Local Government and Social Care Funding

Toby Perkins Excerpts

Wednesday 24th April 2019 Commons Chamber

[Toby Perkins (Chesterfield) (Lab)]

Let me make a point that neatly sums up what my hon. Friend is talking about. In Chesterfield, we have had a reduction of 43.2%. I took the time to look at the reduction in the Minister’s constituency and it is only 12%. That is not a difference of just a couple of per cent. It is three and a half times more in my constituency.

[Andrew Gwynne]

As my hon. Friend will hear as I develop my argument, that is not just a one-off. It is happening across England and it is unfair. The Tories do not get that blatant unfairness, because they have not seen the same levels of cuts in many of their areas that we have seen, yet the impact that has had on the communities we represent cannot be expressed loudly enough.

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[James Brokenshire]

I am working closely with the Secretary of State for Education as we look towards the next spending review. I will come on to the support that is being provided for adults’ and children’s social care, as well as how we are investing further on a number of other fronts. Therefore, we have recognised and reflected on a number of the pressures that we have seen. Clearly, in the further review of relative needs and resources, and as we look towards the next spending review, I will look at the data and the evidence very closely and carefully.

[Toby Perkins]

Will the Secretary of State give way?

[James Brokenshire]

I will give way one last time and then I will make some progress.

[Toby Perkins]

I am grateful. One thing that has been missing from the debate so far in terms of social care is that the vast majority of domestic visits are carried out by employees of private sector companies, as opposed to employees of local authorities, because most of these services have been outsourced. Huge numbers of those companies are going bust. It surely shows the Secretary of State that the system is unsustainable when 100 care homes have gone bust in the last couple of years.

[James Brokenshire]

The Minister for Care, who is sitting on the Bench next to me, says that the number of providers is going up. I can assure the hon. Gentleman about the steps that we are taking in conjunction with the Department of Health and Social Care; the assurances; the quality work that colleagues across Government support and strengthen; and the arrangements that we put in place to step in when there are failures in the market and a failure of supply in relation to a particular provider. When we look at a number of these examples, we can see the work that has gone in to make sure that they are dealt with effectively.

It is about the quality of service. When we look at the broader issues of social care, which many Members across the House have rightly touched on, the focus is on the delivery of care and the delivery of outcomes. Simply spending money is not the answer in terms of delivering the high-quality care and the outcomes that some of the most vulnerable in our society need.

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[James Brokenshire]

The hon. Lady must equally reflect on the fact that the Labour Opposition voted against a real-terms increase in the core spending available to local authorities this year. That included the additional funding for health and for adult and children’s social care. We recognised the pressures and made the right judgments in respect of the pressures that councils explained to us. The Opposition may wax lyrical about funding pressures, but their own councils are not even helping themselves.

The Opposition have some front to claim to be the champions of local government and localism. I took the time to read the shadow Secretary of State’s recent speech to Labour’s local government conference this year, and it contained some big and bold claims. It is just a shame that they were not backed up by reality. He said that Labour was the party of devolution. I must congratulate him on his selective memory. If I remember correctly, it was his party that, after 13 years, left the UK one of the most centralised countries in Europe. It took the Conservatives in government to roll back the era of centrally imposed targets and the tick-box culture imposed by the Labour party, and it is this Government who have put the public finances back on track and cleared up the mess we inherited from Labour.

[Toby Perkins]

I am sure the Secretary of State would not want people watching this debate to be misled by what he has just said about police funding. He knows as well as all of us that the reason Labour voted against the spending plans for the police was that we were proposing far greater spending on the police. That is why Labour Members voted against what we saw as his derisory offer to our desperately under-resourced police services.

[James Brokenshire]

We have given significant investment to the police. Indeed, the Chancellor has made further commitments on some of the most acute pressures that we know are being experienced. I was actually talking about the local government settlement, rather than the police settlement, which was dealt with separately. However, we made a commitment to providing additional resources, and we are backing the police to deal with the issues of crime.

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[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

I wish to focus my contribution on the impact of local government cuts on tackling youth violence. We know that early intervention and prevention is key as is a public health approach, and I will come back to those points later on in my contribution.

