Local Government and Social Care Funding

Part of the debate – in the House of Commons at 1:40 pm on 24th April 2019.

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Photo of Andrew Gwynne Andrew Gwynne Co-National Campaign Coordinator, Shadow Secretary of State for Communities and Local Government 1:40 pm, 24th April 2019

Absolutely. I will leave it to the Secretary of State to answer that, because I think that Birmingham has been dealt a bad set of cards by this Government.

It is not just Birmingham. Researchers from Cambridge University have exposed the uneven impact of the Government’s funding of local government. They have found that since 2010 changes in local authority spending power have ranged from a drop of 46% to a fall of a mere 1.6%. When we compare these reductions to the indices of deprivation, we see that more deprived areas have been forced to undergo bigger cuts in service spending, with smaller spending cuts in the least deprived areas. Nine of the 10 most deprived councils have seen cuts three times the national average.

These findings are backed by the Institute for Fiscal Studies, which also suggests that since 2016 the most well-off councils have actually seen an increase of 2.8% to their spending power, while the poorest areas have seen very little growth, despite having faced the largest pressures on their services.