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Use Tax Powers To Fund Social Care

Tuesday, January 26, 2016

GMB Call On 152 English Councils To Use New Powers On Council Tax To Raise Additional £1,804m Per Year By 2019/20 To Fund Social Care

Councils are allocated extra funds from the Better Care Fund so new money could total £3,304m for councils in England by 2019/20 which must be spent on social care says GMB.

GMB, the union for care home staff, is calling on all 152 councils in England responsible for social care to use to the full their new powers to raise an additional £1,804m per annum on the council tax by 2019/20 to have for residential care. In addition to this an extra £1.5bn will be made available through the Better Care Fund for social care by 2019/20.

In the Spending Review authorities with social care responsibilities were given the flexibility to raise council tax in their area by up to 2% above the referendum threshold for each year between 2016-17 and 2019-20, to fund adult social care services. In addition the Government announced £1,500 million additional funding for local authorities to spend on adult social care by 2019-20, to be included in an improved Better Care Fund. See notes to editors for details of both announcements.

The aggregated totals for all councils in each region in England are set out in the table below. The table includes details of how the £1,500m additional Better Care Funds for the region is allocated to councils by region and the final column sets out the total new money for councils by region by 2019/20. The figures for all 152 councils in England are set out as a pdf at the foot of this release on GMB website www.gmb.org.uk . Also set out there as pdfs are the regional press releases on this issue.

Using the 2% powers each year Kent County Council can raise an additional £51.1m per annum by 2019/20, Essex can raise an additional £50.7 m per year, Birmingham can raise an additional £24.6m per year and Lancashire can raise an additional £35.9m per year by 2019/20.

For Kent there is an additional £33.7m from the Better Care Fund giving a total of £84.8m new money for social care for 2019/20. For Essex there is an additional £30.7m from the Better Care Fund giving a total of £81.4m new money for social care for 2019/20. For Birmingham there is an additional £52.4m from the Better Care Fund giving a total of £77m new money for social care for 2019/20. For Lancashire there is an additional £40m from the Better Care Fund giving a total of £75.9m new money for social care for 2019/20. The top 20 councils by possible new money is set out in notes to editors 4 below.

 

 

Potential additional Council Tax revenue

from Adult Social Care

flexibility (£ millions)

Proposed Improved Better

Care Fund (£ millions)

Total (£ millions)

 

 

2019-20

2019-20

 

 

 

 

 

 

 

England

1,804.0

1,500.0

3,304.0

 

 

 

 

 

 

London

264.7

247.4

512.1

 

North West

224.1

266.7

490.8

 

South East

337.9

125.2

463.1

 

West Midlands

173.3

195.0

368.2

 

Yorkshire and The Humber

162.2

173.8

335.9

 

East of England

211.1

124.0

335.1

 

South West

202.9

129.8

332.7

 

East Midlands

143.1

132.8

276.0

 

North East

84.6

105.4

190.0

 

 

 

 

 

Justin Bowden, GMB National Officer for social care, said, "GMB is calling on all councils in England responsible for social care to use to the full their new powers to raise an additional £1,804m per annum on the council tax by 2019/20 to raise desperately needed funds for residential care.

GMB has published this list of how much cash councils can raise to ensure that they immediately start to raise every pound they can under these new powers.  GMB is also spelling out how much each council has been allocated from the Better Care Fund total of £1,500m by 2019/20.

If social care is going to be adequately funded in future, then increasing the tax base is an inevitable and important step along that road.

Allowing local authorities to raise council tax by 2% each year is only the start. This is because there are massive disparities in how much extra cash for care different councils will be able to generate. Some councils will be able to pay fair fees to providers, whilst others won't come close to bridging the funding gap. Where there is a funding shortfall the government must step and fill it.

We expect councils to spend every penny of this possible new money of £3,304m for England on providing the care that our elderly and vulnerable deserve.”

End

Contact: Justin Bowden 07710 631 351 or GMB Press Office: 07921 289880 or 07974 251823 or 020 7391 6755/56.

Notes to editors

1 Autumn Statement 2015 speech:

Mr Speaker, the health service cannot function effectively without good social care.

