Local Government Finance (England)

Lyn Brown Excerpts

Monday 24th February 2020 Commons Chamber

[Robert Jenrick]

I am absolutely delighted to agree with my hon. Friend. Serving on a parish council is an important role in local democracy. I give my praise, along with hers, to all those who serve on parish councils—including in my own constituency, where a number of communities were flooded very seriously over the past week—for the work that they have done to support their local communities as they begin to recover from the very serious floods.

It is because those individuals and the communities they represent matter to this country that today we are backing them with the best local government funding settlement for a decade. The settlement delivers a 4.4% real-terms increase in spending power for councils—£2.9 billion extra. It has been widely welcomed by the sector. It injects significant new resources into adult and children’s social care. It places councils on a stronger financial footing from which to build. It achieves all of that while protecting people from excessive council tax rises—the kind of regressive tax increases that we saw hurting working people year after year under the last Labour Government, during whose time in office council tax doubled.

[Ms Lyn Brown (West Ham) (Lab)]

I am staggered, to be honest, because I think that council tax is a regressive tax. Each adult in Newham has lost 50% of the grant that was given by the Government, in an area where more than 50% of our children live in poverty, in order to give to the Tory shires. Does the Secretary of State honestly think that is a fair settlement?

[Robert Jenrick]

If the hon. Lady is concerned about funding for local public services, she will join me and my colleagues in supporting the best local government settlement we have seen for a decade. She says that council tax is regressive, so what happened under the last Labour Government, when council tax doubled? Under this Government council tax has fallen by 6% in real terms, while we have continued to deliver important public services.

I was determined to champion local government in September’s spending review. I want to thank those who responded so constructively to the two consultations we ran at the end of last year. We can be proud of what we have achieved, and particularly of how the settlement delivers for the most vulnerable in society. It secures £1 billion of new Government funding for social care, alongside the extra £410 million that we invested last year. That is a major new injection of funding that will help local authorities to meet the undoubted rising pressures on the care system, which we all see in our communities and in our own lives.

We will also be maintaining all funding going into the improved better care fund, at the same time as the NHS contribution to the better care fund rises by 3.4% above inflation to over £4 billion, in line with the broader NHS settlement. Alongside this, I am allowing local authorities responsible for adult social care to raise council tax by an additional 2% above the core referendum principle. That is a necessary step that is specifically targeted to meet demand and ensure that vulnerable people are supported.