LGA warn further cuts to services needed to pay for social care

By The Press Association24th March 2015News EnglandBusiness / Funding / Finance, Finance, Local Authorities, News England, Social Care

Councils could be forced to make cuts to libraries and bus services to meet the rising demand for social care, the Local Government Association (LGA) has warned.

Spending on social care for vulnerable children and adults is set to account for 60p in every £1 of council tax collected in 2019/20, the LGA predicted, up from 41p in 2010/11.

The LGA warned councils will have little choice but to squeeze budgets for libraries, roads and street lighting in order to meet the demand for care services.

The figures indicate that in 2019/20 just 1p in every £1 of council tax will be spent on street cleaning and flood defences, 5p will be spent on road maintenance and street lighting and just under 5p to fund libraries, leisure centres, parks, museums and arts.

The analysis is based on an assumption that cuts in central government funding will continue at a similar level to the last five years and there are no significant changes to council tax.

LGA chairman David Sparks said: “This analysis shows the pinch that families all over the country will feel from central government continuing to reduce funding for local services

“It is likely that people will be paying similar levels of council tax over the next few years but most will see a lot less in return.

“People are rightly going to question why their streets and parks are less well kept, the local library is closing and bus services are being cut when they are still paying roughly the same council tax each month.

“The reality is that, within a few years, well over half of the council tax everyone pays will have to be spent on social care.

“With demand on these life-and-death services continuing to rise and funding from central government continuing to fall, councils will have little choice but to squeeze budgets for libraries, roads and street lighting.

“No part of the public sector has faced bigger cuts to funding than councils during this parliament and the efficiency savings local government has made since 2010 cannot be made again.

“If the services which bind together communities and underpin people’s daily lives are to survive the next few years, the next government must provide fair funding and give local authorities the freedom required to pay for them.”

The LGA analysis suggests that the average band D taxpayer, with a £1,468 council tax bill, would contribute almost £800 per year to social care and just under £16 per year on street cleaning and flood defences, £70 to street lighting and £59 on libraries, parks and leisure services.

Local Government Minister Kris Hopkins said: “From April our £5.3 billion better care fund will invest new money in joining up health and social care, so that people can live at home for longer with dignity and independence and get home from hospital more quickly when they do have to be admitted.

“In 2015/16 alone this is projected to prevent up to 160,000 A&E admissions, speed up over 100,000 delayed transfers of care and save £500 million of taxpayers’ money too.

“Despite the LGA’s continued warnings and false claims the truth is that councils have continued to balance their budgets while public satisfaction with services has been maintained.

“There are further sensible savings that can still be made such as back office mergers, cracking down on fraud, using some of the £21 billion of councils’ reserves and increasing council tax collection rates before frontline services are hit.”