The truth we need to confront is this: many local authorities are not going to be able to meet growing social care needs unless they have new sources of funding.

That, in the end, comes from the taxpayer.

So in future those local authorities who are responsible for social care will be able to levy a new social care precept of up to 2% on council tax.

The money raised will have to be spent exclusively on adult social care – and if all authorities make full use of it, it will bring almost £2 billion more into the care system.

It’s part of the major reform we’re undertaking to integrate health and social care by the end of this decade.

To help achieve that I am today increasing the Better Care Fund to support that integration, with local authorities able to access an extra £1.5bn by 2019-20.

The steps taken in this Spending Review mean that by the end of the Parliament, social care spending will have risen in real terms.

Mr Speaker, a civilised and prosperous society like ours should support its most vulnerable and elderly citizens.

2 Spending Review and Autumn Statement document 2015

The Spending Review creates a social care precept to give local authorities who are responsible for social care the ability to raise new funding to spend exclusively on adult social care. The precept will work by giving local authorities the flexibility to raise council tax in their area by up to 2% above the existing threshold. If all local authorities use this to its maximum effect it could help raise nearly £2 billion a year by 2019-20. From 2017 the Spending Review makes available social care funds for local government, rising to £1.5 billion by 2019-20, to be included in an improved Better Care Fund.

The Spending Review and Autumn Statement announces a number of measures to help local authorities, with responsibility for adult social care, meet the needs of their population: • these authorities will be given an additional 2% flexibility on their current council tax referendum threshold to be used entirely for adult social care. If fully used it could raise nearly £2 billion a year by 2019-20 – enough to support more than 50,000 older people in care homes or almost 200,000 in their own homes.92 Including this precept, by 2019-20, the average Band D council tax bill in England will still be lower in real terms than it was in 2010-11, unless higher increases win the explicit support of local people in referenda

3 Written question asked by Steve Reed, Member of Parliament for Croydon North on 15 December 2015:

To ask the Secretary of State for Communities and Local Government, what estimate he has made of (a) the level of funding required to cover local authority spending on social care in the period to 2020 and (b) how much the proposed two per cent increase in council tax intended for the social care levy will have raised in funding by 2020 if every authority implements that proposal to the full.

Answered 5 January 2016 by Marcus Jones, Member of Parliament for Nuneaton

Ahead of the Spending Review, the Local Government Association estimated the gap in adult social care funding to be £2.9 billion - arising from a growing elderly population and introduction of the National Living Wage.

At Spending Review the Government outlined a package of support worth up to £3.5 billion to ensure councils are able to support some of their older and most vulnerable residents. That included giving authorities with social care responsibilities the flexibility to raise council tax in their area by up to 2% above the referendum threshold for each year between 2016-17 and 2019-20, to fund adult social care services. It is also providing £1500 million additional funding for local authorities to spend on adult social care by 2019-20, to be included in an improved Better Care Fund. Taken together, these measures provide significant resources to address the demographic pressures facing the social care system.

In terms of what the social care flexibility could raise, I refer the hon. Member to information accompanying the provisional local government finance settlement 2016-17, which my rt. hon. Friend the Secretary of State for Communities and Local Government (Greg Clark), announced to the House on 17 December 2015, Official Report, Column 1722. This can be found at:

https://www.gov.uk/government/publications/council-tax-in-2016-to-2017  and

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/486708/Core_spending_power_supporting_information.xlsx

4 Top 20 councils ranked by possible new money.

 

 

Potential additional Council Tax

revenue from Adult Social Care

flexibility (£ millions)

Proposed Improved Better Care

Fund (£ millions)

Total (£ millions)

 

 

2019-20

2019-20

 

 

 

 

 

 

 

England

1,804.0

1,500.0

3,304.0

 

 

 

 

 

 

 

 

 

 

rank

 

 

 

 

