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| Local government: autumn statement fails to deliver on social care Local government: autumn statement fails to deliver on social care | |
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| Local government bodies have welcomed measures announced in the autumn statement to stimulate affordable housebuilding, devolve further powers and boost regional infrastructure – but there was disappointment over the chancellor’s failure to address the social care funding crisis. | Local government bodies have welcomed measures announced in the autumn statement to stimulate affordable housebuilding, devolve further powers and boost regional infrastructure – but there was disappointment over the chancellor’s failure to address the social care funding crisis. |
| Lord Porter, chair of the Local Government Association, said the government must take urgent action to fund social care properly, if councils are to stand any chance of protecting care services for elderly and vulnerable people. Porter said that extra council tax-raising powers would not bring in enough money to alleviate the pressure on social care and that councils will not receive most of the new funding in the Better Care Fund until the end of the decade, but services for elderly and vulnerable people are at breaking point now. | Lord Porter, chair of the Local Government Association, said the government must take urgent action to fund social care properly, if councils are to stand any chance of protecting care services for elderly and vulnerable people. Porter said that extra council tax-raising powers would not bring in enough money to alleviate the pressure on social care and that councils will not receive most of the new funding in the Better Care Fund until the end of the decade, but services for elderly and vulnerable people are at breaking point now. |
| The Association of Directors and Adult Social Services (Adass) has forecast that local councils will overspend almost £500m in adult social care as the crisis deepens. | The Association of Directors and Adult Social Services (Adass) has forecast that local councils will overspend almost £500m in adult social care as the crisis deepens. |
| The New Local Government Network welcomed the 30p increase in the living wage from £7.20 an hour to £7.50, but director Adam Lent warned that this would also push up the cost of delivering social care, putting increasing strain on local authorities that have already seen their budgets slashed. | The New Local Government Network welcomed the 30p increase in the living wage from £7.20 an hour to £7.50, but director Adam Lent warned that this would also push up the cost of delivering social care, putting increasing strain on local authorities that have already seen their budgets slashed. |
| Similar disappointment came from Jo Miller, president of the Society of Local Authority Chief Executives and Senior Managers and chief executive of Doncaster council, who said Hammond had failed to address “the elephant in the room’ – funding for the social care system. | Similar disappointment came from Jo Miller, president of the Society of Local Authority Chief Executives and Senior Managers and chief executive of Doncaster council, who said Hammond had failed to address “the elephant in the room’ – funding for the social care system. |
| Miller said professionals in both health and social care had hoped for some concessions from the chancellor in recognition of the seriousness of the situation, and some “clear measures” to tackle it. “We can only hope that, in the public spending review the chancellor announced, the government is developing a serious plan to ensure the future sustainability of our health and care systems.” | Miller said professionals in both health and social care had hoped for some concessions from the chancellor in recognition of the seriousness of the situation, and some “clear measures” to tackle it. “We can only hope that, in the public spending review the chancellor announced, the government is developing a serious plan to ensure the future sustainability of our health and care systems.” |
| Porter added that the measures announced to boost affordable housebuilding would be good news for local government, but said they must be supported by adequate infrastructure to help councils tackle some of the nation’s roads repair backlog and improve broadband. | Porter added that the measures announced to boost affordable housebuilding would be good news for local government, but said they must be supported by adequate infrastructure to help councils tackle some of the nation’s roads repair backlog and improve broadband. |
| Local enterprise partnerships | Local enterprise partnerships |
| Hammond announced that the government would be investing in local infrastructure across England, via a £1.8bn allocation from the local growth fund. The plan will see £556m allocated to Local Enterprise Partnerships in the north of England, £542m to the Midlands and east of England, and £683m to LEPs in the south-west, south-east and London. | Hammond announced that the government would be investing in local infrastructure across England, via a £1.8bn allocation from the local growth fund. The plan will see £556m allocated to Local Enterprise Partnerships in the north of England, £542m to the Midlands and east of England, and £683m to LEPs in the south-west, south-east and London. |
| The chancellor also reaffirmed existing commitments to devolve powers to Swansea, Edinburgh, North Wales and Tay Cities and also announced a new city deal for Stirling. | The chancellor also reaffirmed existing commitments to devolve powers to Swansea, Edinburgh, North Wales and Tay Cities and also announced a new city deal for Stirling. |
| In a recent interview with The Guardian, Miller said she would like what she calls “proper” devolution: real scope locally to work on developing skills and apprenticeships to support the government’s industrial strategy. Hammond announced today that London – at least – would be getting just that. Central government is devolving the capital’s adult education budget, and giving it “greater control over the delivery of employment support services for the hardest to help”, said the chancellor. | In a recent interview with The Guardian, Miller said she would like what she calls “proper” devolution: real scope locally to work on developing skills and apprenticeships to support the government’s industrial strategy. Hammond announced today that London – at least – would be getting just that. Central government is devolving the capital’s adult education budget, and giving it “greater control over the delivery of employment support services for the hardest to help”, said the chancellor. |
| The news has been welcomed by mayor of London, Sadiq Khan, who said he hopes to go further on this in the future with control of skills budgets for 16- to 18-year-olds too. | The news has been welcomed by mayor of London, Sadiq Khan, who said he hopes to go further on this in the future with control of skills budgets for 16- to 18-year-olds too. |
| Hammond also announced new borrowing powers for new mayoral combined authorities in England, and further talks with London and the West Midlands on possible devolution of further powers. | Hammond also announced new borrowing powers for new mayoral combined authorities in England, and further talks with London and the West Midlands on possible devolution of further powers. |
