Budget Resolutions Debate

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Department: HM Treasury
Tuesday 12th March 2024

(1 month, 2 weeks ago)

Commons Chamber
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Kate Hollern Portrait Kate Hollern (Blackburn) (Lab)
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I want to focus on investment, or the lack of it, in public services. Good delivery of public services depends in large part on the state of local government. The sector faces a £1.6 billion funding gap in 2024-25 and services are crumbling, yet there was no mention of specific council measures in the Budget. Given the state of local services up and down the country, I was disappointed that the Government did not announce any plans to adequately fund the services that people rely on every day. Councils continue to transform services, but given that the core spending power for 2024-25 has been cut by 23.3% in real terms since 2010, it is unsustainable to expect them to keep doing more for less in the face of unprecedented costs and demand pressures.

It is also unsustainable to put further pressure on local council tax payers, who are again being asked to pay more for less, with money being taken out of their pockets. This year saw the sixth one-year settlement in a row for councils. Keeping councils on that financial drip-feed led to the steady weakening of local services.

Social care is suffering significantly, as services experience an unprecedented increase in demand and costs. Three of the most impacted areas for rising costs are children’s social care, where budget pressures are up by 13.6% in the last year; home to school transport for children with special educational needs and disabilities, where budget requirements are up by 23.3% in 2023-24; and adult social care, where increased demand means that budgetary spend is up by £2.5 billion, or 12.8%, in 2023-24.

If such services cannot be delivered effectively locally, pressure inevitably falls on the NHS. I recently met the East Lancashire Hospitals NHS Trust to discuss the most prescient issues after being contacted by constituents who had waited for hours on trolleys and in rooms without receiving attention. In recent months, the trust has experienced an increase in people regularly attending hospital. Worryingly, demand has exceeded capacity, resulting in patients facing exceptionally long waits and a suboptimal experience.

We had a great headline when the East Lancashire Hospital NHS Trust secured capital funding for an additional 27-bed ward at Royal Blackburn Hospital this year, but £3.9 million of revenue is required to enable it to be staffed, and there is no indication as to where that money—or, indeed, the staff—is coming from. It is yet another Tory headline when our services are actually crumbling.

Last Wednesday represented a vital opportunity for the Government to take action and put palliative and end of life care on a more sustainable footing and ensure that everyone affected by terminal illness receives the best possible care and support. As our population ages, too many people are dying in pain, in poverty and alone, and 84% of Marie Curie’s caring services staff have cared for patients who are struggling with the cost of living. We need a sustainable and long-term funding solution for palliative and end of life care. This is a core component of our health and care system that is so often neglected.

I would like to take this opportunity to pay tribute to the brilliant East Lancashire Hospice in my constituency, which continues to provide exceptional care through these very difficult times. However, many people are not so lucky. Shamefully, one in four do not get the end of life care and support that they desperately need—150,000 people every year. Last year, the Government released £1.5 billion in additional funding to integrated care boards to account for inflationary pressures. Once again, that made a great headline, but there was nothing for the hospice. East Lancashire Hospice received an uplift of 0%, which equates to 10% in cuts. Once again, this has proven to be another empty headline devoid of any substance.

As we all know, the long-term financial sustainability of the NHS is dependent upon investment in wider public services, which heavily influence the determinants of an individual’s health. Investment is essential in public services that shape health outcomes from birth, such as education, transport and housing. Those services are crying out for investment, but the Government have turned a blind eye.

The Government have shown clearly and starkly where their priorities lie. This Budget confirms that the Tories have failed public services after 14 years of economic failure. The Budget prioritised short-term election promises over the future of local government, the NHS and our public services. We were promised a Budget for long-term growth, but what we actually received is a Budget that reflects long-term decline under this Conservative Government.