Local Government Finance

Louise Ellman Excerpts

Wednesday 22nd February 2017 Commons Chamber

[Sajid Javid]

Local government is the frontline of our democracy. Every day, England’s almost 400 districts, counties, boroughs, unitary councils and metropolitan areas provide countless services to millions of people. They clean our streets, repair our roads and care for our most vulnerable people. They maintain our infrastructure, shape our communities, put roofs over our heads and so much more. It is our job to make sure that they are adequately funded to do just that.

A provisional financial settlement was published late last year. Since then, we have received formal representations from nearly 200 organisations and individuals. I thank everyone who took part in that process. The results of the consultation are before the House today in the shape of the final settlement. It is a settlement that provides councils with the resources required to deliver world-class public services in the year ahead, while continuing to play their part in bearing down on the deficit. Nobody knows local government better than local government itself, so this settlement answers the requests made of us by representatives of every tier of local government and every political party.

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

I agree with the Secretary of State about drawing attention to the importance of local government. Will he explain why Liverpool, with its high deprivation and low tax base, has now lost more than 60% of its central Government funding?

[Sajid Javid]

The hon. Lady will know that all councils have been asked to make a contribution to deal with the large deficit that the country had in 2010. That does not mean it has not been challenging—it has been for Liverpool and other councils—but many other councils have demonstrated that there are ways to deal with that and have been able to handle the challenges well. It might reassure the hon. Lady to remind her that the Liverpool city region is part of the business rates retention pilot, which I shall address in a moment and which may help to deal with some of the challenges.

--- Later in debate ---

[Sajid Javid]

All councils that are in two-tier areas.

The second key area where we have listened and responded is funding for adult social care. That issue transcends party politics. Local government may have the statutory duty to look after our most vulnerable citizens, but we all have a moral duty to help it to do so.

The spending review put in place up to £3.5 billion of additional funding for adult social care by 2019-20, but we recognise that the coming year is the most difficult in the settlement period for many councils. There are immediate challenges in the provision of care, and they must be met now before those substantial additional resources become fully available. This settlement creates a new £240 million adult social care support grant, and it allows councils to raise the adult social care precept by up to 3% next year and the year after. Together, those measures make up almost £900 million of additional funding for adult social care available over the next two years. That means that the total dedicated funding available for adult social care over the next four-year settlement period is £7.6 billion.

[Mrs Ellman]

Does the Secretary of State recognise that although the package he has put forward is a welcome step, it will go nowhere near addressing the major crisis in social care from which the people in Liverpool are suffering?

[Sajid Javid]

I recognise that there is more to do on adult social care—especially in the area of reform, to which I shall turn in a moment.

Some local authorities will be able to raise less in precept than others. That is why we have also confirmed that the improved better care fund allocations, worth £1.5 billion by 2019-20, will take into account a council’s ability to raise funding through the precept.