1

Kent

51.1

33.7

84.8

2

Essex

50.7

30.7

81.4

3

Birmingham

24.6

52.4

77.0

4

Lancashire

35.9

40.0

75.9

5

Hampshire

46.5

18.9

65.4

6

Norfolk

29.1

28.4

57.5

7

Hertfordshire

44.0

12.9

56.9

8

Surrey

53.5

1.5

55.0

9

Derbyshire

23.9

25.9

49.9

10

Devon

29.5

19.7

49.2

11

Staffordshire

25.5

23.2

48.7

12

Nottinghamshire

27.0

21.5

48.5

13

Lincolnshire

21.2

25.1

46.3

14

Leeds

22.8

22.7

45.5

15

West Sussex

33.4

12.1

45.4

16

Suffolk

24.6

20.3

44.9

17

Liverpool

12.8

27.8

40.6

18

Durham

15.7

23.1

38.8

19

Cornwall

21.5

16.9

38.4

20

Northamptonshire

23.0

14.4

37.4

 

 

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Additional Resources

GMB Call On 14 West Midlands Councils To Use New Powers On Council Tax To Raise Additional £173m Per Year By 2019/20 To Fund Social Care

download pdf219Kb (pdf) - 26 January 2016

Councils are allocated extra funds from the Better Care Fund so new money could total £368.2m for councils in the region by 2019/20 which must be spent on social care says GMB

GMB Call On 9 East Midlands Councils To Use New Powers On Council Tax To Raise Additional £143.1m Per Year By 2019/20 To Fund Social Care

download pdf216Kb (pdf) - 26 January 2016

Councils are allocated extra funds from the Better Care Fund so new money could total £276m for councils in the region by 2019/20 which must be spent on social care says GMB

GMB CALL ON 16 SOUTH WEST COUNCILS TO USE NEW POWERS ON COUNCIL TAX TO RAISE ADDITIONAL £202.9M PER YEAR BY 2019/20 TO FUND SOCIAL CARE

download pdf220Kb (pdf) - 26 January 2016

Councils are allocated extra funds from the Better Care Fund so new money could total £332.72m for councils in the region by 2019/20 which must be spent on social care says GMB

GMB CALL ON 11 EAST OF ENGLAND COUNCILS TO USE NEW POWERS ON COUNCIL TAX TO RAISE ADDITIONAL £211.1M PER YEAR BY 2019/20 TO FUND SOCIAL CARE

download pdf141Kb (pdf) - 27 January 2016

Councils are allocated extra funds from the Better Care Fund so new money could total £335.1m for councils in the region by 2019/20 which must be spent on social care says GMB

GMB call on 23 councils in North West to use new powers to raise additional £224.1m per year by 2019/20 to fund social care

download pdf146Kb (pdf) - 27 January 2016

Councils are allocated extra funds from the Better Care Fund so new money could total £490.8m for councils in the region by 2019/20 which must be spent on social care says GMB

GMB call in 15 councils in Yorkshire and the Humber use new powers to raise additional £161.2m from council tax to fund social care

download pdf174Kb (pdf) - 27 January 2016

Councils are allocated extra funds from the Better Care Fund so new money could total £335.9m for councils in the region by 2019/20 which must be spent on social care says GMB

GMB CALL ON 12 NORTH EAST COUNCILS TO USE NEW POWERS ON COUNCIL TAX TO RAISE ADDITIONAL £84.6M PER YEAR BY 2019/20 TO FUND SOCIAL CARE

download pdf139Kb (pdf) - 27 January 2016

Councils are allocated extra funds from the Better Care Fund so new money could total £190m for councils in the region by 2019/20 which must be spent on social care says GMB

GMB CALL ON 19 SOUTH EAST COUNCILS TO USE NEW POWERS ON COUNCIL TAX TO RAISE ADDITIONAL £337.9M PER YEAR BY 2019/20 TO FUND SOCIAL CARE

download pdf174Kb (pdf) - 27 January 2016

Councils are allocated extra funds from the Better Care Fund so new money could total £463.1m for councils in the region by 2019/20 which must be spent on social care says GMB

GMB CALL ON 33 LONDON COUNCILS TO USE NEW POWERS ON COUNCIL TAX TO RAISE ADDITIONAL £264.7M PER YEAR BY 2019/20 TO FUND SOCIAL CARE

download pdf151Kb (pdf) - 27 January 2016

Councils are allocated extra funds from the Better Care Fund so new money could total £512.2m for councils in the capital by 2019/20 which must be spent on social care says GMB