Council Tax: Social Care Precept

Lord Beecham Excerpts

Wednesday 20th April 2016 Lords Chamber

[Viscount Younger of Leckie]

My Lords, the Government recognise that the local government settlement is challenging. Consistent with our approach to give local authorities more control over their own destiny, we are giving important new flexibilities which reflect concerns that councils have shared with us. We recognise that some councils with a low council tax base in the poorer communities will not benefit as much. That is why the better care fund, which the noble Baroness has mentioned, on top of the adult social care precept, will provide £1.5 billion by 2020. With this, importantly, average spending power per dwelling for the 10% most deprived authorities is around 23% higher than in the least deprived authorities.

[Lord Beecham (Lab)]

My Lords, I declare my local government interests. In Newcastle, which is suffering a cumulative loss from government cuts and cost pressures, not least in relation to social care amounting to £332 million, a 2% social care precept will raise £1.7 million. The welcome increase in the national minimum wage, which is not of course the same as the national living wage, will cost £4.5 million a year, such that over the next three years there will be a shortfall of £9.5 million. Given that the 2% increase benefits councils in better-off areas, with more people in the higher tax bands and less need for supporting social care, when will the Government recognise that it is necessary to ensure that the funding of social care ought to reflect both need and the relative yield of local taxation?

[Viscount Younger of Leckie]

My Lords, I have already addressed the important question of proportionality, which the noble Baroness raised. The Government have put in place a total package of £3.5 billion which will be available by 2019-20. That package is greater than the local authority associations’ £2.9 billion estimate, set out in their spending review submission.