Agenda item

Motion Submitted by the Labour Group - Council Core Spending Power Increase and Reliance on Council Tax Increases

 

This Council notes that:

 

i.    On 25 November 2020, the government set out the outcome of the 2020 Spending Review, suggesting that core spending power for councils in England would increase from £49.0 billion to £51.2 billion in 2021/22, an estimated 4.5% cash-terms increase and a rise in real terms.

 

ii.    The Ministry of Housing, Communities and Local Government’s provisional local government finance settlement 2021/22 supplies the detail behind the increase and conducted a 4 week consultation between 17 December 2020 and 16 January 2021.

 

iii.   The data behind the provisional settlement shows that, when the government suggested in the 2020 Spending Review an estimated 4.5% cash-terms increase for councils in England, they are in fact assuming that councils in England will increase council tax by 1.99% and the adult social care precept by 3% to raise £1.92 billion from council tax payers in England in 2021/22.

 

iv.   Consequently within the Ministry of Housing, Communities and Local Government’s core spending calculations for councils in England, the government contribution element constitutes only 13% of the overall increase of £2.2 billion - so, of the stated overall increase of 4.5%, only 0.6% (£292.7 million) amounts to a financial contribution from government.

 

v.   The government’s 2020 Spending Review and the Ministry of Housing, Communities and Local Government’s provisional local government finance settlement 2021/22 set against a backdrop of 10 years of austerity and local government cuts, which has seen Trafford Council face huge budget cuts as a result of unfunded pressures and the phasing out of the revenue support grant.

 

This Council recognises that:

 

i.    The underlying assumptions within consecutive government Spending Reviews and the Ministry of Housing, Communities and Local Government’s core spending power calculations for councils in England has been to force councils in England to increase council tax and precepts and passport the costs of any increases onto local council tax payers.

 

ii.    The government has failed numerous times over a number of years to hit its own deadlines to publish details of care system reforms for adults with disabilities and the elderly, which has resulted in the government introducingthe Adult Social Care (ASC) precept in 2016/17, with no national funding solution still on thehorizon.

 

iii.   The fair funding review for local government has also been delayed for a second year, with the Ministry of Housing, Communities and Local Government confirming in April 2020 that the implementation of the review will not go ahead in 2021/22 to allow councils to focus on meeting the immediate public health challenge posed by the pandemic.

 

Therefore, this Council calls on the Conservative Government to:

 

i.    Urgently increase the overall funding provided by the government to all councils in England from the government’s £292.7 million in the core spending power calculations to at least the £1.92 billion that would allow councils in England to mitigate the impact(s) on local council tax payers.

 

ii.    Urgently resolve the adult social care funding crisis and bring forward proposals to mitigate the impact(s) on local council tax payers.

 

iii.   Make progress with the fair funding review, ensuring that differentials with regards to poverty and inequality and council tax payer’s ability to pay are effectively factored into any future methodology for determining central government grant.

Minutes:

It was moved and seconded that:

 

This Council notes that:

 

i.     On 25 November 2020, the government set out the outcome of the 2020 Spending Review, suggesting that core spending power for councils in England would increase from £49.0 billion to £51.2 billion in 2021/22, an estimated 4.5% cash-terms increase and a rise in real terms.

 

ii.    The Ministry of Housing, Communities and Local Government’s provisional local government finance settlement 2021/22 supplies the detail behind the increase and conducted a 4 week consultation between 17 December 2020 and 16 January 2021.

 

iii.    The data behind the provisional settlement shows that, when the government suggested in the 2020 Spending Review an estimated 4.5% cash-terms increase for councils in England, they are in fact assuming that councils in England will increase council tax by 1.99% and the adult social care precept by 3% to raise £1.92 billion from council tax payers in England in 2021/22.

 

iv.   Consequently within the Ministry of Housing, Communities and Local Government’s core spending calculations for councils in England, the government contribution element constitutes only 13% of the overall increase of £2.2 billion - so, of the stated overall increase of 4.5%, only 0.6% (£292.7 million) amounts to a financial contribution from government.

 

v.    The government’s 2020 Spending Review and the Ministry of Housing, Communities and Local Government’s provisional local government finance settlement 2021/22 set against a backdrop of 10 years of austerity and local government cuts, which has seen Trafford Council face huge budget cuts as a result of unfunded pressures and the phasing out of the revenue support grant.

