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Mrs. Louise Ellman (Liverpool, Riverside): Does the hon. Gentleman not recognise that the new Labour

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Government have already made available an additional £1.3 billion for education; that they have already taken steps to reduce class sizes in infant schools; that they have already made available more capital receipts to enable more public housing to be developed; and that they have financed that through the windfall tax--a great redistributive tax, which he should welcome?

Mr. Burstow: I am sure that, with her long and distinguished career in local government, the hon. Lady will understand the heartache experienced every year by council leaders when they receive the detailed figures from the Government, and will accept that this year will be no different. The reality is--

Mrs. Jackie Ballard (Taunton): Will my hon. Friend give way?

Mr. Burstow: Let me finish with this intervention before moving on to another.

I hope that the hon. Member for Liverpool, Riverside (Mrs. Ellman) will accept the Local Government Association's figures, which clearly show that, in order to put the extra money she mentions into education, councils will have to allocate money away from other services--in other words, there will have to be cuts elsewhere.

Mrs. Ballard: Does my hon. Friend share my concern that seven out of 10 social services authorities say that they will have to tighten eligibility criteria for care in the community if the Government continue the Tory spending plans for local authorities?

Mr. Burstow: I do indeed, and that brings me to my next point.

The problems facing social services can be summed up by three Fs: funding, fragmentation and false economy. In funding terms, local authorities are battling against Whitehall. I lay the blame for that not specifically at the Government's door, but at the door of a system which underestimates the actual cost of delivering community care.

This year, the average local authority social services department is spending 9 per cent. more than its standard spending assessment on social services. I sometimes wonder what would happen if every local authority social services department in this country spent down to its SSA--I suspect that the results would be devastating to many people.

Even the extra money the Government have promised to help social services and social work departments this winter seems far from certain to reach its destination. Written answers from Health Ministers suggest that far too many ifs and buts litter the path of funds from the Treasury to front-line care, so I hope that Ministers will offer an assurance this evening that the money will reach its destination and not be used to reduce NHS deficits, of which we know there are many.

Funding is not the only problem--fragmentation also plays a part. First, there is a lack of symmetry between the benefits system and social services. The objectives of the two conflict, to the disadvantage of the vulnerable in our society, and put barriers in the way of greater independence.

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Secondly, the interface between health and social care is not clear. The concept of a seamless service between health care and social care is a myth--the reality is better described as pass the parcel, and the price is expressed not only financially, but in terms of the individual's loss of dignity. Thirdly, there is fragmentation in legislation and case law governing the delivery of social care. Judgments like those involving Gloucestershire and Sefton have exposed the stark reality--that community care is not needs-led, but is about resource-led rationing.

It is now time for Parliament to address those issues, which is precisely why I have taken up Jack Ashley's Chronically Sick and Disabled Persons (Amendment) Bill. The House must debate how we can make progress with comprehensive reform of community care law, and the Government should give a wider remit to their royal commission on long-term care, so that we can tackle the issues raised by fragmentation.

Taken together, the problems of funding and fragmentation lead to false economy. Evidence gathered by the National Association of Citizens Advice Bureaux shows how the original objectives of community care have been distorted. Although targeting of support is a clear aim of community care, the reality for many people is that of care rationing--longer waits for assessment and care provision, tightening eligibility criteria and more and increasing charges, as my hon. Friend the Member for Taunton (Mrs. Ballard) described.

The consequences represent a false economy for society. As the NACAB report, "Rationing Community Care" states:


It is a false economy when one agency manages its budget by simply shunting its costs on to another, either directly or by storing up costs for the future, in education, housing, health and the criminal justice system. Increasingly, that is what is happening in an underfunded public service.

Unless the Government act now, the vicious circle of crisis management will not be broken, and those who put their faith in a Labour Government will be betrayed. We Liberal Democrats have our plans for raising extra resources, but the Government set the fiscal reality in which we must live, and it is in that context that I challenge them to invest a little extra money now, so as to avoid wasting far more later. There is nothing shameful about relaxing Tory spending restrictions, which even their Conservative architect dismissed as "for the birds".

