Social care services in the firing line to stop councils hitting bankruptcy
A survey of council chief executives reveals social care funds are likely to be cut so local authorities can better balance their books.
New research from the Local Government Association (LGA) was published this morning, which coincides with the start of their Annual Conference in Harrogate. The survey found that funding shortfalls are projected to exceed more than £2bn next year, suggesting one in four councils in England could hit bankruptcy if central government fails to intervene.
Cllr Louise Gittins, LGA chair, said: ‘Councils are the backbone of communities. Every day they strive to protect vulnerable children and families, support our older or disabled loved ones to live independent lives, keep our streets clean ad pothole-free and build affordable homes but this is becoming increasingly difficult.’
The survey revealed that an unprecedented 18 councils were given Exceptional Financial Support (EFS) from the government in February to help meet their legal duty to balance their books. The decision granted local authorities unusual permission to borrow money and sell land and buildings, which the LGA warned provided ‘temporary financial relief’ but could overload ‘already struggling councils with further debt and costs in the future’.
Against this backdrop, the survey also found one in ten councils have already discussed receiving emergency support with the Ministry of Housing, Communities and Local Government.
Within the survey, the LGA asked local authorities to identify their top five pressures. Among upper-tier councils, children’s and adult’s social care was highlighted to be the biggest concern – with over 90% of councils citing it as a problem. What’s more, special educational needs and disability services came in as a close second (80%).
For district councils in more rural areas, the biggest pressure was homelessness, which was outlined by 85% of respondents, followed by waste services (82%).
Against this backdrop, almost eight in ten councils said support for disabled adults and older people were likely to face cutbacks, while two-thirds remarked the same about services for children and families.
Cllr Gittins added: ‘The unprecedented emergency support given to councils this year reveals the extraordinary funding emergency facing local government. As our survey shows, many more councils are being pushed into a precarious financial position.
‘This is not just about numbers on a spreadsheet. Budget cuts needed to plug growing funding gaps will affect the most vulnerable members of society and the services our communities rely on every day.’
Following these tragic findings, the LGA is now calling on Chancellor Rachael Reeves to stabilise council finances in the upcoming Autumn Budget, including a multi-year settlement and a review into changing the local government funding system.
‘The Autumn Budget must provide councils with the financial stability they need to protect the services our communities rely on every day,’ Cllr Gittins said.
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