Tag Archives: social_care

Learning more about the challenges social care faces

As the debate continues around our plans for a social care referendum, lots are keen to learn more about social care. Which is good news and exactly what we have been hoping for.

Scope and Age UK provide some of the best online resources, I’ve included two of their videos here, but do visit Scope’s Britain Cares and Age UK’s Campaign for Better Care to find out more.

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UPDATED 22/2/14 to add King’s Fund video.

The crisis in local government funding: Why now is the time for a referendum (Part 2)

This is the second and concluding part on why now is the time for the citizens of Brighton & Hove to be asked whether they will support a 4.75% tax increase to protect council social care services. Part One is here.

Here in Brighton & Hove we have tried to absorb as much of the budget pressures as possible through being more efficient, more flexible and by reducing our footprint – in other words fitting our staff into fewer, more sustainable and efficient offices. This has yielded significant savings, but it won’t be enough for the very significant drops in funding the government plans over the next two years. In July 2013, based on government statements, council officers made their best predictions on how our core funding will drop in the coming years. Here’s their graph:

Main BHCC grant reductions

So in the face of this we do need to find more efficient ways of working – we have no choice. But we also need to raise money. We are looking at new ways of generating income, but those will take some time to pay dividends. More immediately we could increase fees and charges, but this isn’t always desirable, could only go so far and couldn’t possibly raise enough.

So the last option we are left with is council tax. It is an option that Eric Pickles has done his best to undermine and control local decisions with gimmicks like a ‘tax freeze grant’ and by adding an ‘excessive tax threshold’ over which councils are forced to seek permission for the increase through a referendum which can only be held after tax bills have gone out.

However for all its many imperfections, those with the biggest homes do pay more council tax and the poorest do get help paying it through our discount scheme known as ‘Council Tax Reduction’.

First though we need to understand the recent history of council tax in the city. In the last year of the Conservative administration they originally proposed a -1% council tax reduction, but this was amended to a freeze. Labour had originally agreed with us to still refuse the overall budget and revisit some of the other options. Sadly in the end Labour reneged, and supported the freeze. The next year Labour passed an amendment, backed by the Tories, to our first budget reducing a 3.5% council tax rise down to a freeze. It was only the year after that Labour, at the last moment, decided to support a 1.96% council tax rise.

Even setting aside the scale of government cuts in relation to our budget, what do these successive freezes do for the council’s financial position when compared with the pressures of inflation. This graph shows the situation since Greens took administration in 2011:

Total Green Inflation + Council Tax

As you can see, in real terms one of the only sources of income the council has influence over, is hugely behind inflation. It’s so far behind that it barely scrapes the surface of growing demand and government cuts. The imposition of a freeze by Labour and Tories in 2012 alone means that we have £3.7m less in the 2014/15 budget. Indeed we have cumulatively had £8.5m less since 2012 when compared with what our 3.5% proposal would have done. This additional income would have quite probably meant that we could have kept to a 2% rise for 2014/15. Many warned that freezes back then would lead to higher tax increases later, and this is proving to be case. Smaller, regular increases as we proposed was responsible, long-term thinking. Sadly, as Eric Pickles knew, too many were unable to resist the temptations of the short-termist freeze approach.

Let’s put all this history and our 4.75% proposal into perspective. Firstly let’s look at the average inflation and tax rises during our term in office and Labour’s terms:

Average CT + Inflation Labour vs Greens

Clearly Labour’s tax rises were far above inflation, while ours have been significantly below, even if the 4.75% proposal was to be agreed. And this was during the time of plenty. So in real terms council tax bills have been declining in value under Greens.

Now let’s look at the whole picture of tax increases and inflation since the city council was formed:

By party Council Tax + Inflation graph
Click for full sized graph

It’s important to note that the first budget of each administration is actually set by the previous administration just before the elections. So the 2011/12 budget, which we had to implement, was set by Tories in February 2011 just before we became the largest party in May 2011.

Clearly no party represented on the council today was averse to tax increases at one point or another when they were in charge. That continues to be the case: Right now we see Conservative-led councils like Kent advocating 2% increases and Sussex’s Conservative Police & Crime Commissioner just approving a 3.6% increase to her precept. Labour councils are seeking tax increases too and we see Labour council leaders backing our referendum proposal including from Preston and Brent.