Why will the Government not make use of the extra tax revenues their Budget will generate? The country can afford it, and the Treasury can afford it. Why not redirect some of the £5 billion tax windfall? Why not rechannel some of the £25 billion that will accrue to the Treasury as a result of the abolition of the pension funds tax credit? Why not invest some of these resources to protect local services now? Failure to do so will cost more in the long run.

The public will not thank the Government when they announce a spending bonanza in a few years' time, if the human costs continue to mount now. The social damage has been done, and service infrastructure and assets have been so undermined that they can no longer deliver--

Miss Melanie Johnson (Welwyn Hatfield): Would the hon. Gentleman care to comment on the record of

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Cornwall county council, which I understand is Liberal Democrat-controlled, which underspends its SSA on education, and which last year cut its adult education provision by half? How does that compare with the record that he has just been describing? Will he further comment on the fact that 47 per cent. of three and four-year-olds are found places in Liberal Democrat nursery education provision, compared with an average of 70 per cent. in Labour-controlled authorities?

Finally, the hon. Gentleman might like to comment on the record of Devon county council, also Liberal Democrat-controlled, in whose area I heard Bradley Rowe infant school--

Mr. Deputy Speaker: Order. The hon. Lady must not make a speech; she must remember that she is making an intervention and be brief.

Mr. Burstow: I have not been to that primary school, but I can deal with the hon. Lady's other points. Cornwall had a glowing Office for Standards in Education report for the excellence of its education. Secondly, I hope that later this year the hon. Lady will go through the Lobbies with me to vote against capping, because it was capping that led to the cuts that she has described.

Thirdly, head teachers and others in Cornwall accept that it was the LEA in Cornwall--as she rightly says, it is Liberal Democrat-led--which managed to minimise the damage done by the Conservative Government with their capping policies. So I am proud to be associated with the work that Cornwall does. The hon. Lady should take a closer look at the record before intervening next time.

Rather like Ebenezer Scrooge in "A Christmas Carol", the Government, I hope, have now seen Christmas past: they have rightly condemned Tory spending cuts. Now we are approaching Christmas present, and the Government are about to implement those Tory spending cuts. But there is still Christmas yet to come. Will it be a bleak one, with rundown, impoverished public services; or will the Government, like Scrooge, heed the warning signs, and act now before it is too late?

6.1 pm

Mr. Gareth R. Thomas (Harrow, West): It is certainly true that until 1 May this year all local authorities and public services faced considerable financial pressures. Moreover, morale in many of the public services was falling and standards were under intense pressure. Had this debate taken place before 1 May, many of the points that we have heard Liberal Democrats make today would have been apposite.

The problem with this debate is the Liberal Democrats' failure to recognise the progress that the Government have made in tackling the problems that faced the public services when we came to office. They have wasted their opportunity to look at how we can move the Government's agenda forward to improve education, the health service, social services and policing.

It is worth recounting some of the additional resources that the Government have provided for the public services. They have given an extra £1.3 billion for schools revenue spending this year; and £1.2 billion more for the capital works needed to restore so many of our crumbling

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schools. The tragedy is that the Liberal Democrats have failed to deal with the other important education issues that require attention--it is not just a question of resources. We must also consider the standards attained by the education service.

The Liberal Democrats have failed to support the Government's White Paper on standards; nor have they offered any praise for the Government's commitment to additional support for head teachers and to improving the qualifications of teachers and head teachers alike. The Liberal Democrats have offered no commitment to support the Government's work on establishing a general teaching council, nor have they praised the Government's requirement that local education authorities prepare education development plans for schools and their local partners.

I have heard no praise from the Liberal Democrats for our guarantee of a nursery place for every four-year-old, nor for the fact that we have begun the task of providing a place for every three-year-old. They have given us no praise for abolishing the assisted places scheme and using the released resources to reduce class sizes for five, six and seven-year-olds. There has been no praise for the campaign for literacy launched in the summer by my right hon. Friend the Secretary of State for Education and Employment.


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