 

This Council recognises that:

 

i.     The underlying assumptions within consecutive government Spending Reviews and the Ministry of Housing, Communities and Local Government’s core spending power calculations for councils in England has been to force councils in England to increase council tax and precepts and passport the costs of any increases onto local council tax payers.

 

ii.    The government has failed numerous times over a number of years to hit its own deadlines to publish details of care system reforms for adults with disabilities and the elderly, which has resulted in the government introducingthe Adult Social Care (ASC) precept in 2016/17, with no national funding solution still on thehorizon.

 

iii.    The fair funding review for local government has also been delayed for a second year, with the Ministry of Housing, Communities and Local Government confirming in April 2020 that the implementation of the review will not go ahead in 2021/22 to allow councils to focus on meeting the immediate public health challenge posed by the pandemic.

 

Therefore, this Council calls on the Conservative Government to:

 

i.     Urgently increase the overall funding provided by the government to all councils in England from the government’s £292.7 million in the core spending power calculations to at least the £1.92 billion that would allow councils in England to mitigate the impact(s) on local council tax payers.

 

ii.    Urgently resolve the adult social care funding crisis and bring forward proposals to mitigate the impact(s) on local council tax payers.

 

iii.    Make progress with the fair funding review, ensuring that differentials with regards to poverty and inequality and council tax payer’s ability to pay are effectively factored into any future methodology for determining central government grant.

 

Following a debate on the matter, the Motion was put to the vote and declared carried.

 

RESOLVED: That this Council notes that:

 

i.     On 25 November 2020, the government set out the outcome of the 2020 Spending Review, suggesting that core spending power for councils in England would increase from £49.0 billion to £51.2 billion in 2021/22, an estimated 4.5% cash-terms increase and a rise in real terms.

 

ii.    The Ministry of Housing, Communities and Local Government’s provisional local government finance settlement 2021/22 supplies the detail behind the increase and conducted a 4 week consultation between 17 December 2020 and 16 January 2021.

 

iii.    The data behind the provisional settlement shows that, when the government suggested in the 2020 Spending Review an estimated 4.5% cash-terms increase for councils in England, they are in fact assuming that councils in England will increase council tax by 1.99% and the adult social care precept by 3% to raise £1.92 billion from council tax payers in England in 2021/22.

 

iv.   Consequently within the Ministry of Housing, Communities and Local Government’s core spending calculations for councils in England, the government contribution element constitutes only 13% of the overall increase of £2.2 billion - so, of the stated overall increase of 4.5%, only 0.6% (£292.7 million) amounts to a financial contribution from government.

 

v.    The government’s 2020 Spending Review and the Ministry of Housing, Communities and Local Government’s provisional local government finance settlement 2021/22 set against a backdrop of 10 years of austerity and local government cuts, which has seen Trafford Council face huge budget cuts as a result of unfunded pressures and the phasing out of the revenue support grant.

 

This Council recognises that:

 

i.     The underlying assumptions within consecutive government Spending Reviews and the Ministry of Housing, Communities and Local Government’s core spending power calculations for councils in England has been to force councils in England to increase council tax and precepts and passport the costs of any increases onto local council tax payers.

 

ii.    The government has failed numerous times over a number of years to hit its own deadlines to publish details of care system reforms for adults with disabilities and the elderly, which has resulted in the government introducingthe Adult Social Care (ASC) precept in 2016/17, with no national funding solution still on thehorizon.

 

iii.    The fair funding review for local government has also been delayed for a second year, with the Ministry of Housing, Communities and Local Government confirming in April 2020 that the implementation of the review will not go ahead in 2021/22 to allow councils to focus on meeting the immediate public health challenge posed by the pandemic.

 

Therefore, this Council calls on the Conservative Government to:

 

i.     Urgently increase the overall funding provided by the government to all councils in England from the government’s £292.7 million in the core spending power calculations to at least the £1.92 billion that would allow councils in England to mitigate the impact(s) on local council tax payers.

 

ii.    Urgently resolve the adult social care funding crisis and bring forward proposals to mitigate the impact(s) on local council tax payers.

 

iii.    Make progress with the fair funding review, ensuring that differentials with regards to poverty and inequality and council tax payer’s ability to pay are effectively factored into any future methodology for determining central government grant.