What would our proposal cost? Setting aside Police and Fire precepts, which we don’t control, for our 4.75% proposals the majority of households would pay an additional £4.53 or less a month. It would raise £2.75m more than in our draft budget from December 2013 when we planned for a 2% rise. The extra money raised would go exclusively to protecting Home Care, Community Care, the supported employment service ‘Able & Willing’, and third sector grants. The nature of the budget and referendum processes mean it will be cast iron that the additional money raised would have to go to those services.

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So there we have it. Our population is ageing, adding significant additional pressures on council budgets as we strive to deliver the care our most vulnerable deserve. We have an unprecedented scale of government funding cuts – which councils and political parties across the country agree is setting us up for a huge funding gap. And lastly, we have in recent years locally seen council tax fall well behind inflation meaning that it is not really contributing to relieving our intense funding pressures.

Social care is the council’s biggest area of spending, and is responsible for the most vulnerable in our society. The picture I’ve painted above shows that carrying on, even with the most clever efficiency savings we can possibly deliver, will mean a severe reduction in what care we can offer. I hope that isn’t what we want for our society. But now is the time to have the debate. The referendum process defined by government is imperfect, but it’s all we’ve got right now.

Some in the media want to skip straight to whether people will vote for or against the referendum question. That’s premature, right now we need to debate the reasoning for the referendum as I have set out here. We must discuss the principle of letting the city decide at this critical juncture for the future our public services, otherwise we risk this precious opportunity being rejected out of hand by a few councillors.

I believe it is right and just to ask the citizens of Brighton & Hove, before it is too late, “What future do you want for our elderly, disabled and vulnerable?”

Debate continues on Twitter under #bhbudget #brightondecides and #LetThePeopleDecide – join in!

The Brighton & Hove Independent are hosting a free public debate on the social care referendum on Monday 10th February at 7pm. Free tickets can be booked here.

The crisis in local government funding: Why now is the time for a referendum (Part 1)

There has been much political analysis in recent days over the ‘real’ reasons why I announced the Green administration’s plans for a social care referendum on a 4.75% council tax increase.

Opposition parties have tried to throw as much sand in the eyes of the public with a colourful array of false and misleading claims. I won’t dignify them further other than to say how unedifying it has been to see political leaders doing everything they can to avoid debating the genuine issues at hand: the huge financial pressures councils are under and the growing uncertainty over how social care can be provided into the future.

Let’s be clear, the reason I’ve proposed a referendum on a 4.75% tax rise for social care is because I think it’s the right thing to do. Let me now explain why in more detail.

In 2011 we made a commitment to publishing early drafts of council budgets to facilitate the consultation and engagement process. Every year so far the final budgets have changed for the better as a result of this process. It’s the right way to do things when we have to decide on the future of important services for our city. We did the same again this year and the feedback from the public, service users, advocacy groups and unions was clear. They were very concerned about the impact of budget cuts on the third sector and social care in particular. They’re not alone – the majority responding to the council’s budget questionnaire wanted funding to be maintained or increased for local services. Yet because of government cuts and growing demand for our services , we will have to spend £23m less for the coming 2014/15 financial year.

Why is social care under particular pressure? Well the number of people who need social care is growing. This includes those with physical and learning disabilities as well as the elderly. It’s no secret that as we are all living longer, the cost of social care is growing. Here’s a snapshot – looking at centenarians as just one of many examples – of how the ageing population is expected to grow in the coming years:

Growth of centenarians in the UK

 

Let’s bring that into the local context. Here are the ONS’ predictions for our city until 2021 along side the change in council funding from Government in a similar period:

 

Future population & council funding changes
Future population & council funding changes

 

Yes, the graph really does show over 85s increasing in number by 20%  and at the same time our government funding declining by 61%. This is why the cross-party Local Government Association has been doing increasingly detailed work on making clear the huge pressures councils face as austerity continues and pressures on services grows. This graph shows their predictions for unitary councils like Brighton & Hove:

 

LGA unitary funding forecast
LGA unitary council funding forecast

 

The gap between funding available and funding needed for existing services is incredibly stark: This is not for new or extra services – but just to keep things going. In local government circles this has been debated, with increasing angst, for some time. But it’s sadly the case that too little of this reality  has entered public debate.

