Opposition Day debate: Local government finance
5 February 2020
Today is the second Opposition Day of this Parliament – a day where the Opposition are able to choose the subjects debated by MPs. The subjects chosen for debate are local government finance and transport.
Local Government Finance
Andrew Gwynne MP: "I fear for the future of the local government sector"
Andrew Gwynee described the state of local government finance as "desperate" due to the "10 years of cuts to our local councils and public services at a time of rising demand".
He says that the Government's funding review could make matters worse for councils.
Mr Gwynee highlighted the impact of the new "fair funding formula" on adult social care and children's services, saying that it could "tip councils over the edge" because "councils with greatest social need and the worst health inequalities have a limited tax base to make up for any financial losses".
Speaking about local government funding, the Shadow Secretary of State for Communities and Local Government said:
"It is £8 billion more needed just to stay as we are today."
"So, even if this £8 billion funding was provided, in full, by 2025, it would barely keep the sector's head above water, allowing councils to continue delivering services at current levels, with no capacity to meet the growing need for services."
Luke Hall MP: "It is absolutely true that councils face pressures on adult and children's care services"
Responding on behalf of the Government, Luke Hall, Minister for Housing, Communities and Local Government said core spending power for local government would increase from £46.2 billion to £49.1 billion in 2020/2021.
Mr Hall states that almost £6 billion has been put into dedicated funding across social care, including an extra £1 billion grant for adult and children's social care. He says that this will "help local authorities meet rising demands".
He informed the House that a new formula has been developed and simplified to assess relative needs, which helps distribute funding.
Luke Hall said:
"I think we should be clear that the sector has asked us for a simpler, up to date, evidence-based funding formula and that is what we are going to deliver"."
Image: PA Images
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