Oral Answers to Questions

Rishi Sunak Excerpts

Monday 12th March 2018 Commons Chamber

[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

5. What assessment he has made of the adequacy of projected funding for adult social care until 2020.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

In addition to the spending review package, the Government provided a further £2 billion for adult social care at last year’s Budget and an additional £150 million in the most recent local government finance settlement. As a result, councils will be able to increase spending on adult social care in real terms each year until 2020.

[Tracy Brabin]

Kirklees Council spends 35% of its budget on adult social care. It has just raised its council tax by 6%, and half of that is ring-fenced to fund social care, but the council will still have to cut tens of millions in the years ahead. So, ahead of tomorrow’s spring statement, will the Minister tell us what he has done to secure more funding from the Treasury for social care to alleviate the pressure on councils such as Kirklees?

[Rishi Sunak]

In the most recent local government finance settlement, the Secretary of State listened to councils’ concerns and increased funding for adult social care by £150 million, with £26 million for Kirklees Council in particular. I recently met the Key Cities group, of which Kirklees is a member, to discuss its ideas for reforming the funding formula so as to adequately reflect the pressures faced by councils such as Kirklees.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

When the then Communities and Local Government Committee adopted the Bill introduced by my hon. Friend the Member for Harrow East (Bob Blackman) that became the Homelessness Reduction Act 2017, Ministers, to their credit, engaged really positively to make that Bill work. May I urge the Minister to be just as positive about the planned joint Committee inquiry into the funding of adult care? Indeed, Front Benchers on both sides of the House will need to engage with that process if we are to have a long-term answer.

[Rishi Sunak]

I wholeheartedly agree with my hon. Friend. As he knows, the Government are committed to publishing a Green Paper on adult social care this summer. Alongside that, there is a workstream on working-age adult social care to which I am sure that he will be keen to contribute.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

25. Increasing the social care precept will do nothing to solve the challenge that we face in social care. Is it not time that Ministers stopped passing the buck to local councils and instead worked with us to try to find a long-term solution to one of the greatest challenges that we face as a country?

[Rishi Sunak]

I agree with the hon. Lady that this is a challenge facing our country, and it is important that we get this right and put social care on a sustainable footing, not just for this year but for the years to come. That is exactly why the Government are committed to the Green Paper and to tackling this problem, and she should look forward to seeing the Green Paper’s contents this summer.

[Yvonne Fovargue (Makerfield) (Lab)]

The Minister referred to the local government finance settlement, but this year’s settlement still means a cut of £177 million for adult social care compared with last year. Given that the National Audit Office’s report states that more and more councils are only just managing to balance their books by using their reserves to cover overspends on social care services, how does the Minister suggest that councils can avoid declaring themselves effectively bankrupt, as Northamptonshire County Council did last month, as in many cases their reserves will be gone by 2020?

[Rishi Sunak]

I simply do not recognise those figures. The Government have increased funding for adult social care. Over these three years, £9.4 billion has been allocated for adult social care funding, with £150 million more at the last local government finance settlement. This Government are listening to councils and delivering extra resources to help them.

[Helen Jones (Warrington North) (Lab)]

The Local Government Finance Act 2012 divorced local government funding from any assessment of need. The Government’s insistence that the problem can be solved by councils raising precepts is simply wrong, because councils in wealthier areas, which have more properties in the higher bands, can raise more money than those with more properties in the lower bands, which usually have the greatest needs, the greatest levels of long-term disease and so on. When will the Minister understand this and actually start to allocate social services funding on the basis of need?

[Rishi Sunak]

I can reassure the hon. Lady that the allocation for social care funding does take into account the relative council tax bases of local authorities across the country. That said, I appreciate that the funding formula is out of date and in need of review, which is why we have launched a consultation on reforming it. That consultation closes today, but I would welcome her comments and input into it. We will reform the formula so that it can adequately take account of need, as she suggests.

[David Warburton (Somerton and Frome) (Con)]

6. What assessment he has made of the effect of the Help to Buy scheme and the reduction in stamp duty on first-time buyers.

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[Matt Western (Warwick and Leamington) (Lab)]

19. What assessment he has made of the effect of the local government finance settlement 2018-19 on the ability of local authorities to meet their statutory responsibilities.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

The 2018-19 settlement is the third year of a four-year deal providing funding certainty and is accepted by 97% of councils. The settlement sees a real-terms increase in resources to local government over the next two years, totalling £45.1 billion in the forthcoming financial year.

[Diana Johnson]

Hull is the third most deprived local authority in the country. Two thirds more Hull residents require social care compared with the national average. We have lost half our Government funding since 2010 and we will be getting the lowest amount per head from the social care precept of any Yorkshire and Humber council. With the Government having got it so wrong so far, will the Minister guarantee that Hull will now get a fair funding settlement?

[Rishi Sunak]

The hon. Lady makes some comments about funding for deprived areas. She will be pleased to know that funding per household in her particular area is higher than the average for unitary authorities across the country and that in general the most deprived local authorities have funding per household that is 23% higher than the most well-off. On her point, I can reassure her that we are committed to introducing a new fair funding formula and I look forward to hearing the responses from her council as we develop it.

[Matt Western]

In a letter to the Secretary of State last month, the Conservative leader of Warwickshire County Council stated that in the council’s view the current funding model for local government is unsustainable. Is she correct?

[Rishi Sunak]

I appreciate that the hon. Gentleman makes a point about the funding settlement and the formula. He will know from his membership of the Select Committee, which I have just had the pleasure to appear before, that we are looking very hard at the structure of local government financing, both increasing the amount of business rates retentions to 75% and introducing a new needs-based formula that takes into account updated needs and resources. I know his Committee will play a huge part in making sure that we get that right for Warwickshire and for the country.

