government grant. At the start of the last Parliament, nearly 80% of council expenditure was in the form of a grant from central Government. By 2020, all local government spending will be raised by local government. Councils and local people will reap the benefits of reviving economic growth, just as central Government and the country will benefit from the rising prosperity that the Government’s policies are fostering. With services financed locally, councils are even more accountable to their electorates, rather than to Ministers in Whitehall. Even as a Minister in Whitehall, I say that this is how it should be.
Helen Jones
I am sorry, but the Secretary of State is being disingenuous. He knows that the whole local government finance system, set up under the previous Government’s Local Finance Act 2012, takes no account of need. His social care precept will raise the most money in areas that have the highest council tax base, not in areas where there is greatest need, which tend to have the lowest council tax base.
Greg Clark
The hon. Lady makes two interesting points. On the first point, about the formula, I agree with her. It is too long since the underlying assessment of needs was updated—it is more than 10 years—and that is why I have proposed to go back to the drawing board and look at the needs and the resources available to each county. She is quite right on that point. On the second point, of course she is right: I recognise that the effect of a 2% precept is different in different parts of the country. The better care fund has been allocated differently precisely to take account of that. I would therefore have thought she welcomed that.