CIPFA Statement: Difficulties remain following funding boost


The £600m support package for councils providing crucial care services and the additional 4% minimum core spending power announced today is welcome. However, it remains the fact that funding still falls short of resolving local councils’ financial and operating issues in the face of growing demand. The need for a local government finance model reform remains.

It is a relief that the government is listening to councils regarding the significant social care pressures they are facing, but the devil is in the details. It is yet another instance of an ad hoc injection of cash, outside of the proposed financial settlement.

The additional £500m to the social care grant equates to approximately £3.2m per local authority. While this extra funding may alleviate some of the worst cuts to social care services, it will not address the longer-term financial challenge of delivering social care amid a climate of significant and growing demand. Despite additional funding, some local authorities are left with no choice but to raise council taxes.

Iain Murray, CIPFA Director of Public Financial Management, said: 

“While we welcome this extra money, indicating that government is willing to listen and act on some of the challenges that local government is facing, it is not the much-needed lifeline for many with significant unmet costs.

“Without a sustainable, long-term funding approach, we can still expect a reduction in social care services.

“If the government is to meet demand and cover the significant growing cost pressures that councils face, long-term funding solutions must be found.”

Notes to editor

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