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Chancellor Passes Buck On Care Funding

Wednesday, November 25, 2015

GMB Accuse Chancellor Of Passing The Buck On Care Sector Facing A Funding Crisis

Mr Osborne has not faced the fact that the Government itself has the responsibility to fund the care of the elderly and other vulnerable adults says GMB.

GMB, the union for care workers, responded to the announcement by the Chancellor of Exchequer that local authorities with responsibility for social care to be allowed to levy a new precept of up to 2% on council tax bringing almost £2 billion more into the care system. See notes to editors for main points in the Comprehensive Spending Review – from Press Association dated 25th November.

Paul Kenny, GMB General Secretary, said “George Osborne’s numbers only add up provided the growth forecasts from the Office for Budget Responsibility for GDP growth of 2.4% in 2015, then 2.4% in 2016, 2.5% in 2017, 2.4% in 2018 and 2.3% in 2019 and 2020 actually happen. This is far from certain.

The Government has missed an opportunity to expand the tax base of the economy to pay for the public services and benefits valued by the public. The cuts will hurt the vulnerable.

On the care sector George Osborne is passing the buck.

Everybody knows that the adult care sector is facing a huge funding crisis. Mr Osborne has passed the buck to the whim of local authorities rather than face up the fact that the Government itself has the responsibility to fund the care of the elderly and other vulnerable adults.”


Contact: Rehana Azam, GMB National Officer on 07841 181656 or Justin Bowden on 07710 631351 or GMB press office 07974 251 823 or 07921 289880.

Notes to editors

Main points in the Comprehensive Spending Review – from Press Association dated 25th November.

The Chancellor of the Exchequer, George Osborne, rose to give his Spending Review and Autumn Statement to the House of Commons at 12.33pm.

Mr Osborne said the Spending Review was designed to make Britain "the most prosperous and secure of all the major nations of the world”.

Four-year public spending plans are forecast to deliver a surplus as well as falling debt in every year that follows, said the Chancellor.

Welfare savings totalling £12 billion will be "delivered in full... in a way that helps families".

Since 2010, no economy in the G7 has grown faster than Britain, said the Chancellor.

Office for Budget Responsibility forecasts GDP of 2.4% in 2015, then 2.4% in 2016, 2.5% in 2017, 2.4% in 2018 and 2.3% in 2019 and 2020.

OBR forecasts that the economy grows "robustly every year", living standards rise every year and more than one million extra jobs will be created over five years, says the Chancellor.

OBR has certified that the Government's economic plan delivers on the commitment to reach surplus by 2019/20 and reduce debt to GDP ratio every year of this Parliament.

Debt forecast to be 82.5% of national income this year - down from 83.6% at time of July Budget.

Debt to fall to 81.7% next year, then 79.9% in 2017/18, 77.3% in 2018/19, 74.3% in 2019/20 and 71.3% in 2020/21.

Combined effects of better tax receipts and lower debt interest means a £27 billion improvement in public finances compared to July Budget.

The Government will borrow £8 billion less than forecast and spend £12 billion more on capital investments.

Tax credit taper rate and thresholds to remain unchanged, with a disregard of £2,500, avoiding changes all together.

Minimum income floor for Universal Credit to rise in line with the National Living Wage.

The Government will breach its welfare cap in the first years of this Parliament, but meet it in the later part.

Housing benefit for new social tenants to be capped at same level as private sector and housing benefit and pension credit payments to be stopped for people who leave the country for more than one month.

Deficit to be 3.9% of national income this year, then 2.5% in 2016/17 and 1.2% and 0.2% in subsequent years, before moving to surplus of 0.5% in 2019/20 and 0.6% the following year.

Borrowing forecast for this year cut from £74.1 billion to £73.5 billion, falling to £49.9 billion, £24.8 billion and £4.6 billion in subsequent years, reaching a surplus of £10.1 billion in 2019/20 and £14.7 billion in 2020/21.

HM Revenue and Customs to make savings 18% in its own budget and invest an extra £800 million in the fight against tax evasion.

Every individual and small business to have their own digital tax account by the end of the decade.

Cabinet Office budget cut by 26%, Treasury budget by 24% and the cost of all Whitehall administration cut by £1.9 billion.

State spending to hit 36.5% in five years - down from 45% in 2010.

Public spending of £756 billion this year, then £773 billion, £787 billion, £801 billion in subsequent years, reaching £821 billion in 2019/20 and £857 billion 2020/21.

Day to day spending of Government departments to fall by an average of 0.78% a year in real terms, compared to 2% over the last five years.

NHS to deliver £22 billion efficiency savings in England and Department of Health to cut 25% from its Whitehall budget.

Abolition of cap on student nurse numbers, to create up to 10,000 new training places.

Commitment to £10 billion real terms increase in the health service budget delivered in full, with the first £6 billion delivered up front next year. NHS budget to rise from £101 billion today to £120 billion by 2020/21.

