Latest Public Sector News

10.11.17

Social care to cost 60% of council tax by 2020

Almost 60p in every pound of council tax could be spent on caring for children and adults by 2020, according to local councils.

Figures from the Local Government Association suggest that council budgets are becoming increasingly strained by the rising demand for adult social care and children’s services.

In 2010-11 41p of every pound of council tax was spent on these services, but the LGA predicts that this will increase by 15p per pound by 2019-20.

Consequently, the LGA says that less funding will be available for other vital services, such as waste collection, road improvements trading standards, licensing and food safety.

It warns that the money that local government has to provide such services is running out.

According to the LGA, by 2020 England’s local governments will have lost 75p out of every pound of Revenue Support Grant funding that it received from the government in 2015.

By 2019/20 almost half of all councils will no longer receive any of this core central government funding.

In addition, the government’s plans to allow councils to keep all of their business rates income by the end of the decade have been cast in doubt since the Local Government Finance Bill was not reintroduced in the Queen’s Speech.

The LGA has said that it is essential for local government to keep these business rates to "plug the growing funding gaps.”

It also argues for a fairer system to distribute funding between councils.

Councillor Claire Kober, chair of the LGA’s resources board, said: “Within two years, more than half of the council tax everyone pays could have to be spent on adult social care and children’s services.

“Councils will be asking people to pay similar levels of council tax while, at the same time, warning communities that the quality and quantity of services they enjoy could drop.”

She said that England’s local governments face a funding gap of £5.8bn by 2020.

She continued: “Even if councils stopped filling potholes, maintaining parks and open spaces, closed all children’s centres, libraries, museums, leisure centres, turned off every street light and shut all discretionary bus routes they still would not have saved enough money to plug this gap in just two years.

“An extra £1.3bn is also needed right now just to stabilise the perilously fragile care provider market.

“The government must recognise that councils cannot continue without sufficient and sustainable resources.

“Local government must be able to keep every penny of taxation raised locally to plug funding gaps and pay for the vital local services our communities rely on.

“With the right funding and powers, local government can play a vital role in supporting central government to deliver its ambitions for everyone in our country.”

Have you got a story to tell? Would you like to become a PSE columnist? If so, click here.

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >

public sector focus

View all News

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

NSPCC: Working together to improve the support available for children who have been sexually abused

08/10/2019NSPCC: Working together to improve the support available for children who have been sexually abused

Hayley Clark, the acting head of development and impact at the NSPCC, talks about the significant gap in support services for children who have been sexually abused and the Ho... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >