public health and social care

16.01.17

CCN: Funding mismatch has put council services at ‘significant crossroads’

England’s county leaders have warned that the “fundamental mismatch” between funding and demand for social care has put councils at a “significant crossroads” when it comes to guaranteeing the sustainability of statutory services.

In its local government finance settlement submission, the County Councils Network (CCN) has called for a long-term solution including “genuinely new funding” in March’s Budget rather than short-term measures such as the frontloading of the social care precept and the redirection of New Homes Bonus (NHB).

The CCN highlighted that increasing the precept to 3% for two years will only have a ‘nominal effect’ and would actually make county councils worse off by 2020 if they amend their original plans to raise council tax by 2%.

“Unless we have genuinely new funding, services the sick, elderly, and vulnerable depend on will continue to have a question mark hanging over them,” said Cllr Paul Carter, chairman of the CCN.

“Fresh resource will provide a platform to integrate services, stabilise care markets, and to revisit the cap on care.”

Local government has been hit hard by the government’s austerity measures, having been subject to an estimated real-terms funding reduction of 37% since 2010.

The CCN argued that the increase in the precept will still leave county councils reducing their reserves and services next year due to their “disproportionate” council tax burden and the 93% drop in core grants they will receive by 2020.

The CCN’s submission welcomed the re-routing of the NHB as a “logical step” in tackling the social care crisis, with the government making changes such as the introduction of a 0.4% baseline for housing growth, but this reform to the NHB has not been universally received with the District Councils’ Network (DCN) saying last week that it would disproportionately damage district councils.

This controversy has led to the CCN proposing targeted transitional measures for upper-tier councils facing a further reduction in funding as a result of the changes.

According to the CCN, over half of the country’s population over 65 live in counties, with the figure set to grow faster than other areas by an average of 2% every year up to 2020. However, counties receive the lowest per head funding for elderly people.

The CCN has called for the government to speed up its needs-based review of how local authorities are funded, saying bringing the timetable forward would “go a long way to ensuring that social care is sustainable” and help county councils address the problems around them.

“Empowered county authorities must play a key part in fixing the social care funding crisis,” Cllr Carter said. “They must be trusted to lead the integration drive, and government must build upon counties’ expertise, financial prudence, and size to deliver fundamental reform as part of a long-term solution.”

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

Comments

Asdf   18/01/2017 at 10:34

dsfa

Add your comment

related

public sector executive tv

more videos >

latest public sector news

Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

19/08/2020Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

Leeds City Council have today (August 19) announced that their plans for a Clean Air Zone within the city may not have to go ahead due to lower e... more >
Apprenticeships on the rise across London boroughs

19/08/2020Apprenticeships on the rise across London boroughs

According to recent statistics by London Councils, apprenticeships directly created by London boroughs are up 14% on the previous  year. ... more >
Dorset LEP allocates £2.28m to improve local NHS services

19/08/2020Dorset LEP allocates £2.28m to improve local NHS services

Dorset Local Enterprise Partnership (LEP) is investing £2.28m of the Government’s Local Growth Deal funding into the creation of a ne... more >

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 ... read more >

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... more > more last word articles >
Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

19/08/2020Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

Leeds City Council have today (August 19) announced that their plans for a Clean Air Zone within the city may not have to go ahead due to lower emissions during the lockdown period. The coun... more >
Apprenticeships on the rise across London boroughs

19/08/2020Apprenticeships on the rise across London boroughs

According to recent statistics by London Councils, apprenticeships directly created by London boroughs are up 14% on the previous  year. Between April 2019 and March 2020, London boroug... more >

the raven's daily blog

Cleaner, greener, safer media: Increased ROI, decreased carbon

23/06/2020Cleaner, greener, safer media: Increased ROI, decreased carbon

Evolution is crucial in any business and Public Sector Executive is no different. Long before Covid-19 even became a thought in the back of our minds, the team at PSE were looking at innovative ways to deliver its content to our audien... more >
read more blog posts from 'the raven' >

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. Being on the receiving end of some “thanks” can make communit... 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 that community-led initiatives are a productive way of helping to solve... more >
Aberdeen's green transport fleet attracting international attention

19/06/2019Aberdeen's green transport fleet attracting international attention

Aberdeen City Council’s hydrogen spokesperson, councillor Philip Bell, highlights the Granite City’s determination to play a leading ... more >
A fifth of public sector workers have never received a thank you from the people they serve

13/06/2019A fifth of public sector workers have never received a thank you from the people they serve

A fifth of the country’s public sector workers say they have NEVER received a ‘thank you’ for doing their job as Public Service... 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 to invest in technology to help make better use of their resources. Bu... more >
Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welcomed a new member to its team. Matt Spencer, O2’s head of public ... more >
New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has outlined his approach to culture and work with employees, arguing tha... more >
Keeping the momentum of the Northern Powerhouse

15/10/2018Keeping the momentum of the Northern Powerhouse

On 6 September, the biggest decision-makers of the north joined forces to celebrate and debate how to drive innovation and improvement through th... more >

Public Sector Focus

View all News