| WE DID IT! #Stirling has secured a #CityDeal which will be transformational for the area. Find out more at https://t.co/idgFmUTkJg pic.twitter.com/zLy8Tf6MdW | WE DID IT! #Stirling has secured a #CityDeal which will be transformational for the area. Find out more at https://t.co/idgFmUTkJg pic.twitter.com/zLy8Tf6MdW |
| Jonathan Carr-West, chief executive of the local government information unit, said there was nothing about devolution beyond the major cities in the statement, and that it was disappointing to hear the chancellor blame higher spending by local authorities as a cause of the weaker economic outlook. | Jonathan Carr-West, chief executive of the local government information unit, said there was nothing about devolution beyond the major cities in the statement, and that it was disappointing to hear the chancellor blame higher spending by local authorities as a cause of the weaker economic outlook. |
| Carr-West said his real worry was what the chancellor didn’t talk about. In addition to no mention of funding for social care, Carr-West pointed out the absence of anything about how business rate retention is going to work and how local government will be financed in the medium to long term. “This was presented as an upbeat autumn statement, but between the lines there was nothing for local government to celebrate.” | Carr-West said his real worry was what the chancellor didn’t talk about. In addition to no mention of funding for social care, Carr-West pointed out the absence of anything about how business rate retention is going to work and how local government will be financed in the medium to long term. “This was presented as an upbeat autumn statement, but between the lines there was nothing for local government to celebrate.” |
| Jonathan Owen, chief executive of National Association of Local Councils (Nalc) said devolution must not stop at Whitehall or County Hall and that the autumn statement fails to recognise the potential of local action to make a difference and contribute to the health of the democratic state as a whole. “The devolution plans announced are great but this next phase of localism is by no means localist enough, nor is it bold enough,” he said. Nalc is calling for the government’s devolution plans to include communities, neighbourhoods and local parish and town councils. “If anything, this year has taught us that some communities feel left behind by our national economy and politics. Supporting these communities can be part of the solution,” he said. | Jonathan Owen, chief executive of National Association of Local Councils (Nalc) said devolution must not stop at Whitehall or County Hall and that the autumn statement fails to recognise the potential of local action to make a difference and contribute to the health of the democratic state as a whole. “The devolution plans announced are great but this next phase of localism is by no means localist enough, nor is it bold enough,” he said. Nalc is calling for the government’s devolution plans to include communities, neighbourhoods and local parish and town councils. “If anything, this year has taught us that some communities feel left behind by our national economy and politics. Supporting these communities can be part of the solution,” he said. |
| Transport infrastructure | Transport infrastructure |
| An extra £1.1bn investment in English transport networks was announced in the autumn statement, with £220m to address traffic pinch points on strategic roads; £450m to trial digital signalling on railways; and £390m invested in low emission and autonomous vehicles. | An extra £1.1bn investment in English transport networks was announced in the autumn statement, with £220m to address traffic pinch points on strategic roads; £450m to trial digital signalling on railways; and £390m invested in low emission and autonomous vehicles. |
| The chancellor said the Department for Transport will continue to work with Transport for the North to develop detailed options for Northern Powerhouse Rail. | The chancellor said the Department for Transport will continue to work with Transport for the North to develop detailed options for Northern Powerhouse Rail. |
| Despite his enthusiasm for affordable housing plans, the mayor of London voiced his disappointment that the autumn statement did not include any measures to devolve to the capital some control over suburban rail services. | Despite his enthusiasm for affordable housing plans, the mayor of London voiced his disappointment that the autumn statement did not include any measures to devolve to the capital some control over suburban rail services. |
| Universal credit | Universal credit |
| From April the universal credit taper rate will be reduced from 65% to 63%, in effect a tax cut of £700m by 2022. Hammond described universal credit as an “important reform” to the benefits system. | From April the universal credit taper rate will be reduced from 65% to 63%, in effect a tax cut of £700m by 2022. Hammond described universal credit as an “important reform” to the benefits system. |
| Reducing Universal Credit Taper Rate from 65% to 63%. Chosen instead of restoring Work Allowances or unfreezing benefits. #autumnstatement | Reducing Universal Credit Taper Rate from 65% to 63%. Chosen instead of restoring Work Allowances or unfreezing benefits. #autumnstatement |
| The next few years will be a challenge for local councils, which face a £5.8bn funding gap by 2020, according to LGA figures, and difficult decisions about which services are scaled back or stopped. | The next few years will be a challenge for local councils, which face a £5.8bn funding gap by 2020, according to LGA figures, and difficult decisions about which services are scaled back or stopped. |
| “Even if councils stopped filling in potholes, maintaining parks and open spaces, closed all children’s centres, libraries, museums, leisure centres, turned off every street light and shut all discretionary bus routes they will not have saved enough money to plug this gap by the end of the decade,” said Porter. | “Even if councils stopped filling in potholes, maintaining parks and open spaces, closed all children’s centres, libraries, museums, leisure centres, turned off every street light and shut all discretionary bus routes they will not have saved enough money to plug this gap by the end of the decade,” said Porter. |
| The LGA has called on the chancellor to allow local government to use the extra business rates income it will keep by 2020 to plug the growing funding gap. “The ability to fix longer-term funding settlements has been important for councils and something we have long called for. Given the majority of councils have taken up the option, the government now needs to publish the local government finance settlement as soon as possible,” said Porter. “This will give councils more time to plan for the difficult funding decisions which lie ahead.” | The LGA has called on the chancellor to allow local government to use the extra business rates income it will keep by 2020 to plug the growing funding gap. “The ability to fix longer-term funding settlements has been important for councils and something we have long called for. Given the majority of councils have taken up the option, the government now needs to publish the local government finance settlement as soon as possible,” said Porter. “This will give councils more time to plan for the difficult funding decisions which lie ahead.” |
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