[Toby Perkins]

On a point of order, Madam Deputy Speaker. I apologise for interrupting my hon. Friend, but I note that there is not a single Member of Parliament on the Government Benches. I just wondered whether the fire alarm had gone off and none of us on the Labour Benches had heard it.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I thank the hon. Gentleman for his point of order. Of course he knows that the occupation of the Benches is not a matter for the Chair. [Interruption.] Indeed, the hon. Member for Henley (John Howell), who is temporarily not in his place, is making it clear that he is in the Chamber. So, too, is the Minister, the Whip, the hon. Member for Dumfries and Galloway (Mr Jack), and the Financial Secretary to the Treasury. None the less, I take the hon. Gentleman’s point. I say to him and to the Chamber that I have been a little more lenient than normal this afternoon about people—on both sides of the Chamber—coming in and out of the Chamber and being absent for rather longer than I would normally find acceptable. This is a particularly busy week. There are many delegated legislation Committees and Select Committees sitting because the House did not sit on Easter Monday, so I have been a little more lenient than normal. That is one reason why there are fewer people in the Chamber than there might otherwise have been, but no one would like to give the impression to anybody watching that this has been anything other than a well-attended debate, with people making serious speeches. Every single speech that I have heard has been made by Members of this place who take their duties in their constituencies very seriously.

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[Norman Lamb (North Norfolk) (LD)]

I will address most of my remarks to the issue of social care and the challenge we face, but first I want to highlight a real concern that other hon. Members have also expressed. The funding constraints on local government have had a very big impact on preventive services that are designed to stop extra costs being incurred at a later stage through a failure of the system.

I will give one or two examples. The Select Committee on Science and Technology recently conducted an inquiry into the impact of adversity in childhood, looking in particular at trauma, abuse or neglect in early years. We know that if we intervene early and follow the evidence of what is effective in stopping trauma becoming entrenched, we can not only transform lives but save a fortune further down the track.

The hon. Member for Sleaford and North Hykeham (Dr Johnson) said something about the Conservative party being the custodians of careful finance, but we are seeing significant reductions in investment in preventive services, which end up costing the state a fortune further down the line. Too often, children who experience trauma, abuse or neglect in early years and who do not get the support they need end up being excluded from school, and the track through to the criminal justice system is all too real. Educational attainment is, therefore, often lower than it should be, and worklessness often follows. The disinvestment over the past few years in those preventive early years services, supporting parents and so on, has been a very stupid thing to do, because it will cost the state far more in years to come.

When the Chancellor launched the Budget a few weeks ago, it was encouraging to hear him say that he was willing to invest in early intervention where there was evidence of its effectiveness. Well, there is evidence of its effectiveness, so the Chancellor needs to make that investment.

[Toby Perkins]

I have huge respect for the right hon. Gentleman’s knowledge in this area, but he is talking about overall local government spending cuts and he was, of course, a part of the first five years of this Government. The greatest austerity and local government cuts were made under a Liberal Democrat and Tory coalition, so does he regret his part in the huge cuts made to local government between 2010 and 2015?

[Norman Lamb]

If we are honest, every Government have some responsibility. The reductions started before 2010. I absolutely accept—[Interruption.] Let me address this point; I am trying to be straight with the hon. Gentleman. I think mistakes were made by the coalition Government in terms of the hit local government took during that period. The contrast between the support for the NHS by increasing investment in real terms and the cut to social care does not make sense, but that is what happened. I recognise that. It was above my pay grade, but I do not think it was the right decision to make. I hope that that is of some help to the hon. Gentleman.

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[Toby Perkins (Chesterfield) (Lab)]

It is a great pleasure to follow the right hon. Member for North Norfolk (Norman Lamb), who, as we all know, has great knowledge in this area. I am pleased he acknowledged in response to my intervention that the Government the Liberal Democrats were part of got the balance wrong in local government funding. I am very conscious of that fact, having spent a lot of time talking about local government elections in the last week or so back in Chesterfield, where it is hard to find a Liberal Democrat who will own up to the Government their party was a part of. They seem to have disowned their record entirely.

My hon. Friend the Member for Sheffield South East (Mr Betts) made the point that in this time of austerity the worst hit area of government has been local government. It has been utter cowardice for the Government to say, “There are going to be huge cuts, but we’re not going to decide where they’ll fall, because we’re going to pass on that decision to local authority leaders. It will be for them to decide whether to shut a library, close a park or stop investing in roads. We’re going to outsource the pain”. I think of the many people who first became councillors after the 2015 elections, or even the 2013 elections. They were so excited to be councillors, but at their very first council meeting they were faced with the decision of what to shut. That has been the reality for many local authorities.

It is absolutely right that the motion tabled by my hon. Friends should focus on that unfairness. I have referred previously to the fact that Chesterfield has had a 43.2% cut, whereas the Secretary of State’s local authority has had a cut of just 12%. The right hon. Member for Ludlow (Mr Dunne) spoke up for that, saying the problem with the Labour Government was that they sent all the money to the poor areas. I am proud that a Labour Government made those decisions and recognised the role that local authorities can play in supporting the most deprived in our society.

