Of course, the effect of the general election is that the hon. Gentleman’s party is responsible for delivering on public policy. We will work with his party to ensure that we do solve the social care crisis,
because if we do not solve the social care crisis, local government suffers but, more importantly, those people who rely on social care—whether it is children or adults—suffer. It is incumbent on this House to come forward in this Parliament with solutions that we can all support.
In response to the funding crisis that is growing in several town halls across the country, the Secretary of State announced a finance settlement before Christmas that, sadly, barely keeps the wolves from the door. Of course, any extra resource for local government is welcome, and I welcome the fact that we have additional resource going in this year compared with previous years, but even the chair of the Local Government Association resources board called it the “least worst” settlement of the past decade— hardly a ringing endorsement. According to research from the House of Commons Library, while in 2018-19 there was an 8.1% cut in local authority funding, this year’s settlement represents a fall of 0.2%. In real terms, the settlement represents a cut in funding while demand for local services continues to grow. These figures are only possible if local authorities increase council tax by the maximum level possible, meaning eye-watering, inflation-busting tax increases for ordinary households. That is unfair on those areas, often with the greatest need, that are unable to raise sufficient sums from council tax increases. It is also economically incoherent, because the fact is that many areas will never be able to raise the money that they need through council tax alone.
On top of this, we have the Government’s fair funding review. I fear that, unless the Government change tack, this risks causing further problems for many of those councils that are already struggling. I urge the new Members on the Government Benches to pay real attention to what the Government are proposing in their fair funding review, because their constituents will be forced to bear the cost of some of these changes, particularly in urban areas where the changes will impact the most.
Funding for social care for older people is due to drop in London, the west midlands, the north-east and the north-west at a time when demand for these services is rising. We on the Labour Benches will be urging the Government to change direction. Local government is the beating heart of our communities. We will work closely with the Government where we support their measures, but we will watch very carefully as the Government’s plans become clearer. I give the Secretary of State my word: we will support positive changes that can generate cross-party consensus, because local government and the communities we represent need that approach, but we will also robustly scrutinise and challenge the Government on finance, on regional disparities, on inequalities, on financial fairness and on need, because our communities expect nothing less.
6.43 pm