Local Government Finance (England)

Liz McInnes Excerpts

Wednesday 10th February 2016 Commons Chamber

[Liz McInnes (Heywood and Middleton) (Lab)]

I will be very brief because I want to hear from the Minister, as we do need answers to the questions that have been asked in this extremely lively and robust debate. The House is clearly extremely split over this settlement, with discontent, concern and dissatisfaction among Labour Members that needs to be listened to. That does not need, and does not deserve, to be met with denial, derision and dismissal, as in the case of so many Conservative Members, I am afraid.

The Secretary of State says that he will conduct a needs-based formula review, and that cannot come soon enough. I welcome the comments of my hon. Friend the Member for Warrington North (Helen Jones) about the inequality created by the 2% precept, which raises money for those areas with the highest council tax base. That inequality has to be addressed. My hon. Friend the Member for Blackpool South (Mr Marsden) said that his area is suffering from 4.9% cuts as against the England average of 2.8%. Blackpool, an area of extreme deprivation, gets no transitional relief at all. He highlighted the failure of the 2% council tax precept to adequately fund adult social care—a theme that has run through the debate. The shadow Minister, my hon. Friend the Member for Croydon North (Mr Reed), pointed to the predicted council tax hike of 20% by 2020. This Government have broken their promise to the people of England to reduce council tax over the course of the Parliament.

My hon. Friend the Member for Sheffield South East (Mr Betts) welcomed the four-year settlement to enable our councils to plan. Indeed, I think all Labour Members welcome that. [Interruption.] As my hon. Friend the shadow Minister reminds me, Conservative Members actually voted against it. My hon. Friends also welcome the money for social care, but have pointed out that it does not meet the vast discrepancy in the funding that is needed to provide social care for our elderly and vulnerable, given the paltry amount that the 2% precept will raise. It is disappointing that Conservative Members do not understand the link between delayed discharges from hospitals and the inadequacy of social care. This is a huge social problem, and the Government need to face up to it. They need to come out of denial and do something about the funding of social care.

Too many of my hon. Friends spoke for me to be able to credit them all, but I want to thank my hon. Friends the Members for Denton and Reddish (Andrew Gwynne) and for Worsley and Eccles South (Barbara Keeley) for their eloquent explanations of the chronic underfunding of adult social care and the distress that it is already causing to the disabled, the elderly and the vulnerable.

I will close with the words of my hon. Friend the Member for Birmingham, Erdington (Jack Dromey), who pointed out that Birmingham gets “not one penny” in transitional funding, yet Surrey—not an area of high deprivation—gets £24 million. Areas of high need cannot be treated in this way. The Government need to recognise the consequences of their actions.