Local Government Finance Settlement Debate

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Lindsay Hoyle

Main Page: Lindsay Hoyle (Speaker - Chorley)

Local Government Finance Settlement

Lindsay Hoyle Excerpts
Thursday 15th December 2016

(7 years, 11 months ago)

Commons Chamber
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Sajid Javid Portrait Sajid Javid
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The shadow Minister claims that as a result of today’s news there is “no new money”—those were his words—for adult social care. He could not be more wrong. However, if he wants to imagine what a world would look like with no new money for adult social care, that is exactly what would have happened had the result of the last election been different. Let us just remember what the then shadow Chancellor said:

“There will be no additional funding for local government”.

He went on to say, when pushed on the point, that there will not be a penny more for local government.

The shadow Minister mentioned, and rightly so, the important role that the NHS plays in providing and helping with adult social care. Let us also remember that at the last general election the Labour party’s plans were to cut NHS spending by £5.3 billon—[Interruption.]

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. I need to hear the Secretary of State. You may disagree with him, but everyone wants to get in, and if I am going to get people in, let us hear the Secretary of State.

Sajid Javid Portrait Sajid Javid
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Thank you, Mr Deputy Speaker. If the Labour party had had its way, NHS funding would have been £1.3 billion lower this year. What difference would that have made to people, especially the most vulnerable in our society? We should be grateful that Labour is not in office.

Under this Government, the spending review allocated an additional £3.5 billion of funding for adult social care by 2020. Let me focus precisely on the shadow Minister’s claim that there is no new money, because he is absolutely wrong. There is new money, with today’s announcement of £240 million that otherwise would have gone to the new homes bonus. We have responded to what local councils and many local authority leaders have asked for and repurposed that money. There is also an additional £654 million because of the precept changes. If the shadow Minister cannot work that out, he needs to look again at his basic mathematics skills. Taken together, those numbers mean an additional £900 million over and above the spending review settlement over the next two years. That means approximately £450 million of new money each year for the next two years.

The shadow Minister also referred to council tax bills, which reminded me of what the shadow Minister for adult social care, the hon. Member for Worsley and Eccles South (Barbara Keeley), said recently:

“Asking taxpayers…to pick up the bill…is no substitute for a proper plan.”

The Opposition need to learn that there is no such thing as Government money—it is all taxpayers’ money, whether it is raised locally or nationally. I know that the Leader of the Opposition believes in a magic money tree, but I did not realise that all Opposition Members feel the same way. If we want properly funded services, including for adult social care, there needs to be a balance between those who pay for them—the taxpayers—and those who use them. That means making the right decisions to make sure that the services are properly funded and, at the same time, that tax bills do not rise more than necessary. That is why I am proud that, under this Government, even taking into account the precept changes that we have announced today, by the end of this Parliament the average council tax bill will be lower in real terms than it was in 2010.

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Sajid Javid Portrait Sajid Javid
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I hope the hon. Gentleman agrees with me and believes in the power of localism and of letting local people, through their elected representatives, make decisions for their local areas. That is the job of local government; the precept provides flexibility, and today we have provided even more, but the decisions should be made at the local level. That is important.

The hon. Gentleman will know that Cambridgeshire and Peterborough have reached a devolution deal. By May next year, they will have a directly elected mayor. As well as economic growth and more productivity, part of the deal is about seeing whether there can be better management and delivery of public services. Cambridgeshire and Peterborough are in a good position to look at how those devolution powers can be used to improve services, including adult social care.

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Last, but certainly not least, I call Huw Merriman.

Huw Merriman Portrait Huw Merriman (Bexhill and Battle) (Con)
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Thank you, Mr Deputy Speaker. I think there are about the same number of people here as there were when I first started bobbing.

Lindsay Hoyle Portrait Mr Deputy Speaker
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Order. Does the hon. Gentleman want me to take them again?

Huw Merriman Portrait Huw Merriman
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No, Sir. I was recently told that in my constituency town of Bexhill we have more over-85s than any other town in the whole of western Europe. Many of those constituents will have moved from other counties to East Sussex to downsize. As a result, council tax increases are a challenge not just for them but for those in the rest of East Sussex. May I therefore thank the Secretary of State for the extra funding for East Sussex and for listening to the concerns of East Sussex MPs? When he looks at the bold reform for social care, will he consider whether national funding for social care will help to alleviate the demographic issues I have in East Sussex?