Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 17
17
Acknowledged
Paragraph: 76
The geographical inequity of relying on council tax to provide the majority of funding for...
Recommendation
The geographical inequity of relying on council tax to provide the majority of funding for adult social care is compounded by an out-of-date adult social care relative needs formula. The Government must update the adult social care relative needs formula by the next financial year. This should be implemented alongside the Fair Funding Review and council tax equalisation. Geographical fairness should also be taken into account in future allocations of Health and Social Care Levy funding.
Government response summary AI-generated
The government states that they remain committed to providing care and support in a person’s own home, but have taken the difficult decision to not progress with the £300 million investment in housing, announced in the white paper, in order to prioritize spending on the reforms we believe are most needed.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
76
Government Response
Acknowledged
HM Government · verbatim extract
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.
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