As I said, I have been in Chesterfield talking about the local elections. I am proud of the record of the local authority in Chesterfield. It has recognised that in a time of austerity and unfair cuts from central Government it has had to make innovative choices to enable us to provide better services that cost less. It invested in a new leisure centre and found that the amount by which it had to subsidise it fell from £1.5 million—the figure in every year under the Liberal Democrats—to only £300,000 a year, as more people were using it because it had better facilities. Similarly, the council invested in our cultural facilities, meaning the theatre and concert venue saw a 60% reduction in the amount by which it had to be subsidised, since it was getting more punters through the door because it had better facilities.

We have fewer empty shop units than most other local authority areas of a similar sort. The council has done very innovative things, such as bringing a big wheel into the centre of Chesterfield, which massively increased the number of people visiting the town centre, and it has an innovative record on tackling homelessness. There was an excellent remembrance display to commemorate the 100th anniversary of the 1914-18 conflict, featuring poppy cascades not just from the town hall but from a variety of retail units. The council has recognised that it is sometimes necessary for local authorities to invest in order to save money and to be innovative if people are to be proud of them, but at the same time it has managed to maintain the lowest level of council tax in Derbyshire.

We know that Labour councils cost you less. The average cost per household in Labour council areas is £351 less than the average in Tory areas. The authorities that have been most likely to go bust are Tory authorities in, for instance, Northamptonshire and Surrey. Not only does Labour run its councils better than the Tories, but its councils cost less and innovate more. I am very proud of the record that I will be going out to defend.

I want to say something about social care, because I know a great deal about it. I spent a very tough year of my career as care manager of a private provider of domiciliary care for Sheffield City Council. One aspect of social care that is missing from the whole debate is the fact that it is set up as an industry rather than a service. The vast majority of domestic care providers are private sector businesses, and the vast majority of care homes are run by the private sector. The No. 1 priority of the private sector is to make a profit, and we should not be surprised that if we involve private sector companies in care homes, they will try to make a profit out of them. That, ultimately, is what companies exist for.

Councils often involve the private sector because they are trying to save money, and they recognise that the terms and conditions on which local authority staff will work will be more generous than those in the private sector. That is one of the knock-on consequences of the overall spending pressure on councils. The relationship between councils and their providers is very important. Far too often, councils outsource responsibility for these services, signing up to contracts that anyone who studies them must know are unsustainable. They must have some responsibility for the decisions that they make.

As one who has worked with carers, I take my hat off to those who work in the care industry. I know that they are among the most dedicated and professional of people, often working in incredibly difficult circumstances for an absolute pittance. I know that whether they wear a uniform with a local authority badge on it or work for a private company, they have a real commitment to the people for whom they provide care. However, we are seeing an industry in crisis. More than 100 care homes have gone bust in the last two years or so, and dozens of domestic care providers are going bust as well. In 2018 Allied Healthcare, the company for which I used to work, was days away from bankruptcy. Every time a care home goes bust, the onus falls on the local authority again.

The Government need to understand that given the scale of cuts that we have seen over the last nine years, with a single year’s uplift and the ring-fencing of the small amount of £2.5 billion—it is not actually a small amount, but it is inadequate in comparison with the cuts of previous years—they cannot, as the Minister did earlier, wash their hands of the fact that the industry is in crisis and businesses are going bust. That means 15-minute appointments. It means dementia patients seeing a different carer every day, although consistency of care is so important. It means a decline in the service that they receive. It means families seeing that their relatives are deeply troubled by the inconsistency of the services that they are receiving. It means local authorities saying that they will not pay for travelling time, and that responsibility falling back on to the companies.

The courts have recently decided that those who provide sleepovers should be paid the national minimum wage. Many care companies did not previously pay it. I support that decision, but the corollary must be the Government’s recognition that while local authorities were previously tendering on the basis that those who slept on the job could be paid on a different basis, it has now been retrospectively decided that authorities must pay private providers. Money must now come from central Government to fund that, because businesses will continue to go bust and the services on which people rely will continue to be diminished.

All the cuts to care have consequences. When care services are not available, people turn up in A&E. Some 20% of the people in A&E should be in a hospital bed but cannot get admitted. At the same time, 20% of hospital beds are filled by people who cannot get out because there is no care package waiting for them. My hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) spoke about the impact of cuts to children’s social care falling on children with special needs and on schools. Things like the failure to diagnose autism have a knock-on impact right across the school and other areas. All these services are connected; we cannot look at social care and local government finances in isolation.

I met the managing director of One to One, a company in my constituency that provides excellent care services to many local authorities, who told me about the knock-on consequences and the impact that local authority funding cuts are having on its ability to get paid. The company is often owed tens of thousands of pounds by local authorities that are struggling to manage their administration.

The industry is in crisis and local government is in crisis. The Government have two choices: they either step up to the mark and convince us that they are serious about the social care funding crisis, or they continue in the way they are going, in which case everyone will realise that this is something that lands at their door.