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The outlook for councils’ funding: is austerity over?

 

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The outlook for councils’ funding: is austerity over?

A growing elderly population, increases in the number of disabled adults, and increases in wage and other costs, mean that English councils will likely need billions in extra funding over the next parliament if they are to meet the rising costs of providing adult social care. That will be required just to maintain services at current levels.

Analysis by the Institute for Fiscal Studies shows that, with councils now largely dependent on council tax and business rates to fund their spending, a growing gap is likely to open up between their income and what they need to meet the rising costs of service provision, especially for adult social care.