Local Government Funding

Steve McCabe Excerpts

Wednesday 3rd February 2016 Westminster Hall

[Liz Kendall]

The hon. Gentleman is absolutely right.

This huge problem is clearest in the hugely important area of adult social care. Already under this Government, 400,000 fewer older and disabled people are receiving publicly funded social care. That is a fall of 25% at a time when our population is ageing. More than 1 million people who struggle with the very basics of daily living—getting up, washing, dressing, feeding and going to the toilet—now get no help at all from paid carers or their families. Last year, the Care Quality Commission found that one in five nursing homes does not have enough staff on duty to deliver good quality care.

The latest survey from LaingBuisson shows that, for the first time ever, more older people’s care beds closed than opened. Five of the largest care providers predict significant provider failure over the next 12 to 24 months. I want to issue a warning that another failure of a big care home provider could be on the cards. Three of the larger home care providers have already withdrawn, or signalled their intention to withdraw, from providing publicly funded care.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

My hon. Friend is making a powerful case. Does she agree that if councils like mine in Birmingham or hers in Leicester followed the Chancellor’s advice and raised extra money through the precept for social care, they would still have the problem that the King’s Fund identified? If every council in the country did that every year for the next four years, we would still have a social care funding gap in excess of £3 billion.

[Liz Kendall]

My hon. Friend has hit the nail on the head. I will come to the social care precept. These problems will not go away. In fact, they will get far worse. Far from what the Government would like us to believe, there is a growing gap in funding for social care, which will have dire consequences for elderly and disabled people, their families and the NHS.

--- Later in debate ---

[Jack Dromey (Birmingham, Erdington) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. I pay tribute to my hon. Friend the Member for Leicester West (Liz Kendall) both for securing this debate and for her excellent contribution. Birmingham is the city of Chamberlain, the workshop of the world, the birthplace of municipal governance and municipal enterprise, and the biggest council in Europe. It is an ambitious city with immense potential, but it is also a city of high need. The constituency that I am proud to represent, Erdington, may be rich in talent but it is one of the poorest in the country.

Birmingham is suffering from the biggest cuts in local government history. Some £567 million has gone already, and £258 million will go over the next four years—£90 million will go this year. More than half of Birmingham’s spending power has gone, with serious consequences for a caring city struggling now to care. I was at the Royal Orthopaedic hospital last Friday and was told about its desperate difficulties in discharging patients into the community precisely because there are no people there to care for them.

School crossing patrols have been put at risk; home starts supporting vulnerable families, likewise. It is not just the council but our police service and our fire service that have suffered enormous cuts and been treated unfairly. A grotesque unfairness of approach has been common throughout. In relation to the police, for example, Surrey has been treated twice as favourably as the west midlands. The National Audit Office has frequently criticised the Government’s approach to the council, and the provisional settlement this year sees Birmingham’s spending going down by £100 per household, which is much more than the average—in Oxfordshire, after the intervention of the champion of Chipping Norton, the figure is but £37.

That is why all the parties have come together in our city. In the words of the Birmingham Mail, which has been championing the campaign for a fair deal, “No More #Brumcuts”. This is a well-timed debate because the local government and police settlements will be announced next week. Birmingham MPs of all political parties recently met the Secretary of State for Communities and Local Government and made the kind of case that my hon. Friend the Member for Leicester West made for a fairness of approach. We argued that we need a more sensible, longer-term approach. Of course it is about quantity, but it must also be based on need, and not pretending that the social care precept will address the problems of the mounting costs of social care. We also made the case that if fairness is acted upon now, it would see our city £85 million better off.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Does my hon. Friend agree that it would be helpful to hear today that, where councils and NHS providers are willing to propose innovative ideas to try to address some of the social care problems, the Government will put up some extra funding now to make that a possibility?

[Jack Dromey]

My hon. Friend makes a powerful point. When we met the Secretary of State for Communities and Local Government to discuss the immediate problems, we also discussed the wider and longer-term problems. My hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe), my right hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart) and the right hon. Member for Sutton Coldfield (Mr Mitchell) will be working together at the next stage on a sensible integration of health and social care, which we badly need nationwide, and particularly in our city. We want to make progress, but it will take time because we are confronted by an immense task.

There are big wider and longer-term problems, but here and now the plea from Birmingham is simply for a fair approach. If Birmingham is treated fairly, it will suffer but £5 million cuts this year, as opposed to £90 million cuts. If Birmingham is treated unfairly—I say this with all earnestness—children going to school will be put at risk, vulnerable families will be let down, and those badly in need of care, likewise. Those who wish to come out of hospital to rejoin their loved ones at home will be stuck in hospital. I therefore urge the Government to listen to the case for the fair treatment of our city.