Local Government Finance Settlement is all smoke & mirrors - Teresa Pearce

Teresa Pearce, Labour’s Shadow Secretary of State for Communities and Local Government, responding to the Local Government Finance Settlement, said:

“This Local Government Finance Settlement is all smoke and mirrors – pushing numbers around but not offering any new money. Whilst we are glad that the Government has finally acknowledged that there is a deep and spiralling crisis in social care, this settlement does not offer any solutions.

“Directing £240 million from the New Homes Bonus to fund adult social care will barely make a dent in the funding gap, which is predicted to be at least £2.6 billion by 2020. Nor does it compensate for the £4.6 billion which has already been cut from adult social care since 2010.

“The council tax precept has already proven to be an inadequate and short-term sticking plaster for a problem which needs long-term answers. This will simply not meet existing need.

“Shifting the burden on to council tax payers creates a postcode lottery in social care services. The most deprived local authorities will be unable to raise the money they need through council tax. Wealthy areas will prosper whilst poor communities will struggle.

“Winter is already here and there is not a penny more for the 1.2 million elderly people who are living without the care they need. What is clear is that the Government have no new ideas on how to fund social care, and are just passing the buck to overstretched local authorities and council tax payers.

“The Government need a long-term, sustainable and strategic vision for social care. Frail elderly people and vulnerable disabled people are suffering right now because of this government’s inaction.”