Further warnings about local government funding add fuel to the need for support

It is clear from the warning issued by the County Councils Network (CCN) that the Government cannot turn a blind eye to the plight of local authorities. Analysis by the CCN drives home the importance of the Chancellor’s upcoming budget.

The £54bn funding black hole is fuelled by rising demand and costs in just three service areas: adult social care, children’s services, and home to school transport.

Together, they account for 83 per cent of the total increase in costs councils are projected to be spending on services by 2030.

That is why councils that have sounded the alarm cannot be accused of profligacy. The crisis is spreading across councils of all stripes, sizes and geographical locations.

Raising council tax annually by 3 per cent would reduce the shortfall by a third to £37.6bn, but the CCN says that the Government should not rely on rises above 3 per cent to close the remaining shortfall as local authorities would still be left to find billions each year.

It is widely accepted that the Government has inherited a dire financial situation. But while financial assistance for councils is necessary, so is the need for reform of adult social care and children’s services. Incentivising mainstream schools to become more inclusive for SEND (Special Educational Needs and Disabilities) pupils would help reduce the amount local authorities need to spend.

There is also a strong case for intervening in the market to cap provider fees for residential placements for children and addressing the spike in costs for adult social care services for those of working age.