Some have claimed that this is special pleading by the Greens but that’s simply not true. The Local Government Association has a cross-party consensus on the issue and their chairman, the Conservative Sir Merrick Cockell, has led the charge. Sir Merrick, also the former leader of Kensington & Chelsea Council has said:

“We are being pushed into a position where either things will fail or the system has to change … we can’t cope unless someone takes that big step … to change the way we operate … Vital services are being damaged because councils do not have a seat at the table to negotiate a fair deal for their communities.”

Similarly the Labour leader of Birmingham City Council, Sir Albert Bore has said:

“Birmingham faces a severe financial crisis. Politicians in Westminster are systematically dismantling services that maintain the very fabric of culture and community here.”

“These cuts will mean the end of local government as we know it … but that does not mean the end of local government. We now need to build the new local government that will replace it. We call on the government to make radical changes to the way local services are funded and provided.”

The Independent Mayor of Bristol, George Ferguson, has said:

“…every city in the UK is facing a massive budget challenge… It will not be without pain… No number of negative headlines will change the fundamentals: we [the city council] must balance our books…”

The Conservative leader of Devon County Council has said to local government ministers:

“The impact of [the] spending review has not been accurately portrayed… We cannot make these extra savings without reducing substantially the services we offer to the people of Devon.”

And the Labour Mayor of Liverpool Joe Anderson has said:

“I believe community cohesion is being seriously threatened by the lack of funding to our city and others. I believe that the so-called ‘summer-of-discontent’ will happen again if we do not address this issue.”

So the problems of funding cuts are real, are being expressed loudly by all parties and are already hurting local services across the land.

In part two I will look in more detail at the particular situation we find ourselves in Brighton & Hove and why I believe our proposal is the right way to proceed. UPDATE: Part two has now been published.

Meanwhile debate continues on Twitter under #bhbudget #brightondecides and #LetThePeopleDecide plus comment pieces have been published by Local Government Chronicle editor Emma Maier, The Guardian’s Simon Jenkins and others as well as lots of excellent blog posts.

Why we want to let the people decide on social care referendum

A version of this article was first published in the Brighton & Hove Independent.

Readers will know that public services have for the last few years seen significant government cuts. Here in Brighton & Hove we have so far been successful in protecting essential services by saving tens of millions of pounds through genuine efficiencies. But darker storm clouds are on the horizon.

Councils are facing what many are calling ‘a cliff edge’ in funding, and as a result huge chunks of services could disappear. Simply put, we can no longer absorb all of the government’s cuts whilst also meeting the increasing demand for our services from a growing yet ageing population.

Nationally councils have seen a 38% reduction in funding compared to Government only 8% trimming of Whitehall departments. And sadly, per head of population, Brighton & Hove has been one of the worst hit councils in the country.

We want to offer you, the residents of our city, a choice: accept the full weight of austerity cuts imposed on Brighton & Hove by Eric Pickles or else cast a vote for a fairer and more compassionate society. Let the coalition cuts take their toll, or agree to pay a little bit extra each month to fund care for older and disabled people in our community and protect funding for the city’s charities.

The increase in council tax we’re asking of residents will not only save services this year, but will improve their security for years to come. If agreed, the money will specifically go towards supporting home care, residential community care, day services, support for those with learning disabilities looking for work – as well as protecting grants to the city’s third sector.

The elderly have worked hard all their lives and deserve our continued support in their old age. And the city’s charities, social enterprises and not-for-profit organisations also provide essential services across all our city’s communities. We know that investment in our third sector benefits the city and residents many times over. Without additional funding, the Coalition’s cuts will seriously impact upon some of the most vulnerable people in our city.

We think it’s right that we trust the residents of Brighton and Hove to decide what they want from local services – particularly given the financial situation is so different to that when they voted in 2011. So we want to hold a citywide referendum in May 2014 on whether we should raise council tax by 4.75% for the coming financial year.

We ask the people of the city to vote in favour; to reject austerity in Brighton and Hove and help us to preserve a more compassionate society, one which cares for older and disabled people, supports social enterprises and protects the not-for-profit sector that is so vital to so many in our community.

The full announcement of the referendum can be viewed here.