[Mr Gary Streeter (South West Devon) (Con)]

Over the years, I have strongly supported the pressure we have rightly put local authorities under to improve efficiency and bear down on waste, and I am sure that elsewhere in the country there are examples of where more needs to be done. In the south-west, however, my impression is that the finances of Devon, Plymouth and many other local authorities have been cut to the bone. I think there is an opportunity for the Government to be more generous with efficient local authorities in the south-west to enable them to make sure their priorities are delivered.

[Rishi Sunak]

I pay tribute to the work of local government across the country. Local authorities have done a commendable job over the past few years of delivering high quality services in a difficult financial climate. I thank them, as I know their constituents do. On my hon. Friend’s point, I look forward to the representations from Devon and the south-west as we reform local government financing through the fair funding formula which is coming soon.

[Mr David Lammy (Tottenham) (Lab)]

24. On 4 July, the Secretary of State said to the House that he would help, with every precaution, local authorities dealing with the cladding problem across our country following the Grenfell Tower fire. Why, despite over 41 local authorities asking for that help and the Department giving £817 million back to the Treasury, has he not been able to find the money to help those poor worried people who are in those buildings as we speak?

[Rishi Sunak]

The Department is in discussions with multiple local authorities on the requirements to improve the safety of buildings. My understanding is that the Department has not said no to any local authority thus far that is seeking flexibility with those plans.

[Ruth George (High Peak) (Lab)]

My own council in Derbyshire has seen £180 million—over half of its budget—cut in the past seven years. It cannot now offer enough money for social care packages for terminally ill people to receive care in their own home. They are being forced to die in hospital away from their loved ones. What will the Minister do to make sure that councils receive the proper funding that they need to be able to free up hospital beds and support families in the most urgent need?

[Rishi Sunak]

As we have been discussing, the Government have put extra financial resources into social care. It is pleasing to see that over the past year, delayed transfers of care across England attributable to social care have fallen by 34%, showing that the resources we are putting in are making a difference on the ground.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Since 2010, Hull City Council has been forced to cut its children’s services budget by £37.2 million, which means that it has not had the money that it has needed for early intervention support for families. It is no surprise that the number of looked-after children in Hull has increased by 140—that is 140 children’s lives changed forever. Will the Minister please give authorities such as Hull City Council more money, so that they can give those families support when they need it, before they enter crisis?

[Rishi Sunak]

The hon. Lady is absolutely right to highlight the important work that prevention plays. Nobody wants to see a child in need in those circumstances, which is why this Government have committed almost £1 billion to the troubled families programme over this period in the spending review. As recent results have shown, that is reducing the number of children in need after heavy intervention from their key workers in the programme.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Last week, the respected National Audit Office published its report on the financial sustainability of local authorities. It made clear the significant challenges faced by councils and the vital services that they deliver. Can the Secretary of State prove that he is on the side of local councils and place in the House of Commons Library any submissions that he has made to the Chancellor ahead of the spring statement?

[Rishi Sunak]

I also read the National Audit Office report with interest. I was pleased to see that it made very positive comments about the Department’s work in getting to grips with the challenges across local government and making sure that the sector is properly resourced and looks forward to the reviews that are being put in place to improve funding and business rates retention.

[Clive Efford (Eltham) (Lab)]

13. What resources he is providing to local authorities to build council housing.

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[Ged Killen (Rutherglen and Hamilton West) (Lab/Co-op)]

15. What steps he is taking to support local authorities to fulfil their statutory duties in relation to children in care.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

Over the spending review period, councils will receive more than £200 billion to deliver local services. This money is largely not ring-fenced, so local authorities can prioritise where they see fit, including for their statutory duties relating to children in care.

[Ged Killen]

With the education disparity between looked-after and non-looked-after children being so wide, what more does the Minister believe local authorities can do to bridge the gap?

[Rishi Sunak]

The hon. Gentleman raises a good point about the outcomes for children in care. The Government are consulting and are shortly to introduce the care leavers covenant, which will look to support companies, charities and local government to bring care leavers into employment after they leave care, and we are strengthening corporate parenting provisions under the Children and Social Work Act 2017.

[Chris Ruane (Vale of Clwyd) (Lab)]

17. What steps his Department is taking to tackle the practice of land banking.

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[Alex Burghart (Brentwood and Ongar) (Con)]

T5. What recent assessment has the Department made of the success of the troubled families programme?

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

I know that my hon. Friend has a long history of being interested in this programme. He will be pleased to know that the evaluation reports published in December showed promising progress, particularly with regard to children in need. Further findings will be published in the annual report, and I look forward to discussing them at length with my hon. Friend then.

[Marsha De Cordova (Battersea) (Lab)]

T3. The current definition of affordable housing, introduced by the coalition Government, is set at 80% of local market rate, but when house prices are spiralling out of control, as they are in my constituency, this definition of affordable housing is a cruel joke to those on low or median income. Will the Secretary of State commit to replacing this absurd definition so that housing can be genuinely affordable to my constituents?

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[Steve Double (St Austell and Newquay) (Con)]

Councils in rural areas have received a raw deal on local government funding for many, many years, even though the cost of delivering services in rural areas is often significantly higher. Will the Minister assure me that in the local government finance review the true cost of delivering services will be considered and that rural areas get a fair deal?

[Rishi Sunak]

I know that my hon. Friend is a doughty champion of rural areas. I am delighted to tell him that his point will be exactly considered in the fair funding formula. I am sure that he will be heartened by the local government finance settlement, where we increase rural services delivery grant to its highest ever level.

[Several hon. Members rose—]