Social Care Funding (EAC Report)

Lord Liddle Excerpts

Thursday 28th January 2021 Grand Committee

[The Deputy Chairman of Committees (Lord Faulkner of Worcester) (Lab)]

The noble Lord, Lord Liddle, is not able to take part in the debate, so I call the noble Lord, Lord Lancaster of Kimbolton.

[Lord Liddle (Lab) [V]]

I am able to take part in the debate.

[The Deputy Chairman of Committees (Lord Faulkner of Worcester) (Lab)]

We were told that you were not on the call at the beginning of the debate and did not hear it.

[Lord Liddle (Lab) [V]]

I was on the call and heard the beginning. But if that is your ruling, Chair, that is fine.

[The Deputy Chairman of Committees (Lord Faulkner of Worcester) (Lab)]

No; we do not want to deny you the opportunity. Please speak to us now, Lord Liddle.

[Lord Liddle (Lab) [V]]

I am very sorry; I was on the call and heard the excellent speech of the noble Lord, Lord Forsyth. I first pay tribute to him for his chairmanship of the committee, and his ability to produce an objective analysis and a report that commands a wide degree of consensus. I have always regarded him as one of the finest speakers in the House but he is normally making arguments I totally disagree with, so I am delighted to be able to congratulate him on this report.

Secondly, I declare my interest as a member of Cumbria County Council. That is very relevant to this debate because, frankly, we cannot go on as we are with what are, basically, patchwork solutions to the funding crisis in social care while relying on council tax supplements to fund the bulk of the patching that is necessary. We are in a terrible dilemma this year in Cumbria. Should we put up council tax by 5% in real terms during this Covid crisis, when so many workers are on low incomes and the self-employed are in great difficulty? It is very unfair. It would be unfair in any event because council tax is very inequitable in the way that its burden falls. We must find a better solution. I was pleased that when we debated this, the noble Lord, Lord Greenhalgh, said that in his view council tax needed reform. That would be a very good first step.

Thirdly, this is an area where we have to be prepared to contemplate some unconventional state intervention. I am a free market man by nature, or a social market man, but on wages, working conditions and training, we should go back to some kind of wages council cum training board which is determined with a remit to raise standards in this sector.

Finally, there is a need for some intervention to sort out the corporate structure of the sector. Far too many care home chains have been ruined by private equity and loaded up with debt. This needs sorting out without giving a present to the shareholders, so some government intervention is required. I am also in favour of a reform of inheritance tax and of the charging system so that people do not lose the whole of their wealth that they want to pass on but the burden of social care is, basically, paid by the better off through a reform of wealth taxation.