Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 12
12
Acknowledged
Paragraph: 63
Given the Government’s investment in the fair cost of care, and our calls for further...
Recommendation
Given the Government’s investment in the fair cost of care, and our calls for further funding and for care providers to be compensated for their employer National Insurance Contributions of the Health and Social Care Levy, it is all the more important that the additional funding reaches the frontline. However limited tax avoidance and financial transparency in certain parts of the market are, they must be tackled. The Government should bring forward proposals for both improving the financial transparency of providers and giving consumers transparency in respect of what the price for their care covers.
Government Response Summary
The government acknowledges the desire for clarity on distribution reform but states that they will not be proceeding with the Review of Relative Needs and Resources or Business Rates Reset during this Spending Review, focusing instead on stability and clarity.
Paragraph Reference:
63
Government Response
Acknowledged
HM Government
Acknowledged
Local authorities’ differing abilities to generate income from Council Tax is taken into account in the Local Government Finance Settlement (LGFS). We have also equalised against the ASC Precept since its introduction, to level the playing field between local authorities who can raise different amounts from the precept. We understand the desire for clarity on distribution reform. We confirmed through the 2023–24 LGFS that we will not be proceeding with the Review of Relative Needs and Resources or Business Rates Reset during this Spending Review, and instead have focused on offering stability and clarity, as many in the sector have asked for, following the unprecedented broader challenges since 2020. The Government remains committed to improving the Local Government Finance landscape in the next Parliament. Conclusion 18 – new burdens assessment Conclusion 18 - The Department for Health and Social Care is drip-feeding numerous policy changes in adult social care, many of which are welcome, but many of which will have a significant impact on local authorities in terms of their spending and capacity. These include the cap and new means test, commencing Section 18(3) of the Care Act 2014 in respect of residential care, the fair cost of care, reforms in the People at the Heart of Care White Paper around housing, data, and assurance, and reforms in the Joining up Care for People, Places and Populations White Paper around health and care integration. We understand that local authorities are working closely with central government on these reforms. But we are concerned that the Government does not have a handle on what the total impact on local authorities will be.