Local Government Finance Settlement Debate

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Local Government Finance Settlement

Steve Reed Excerpts
Thursday 15th December 2016

(7 years, 4 months ago)

Commons Chamber
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Sajid Javid Portrait Sajid Javid
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My hon. Friend makes an important point. I agree with him on the importance of the new homes bonus. As the name suggests, it is a bonus and not something that councils should rely on for day-to-day spending. That is why we do not include it in our core spending power calculations. Nevertheless, it is important, not least to meet the added pressures brought by the homes. He also talked about ensuring that the incentives are working properly, including in Devon, and I am happy to discuss that with him further.

Steve Reed Portrait Mr Steve Reed (Croydon North) (Lab)
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Does the Secretary of State recognise that additional precept in an area with a low council tax base raises drastically less than in more prosperous areas? The better care fund goes nowhere near plugging that gap. The Secretary of State is therefore denying tens of thousands of older people the home care and social care services that they desperately need.

Sajid Javid Portrait Sajid Javid
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I am afraid that I have to disagree with the hon. Gentleman. The better care fund goes a long way to plugging the gap. Let me remind him of the overall numbers: the spending review set out £3.5 billion of new spending by 2020, £2 billion of which would come from precepts, and £1.5 billion a year from the better care fund. It was designed precisely to plug the gap. I hope the hon. Gentleman recognises that, in today’s announcement, not all the money is through precepts. One of the reasons for the £240 million fund that is allocated on needs is to acknowledge that gap.