Fears 'fair funding review' will see government 'heap more misery' on the sick

Several warnings have come from St Helens Council’s leadership over the impacts of the government’s ‘fair funding review’ in the the last two years.

The review could see £320 million a year shifted out of councils in England’s most deprived areas with Tory-controlled shire councils, mainly in the south-east, gaining £300 million.

READ > St Helens council tax rise agreed 'in principle' for 2020-2021

Many constituencies that elected new Tory MPs in December would also lose out, according to the analysis, which was commissioned by the LGA.

Worryingly, the analysis says that St Helens Council could lose £3.67 million, in cash terms.

The analysis models the likely differential effect on councils’ adult social care funding allocations from 2021 using a proposed new government methodology used to direct funds to local authorities.

However, as the analysis only looks at one segment of the fair funding review, the LGA said no conclusion could or should be drawn about the potential overall impact of the review for any local authority.

The LGA said the analysis is a “high-level indication of the broad direction of travel” and not official financial planning guidance.

Despite this, the analysis has sparked further warning bells in St Helens.

Speaking at cabinet this week, Cllr Martin Bond, cabinet member for finance, said the government will “heap more misery on sick people” if the analysis turns out to be accurate.

Cllr Bond said: “Reports over the weekend by the LGA and in the media are suggesting that the government may well cut funding for adult social care when the problem is escalating.

“This authority could lose a further £3 million plus, if the reports are accurate, whilst leafy Tory voting shires stand to gain.

“It’s reported that metropolitan boroughs alone could lose up to £300 million in social care funding.

“That’s places like St Helens, Knowsley and Wigan. Real people in St Helens will suffer because of this.

“Our parents, grandparents, partners, friends and neighbours. Our children, our brothers and sisters.

“If the reports are indeed accurate, then this government will heap more misery on sick people, ironically in lots of places that voted for them for the first time ever.

“If true then it is genuinely dystopian.”

Cllr Martin Bond, St Helens Council's cabinet member for finance

If St Helens does take a hit from the fair funding review, it will be another blow for the council already struggling to meet cost and demand in adults and children’s services.

For 2019-20, the council saw £5 million slashed from its revenue support grant, a lump sum that can be used to finance revenue expenditure on any service.

This takes the overall reduction of general support grant from the government to £90 million since 2010.

Following its analysis of the fair funding review, the Conservative-controlled LGA has urged the government to publish official illustrations “as soon as possible” to enable meaningful financial planning for councils.

READ > Marie Rimmer MP calls for fresh investment after stripping Northern of franchise

The LGA also said the results of the review must be introduced alongside additional funding for local authorities.

“No outcome of the review will be sustainable if overall resources are insufficient to maintain services as councils have seen significant reductions in funding and are facing significant cost pressures in the future” an LGA spokesman said.

“The LGA is calling for no local authority to see its funding reduce as a result of the review and a transition mechanism, backed by additional funding, would help deliver this aim.”