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Financial sustainability of local authorities

 

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Financial sustainability of local authorities

A report from the House of Commons Committee of Public Accounts finds that local authorities are under real strain after seven years of government funding reductions totalling nearly 50 per cent and rising demand for services.

Key services that support vulnerable people, such as social care and housing, are now under enormous pressure. The harsh reality is that more and more local authorities are now showing signs of financial stress such as overspending on services. They now face a period of greater uncertainty as their funding framework beyond 2019/20 is unclear.

The report notes that the recent announcement about additional money for the NHS did not include anything for social care and says it is vital that there is a long-term sustainable solution to funding social care.