NHS funding to deliver £5 billion for health research, 800,000 more elective hospital admissions, 5 million more out patient appointments, 2 million more diagnostic tests, new hospitals in Cambridge, Sandwell and Brighton, and cancer testing within four weeks.

Additional £600 million for mental health.

Local authorities with responsibility for social care to be allowed to levy a new precept of up to 2% on council tax, bringing almost £2 billion more into the care system.

Additional £1.5 billion for local authorities by 2019/20 through the Better Care Fund.

Basic state pension to rise by £3.35 next year to £119.30 a week.

Savings credit to be frozen at current level.

Chancellor sets aside £12 billion for Local Growth Fund and announces 26 new or extended Enterprise Zones, including Carlisle, Dorset and Ipswich.

Uniform business rate to be abolished and local government to keep revenue from business rates by the end of the Parliament.

Councils to receive an additional £10 million to help homeless people.

Councils to be allowed to spend 100% of receipts from sold assets to improve local services and encouraged to draw on reserves.

By the end of this Parliament, local government to be spending the same in cash terms as it does now.

Northern Ireland block grant to be more than £11 billion by 2019/20 and funding for capital investment in infrastructure to rise by more than £600 million over five years.

New funding floor for Wales set at 115%, and legislation to allow the devolution of income tax to Wales without a referendum. Welsh block grant to reach almost £15 billion by 2019/20 and capital spending to rise by more than £900 million.

Scottish block grant more than £30 billion by 2019/20 and capital spending to rise by £1.9 billion in the years to 2021.

Department for Transport operational budget cut by 37%, but transport capital spending to increase by 50% to £61 billion.

Transport spending to include electrification of TransPennine, Midland Mainline and Great Western, £11 billion for London infrastructure, and £250 million to relieve pressure from Operation Stack on Kent roads, as well as £300 million for cycling and £5 billion on road maintenance.

Environment department day to day budget cut by 15%, but £2 billion committed to protect 300,000 homes from flooding.

Spending on energy research to be doubled, and a new Shale Wealth Fund of up to £1 billion for communities affected by fracking industry. Support for low carbon electricity and renewables to more than double.

Support for climate finance to increase by 50% over the next five years, but Department for Energy and Climate Change budget to be cut by 22%.

Renewable Heat Incentive to be reduced by £700 million and energy intensive industries to be permanently exempted from environmental tariffs.

New domestic energy scheme to replace ECO will save 24 million households an average of £30 a year.

Reforms to compensation culture to cut more than £1 billion from cost of motor insurance, which could save motorists £40 to £50 a year.

Extension of small business rate relief scheme for another year and support for aerospace and automotive industries confirmed for the next decade at current level.

Business department budget cut by 17%, but science budget protected in real terms, rising to £4.7 billion.

Nobel laureate Paul Nurse to conduct review of science research councils.

Culture department core budget cut by 20% but cash increase for Arts Council, national museums and galleries. Free museum entry retained.

UK Sport receives 29% increase in budget.

New support worth £20 million for social impact bonds.

The £15 million raised each year from VAT on tampons to be used to fund women's health and support charities.

Government to fund renovation of military museums and support Winston Churchill Memorial Trust fellowships and contribute to memorial for Tavistock Square bus bomb victims.

Free 30 hours of childcare for three and four year olds to be available from 2017 only to parents working more than 16 hours and with incomes of less than £100,000.

Nursery sector funding to increase by £300 million.

Investment of £23 billion in school buildings and 600,000 new school places, with 500 new free schools and University Technical Colleges.

National Citizens Service to be expanded to 300,000 places.

Sixth form colleges to be allowed to become academies.

Total financial support for education and childcare to increase by £10 billion, and new national funding formula to be introduced for schools from 2017.

Part-time students to receive maintenance loans and tuition fee loans to be made available in further education, benefiting a total of 250,000 students.

Apprenticeship levy set at 0.5% of employer's pay bill from April 2017, with £15,000 allowance for each employer.

Conditions for benefits to be extended to more than one million more claimants, with those signing on required to attend jobcentre every week for the first three months.

Department for Work and Pensions resource budget cut by 14%.

Underused courts to be closed, freeing up £700 million for new technology to speed up justice. Old prisons - including Holloway - to be sold, allowing £1 billion spending on nine new prisons.

Tenants of five housing associations to be able to buy their own home from midnight tonight.

Restrictions on shared ownership to be removed and planning system reformed to deliver more homes. London Help to Buy scheme to offer interest-free loan worth up to 40% of the value of a newly built home.

New 3% surcharge on stamp duty for buy-to-let properties and second homes from April 2016, raising almost £1 billion.

Spending on Single Intelligence Account to rise from £2.1 billion to £2.8 billion by 2020/21 and defence budget from £34 billion to £40 billion.

Overseas aid budget to increase £16.3 billion by 2020.

Foreign Office budget protected in real terms.

There will be no cuts in the police budget at all, with funding protected in real terms.

The Chancellor concluded his statement at 1.38pm.











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