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| John McDonnell says emergency funds could solve social care crisis | |
| (35 minutes later) | |
| John McDonnell is demanding that Philip Hammond finds more than £1bn from within the government’s emergency budget plan to rescue Britain’s ailing social care system. | |
| The shadow chancellor says the money could come from the “fiscal headroom” left by the chancellor in the autumn budget. The money has been put aside in case of a financial emergency caused by Brexit, reports have claimed. | The shadow chancellor says the money could come from the “fiscal headroom” left by the chancellor in the autumn budget. The money has been put aside in case of a financial emergency caused by Brexit, reports have claimed. |
| The demands are meant to increase pressure on Theresa May’s government to step in with emergency funding to protect elderly and vulnerable people. | The demands are meant to increase pressure on Theresa May’s government to step in with emergency funding to protect elderly and vulnerable people. |
| In a letter sent to Hammond on Sunday, seen by the Guardian, the shadow chancellor wrote: “Independent estimates by health care charities put the minimum cost of resolving the immediate crisis over this year at £1.9bn. The funding announced by your government covers only a quarter of this. | In a letter sent to Hammond on Sunday, seen by the Guardian, the shadow chancellor wrote: “Independent estimates by health care charities put the minimum cost of resolving the immediate crisis over this year at £1.9bn. The funding announced by your government covers only a quarter of this. |
| “As you are aware, the necessary funding could be provided to social care and you would remain well inside your own target for deficit reduction, set at 2% of GDP in 2020-21. | “As you are aware, the necessary funding could be provided to social care and you would remain well inside your own target for deficit reduction, set at 2% of GDP in 2020-21. |
| “With political will, the crisis can be resolved.” | “With political will, the crisis can be resolved.” |
| On Thursday, the government announced that council tax would be allowed to rise faster than expected – by about £46 a year for an average home – to bail out struggling social care services for the elderly and vulnerable in England. | On Thursday, the government announced that council tax would be allowed to rise faster than expected – by about £46 a year for an average home – to bail out struggling social care services for the elderly and vulnerable in England. |
| It follows concerns that residential care homes are closing at an unprecedented rate, while hospitals are logjammed with elderly patients with nowhere to go. | It follows concerns that residential care homes are closing at an unprecedented rate, while hospitals are logjammed with elderly patients with nowhere to go. |
| Local authority cuts have left more than a million people in need of assistance in their homes, charities have claimed. | Local authority cuts have left more than a million people in need of assistance in their homes, charities have claimed. |
| May’s government has been accused of failing to respond adequately to a growing crisis in the sector, which has suffered huge cuts at a time of rising demand. | May’s government has been accused of failing to respond adequately to a growing crisis in the sector, which has suffered huge cuts at a time of rising demand. |
| According to the shadow chancellor’s officials, the new fiscal deficit outlined by the chancellor in the autumn statement gives more “fiscal headroom” to raise spending in case of a downturn. | According to the shadow chancellor’s officials, the new fiscal deficit outlined by the chancellor in the autumn statement gives more “fiscal headroom” to raise spending in case of a downturn. |
| The Office for Budget Responsibility (OBR) estimates this fiscal rule gives the government scope for nearly 2.5% of GDP, or £56 billion, more structural borrowing in 2020-2021. Sources close to McDonnell said it leaves scope for borrowing of 1.2% of GDP, or around £26bn. | The Office for Budget Responsibility (OBR) estimates this fiscal rule gives the government scope for nearly 2.5% of GDP, or £56 billion, more structural borrowing in 2020-2021. Sources close to McDonnell said it leaves scope for borrowing of 1.2% of GDP, or around £26bn. |
| It has been reported that this “fiscal headroom” had been left by Hammond in case the negative impact of Brexit was worse than OBR estimates. | It has been reported that this “fiscal headroom” had been left by Hammond in case the negative impact of Brexit was worse than OBR estimates. |
| McDonnell’s letter follows a request from Jeremy Corbyn on Saturday for urgent cross-party talks on how the government might avert the deepening crisis in social care this Christmas. | McDonnell’s letter follows a request from Jeremy Corbyn on Saturday for urgent cross-party talks on how the government might avert the deepening crisis in social care this Christmas. |
| A government spokesperson said: “On Thursday, the government announced almost £900m of additional funding over the next two years to tackle these growing pressures. | A government spokesperson said: “On Thursday, the government announced almost £900m of additional funding over the next two years to tackle these growing pressures. |
| “However we know that money alone is not the solution. There is a diversity of provision across councils, with many already providing high-quality social care services within existing budgets.” | “However we know that money alone is not the solution. There is a diversity of provision across councils, with many already providing high-quality social care services within existing budgets.” |