Category: Press Releases

The press release issued by the County Councils Network on 28 October 2022.

Promised reforms to children’s social care are long overdue and vital to improve the life chances of young people whilst protecting councils from spiralling costs, local authority leaders today warn.

The County Councils Network (CCN) says that the new government needs to begin ‘urgently’ implementing the key recommendations of an independent review into children’s social care, which concluded five months ago – and put council-run care services on a sustainable footing.

Failure to do so could mean that the number of vulnerable children being placed in council care could reach almost 100,000 by 2025 – up from 69,000 in 2015, with councils set to spend £3.6bn more a year on these young people compared to 2015. Left unchecked, the costs of children in council care could consume 60% of an average local authority’s budget by the middle of the decade.

Point 5 – Achieving a Bright Future for Children and Young People – makes the other following key recommendations:

The government must support county authorities in meeting the costs and demands in home to school transport.
Proposed reforms to the SEND system must be completed – and that proposals put the system on a sustainable financial footing.
County authorities should continue to play an influential role in the education system.
In terms of children’s services reform, the previous government had committed to set out an implementation plan by the end of 2022. CCN says that children and councils ‘cannot afford to wait’.

Council leaders say it is imperative the government invests £2.6bn into children’s services – as recommended by the review – to help reverse the steep number of children going into care. Children who require council-arranged care are the most expensive part of a council’s children’s services. With demand and costs rising each year, councils overspent their Looked After Children budgets by £450m last year – a 9% overspend.

Extra funding injected into the system could allow local authorities to invest in preventative services, which have been reduced due to funding pressures, and transform how they work. Councils have reduced their expenditure on preventive services by over £400m since 2015, due to funding pressures.

Investing £2.6bn between 2023 and 2027 will allow local authorities to implement a new ‘optimised model’ of delivering children’s services through reforming the way they currently work. This would include investing in early help services and their own work practices and recruiting more foster carers, helping to reduce the number of children going into care and make the system more sustainable over time.

Previous CCN projections estimate that up to 31,000 young people could live safely with their families and communities rather than in the care of local authorities, based on projected figures of children in care by the end of 2025. This would mean the number of children in care could decrease to 64,000 – significantly less than the highest projection of 95,000 if nothing is done.

CCN says that these figures show that the status quo is no longer an option – and reforms to the system are long overdue. The network has called on the new Education Secretary to begin setting out a reforms package that incorporates many of the key recommendations from the independent review, and inject more funding into the system from next year.

Councils must be at the heart of any reform with local authorities working in partnership with the government, schools, and charities to ensure they are delivered and resource is targeted most effectively.

After the independent review concluded in May, a Children’s Social Care National Implementation Board was subsequently set up to be chaired by Schools Minister Kelly Tolhurst MP and to advise ministers on the implementation of these proposed reforms. Outside of a commitment from the previous government to publish a plan for reform the end of 2022, there has been little update.

Cllr Keith Glazier, Children’s Services Spokesperson for the County Councils Network, said:

“Both councils and successive governments recognise that the status quo is no longer an option for children’s care services. Left unchecked, the number of children in care could reach almost 100,000 in less than three years’ time. This is far too many – young people need to be better supported to stay with their families or carers, wherever safely possible.

“The independent review was a landmark report that clearly articulated the need to invest in the system and allow local authorities to take the lead in developing a reformed system which works better for young people and protects them from serious harm.

“With many councils overspending on budgets due to the expensive nature of children in care, we need to break the cycle and reform is long overdue. Whilst we appreciate there is a commitment to set out a plan by the end of the year, both councils and young people cannot afford to keep waiting. Now it is in place, the new government must urgently begin to set out proposals in the coming weeks to reshape the system, starting with a pledge to invest in preventive services.”

The call comes in the last chapter of CCN’s Five Point Plan for County and Unitary Councils, which you can download here.

The press release issued by the County Councils Network on 27 October 2022.

England’s largest councils today warn that any moves to cut their budgets next year would be ‘worse than austerity’ and result in ‘devastating’ reductions to local services – with local authorities offering just the bare minimum.

With the new Chancellor Jeremy Hunt reportedly asking all government departments to look for further savings, the County Councils Network (CCN) warns in a letter to the Treasury that prospect of funding reductions on top of soaring inflation would be ‘unthinkable and devastating’ for services.

New analysis from the CCN reveals that county authorities in England are grappling with £3.5bn in inflationary and demand costs this year and next – which is more than double the expected rise.

In the letter, Cllr Tim Oliver, CCN Chairman and Leader of Surrey County Council says that the Treasury should be under ‘no illusions on what the impact will be on local services’.

CCN warns that a further round of cuts when inflation is leaving multi-billion-pound hole in councils’ budgets would be ‘worse than austerity’, where council budgets were reduced each year between 2010 and 2018. A return to this would leave councils having to dramatically review what level of services they are able to realistically provide to people and result in a ‘bare minimum’ core offer of services.

This is because new analysis from CCN projects that for 40 of England’s largest county and unitary authorities, they face huge inflationary and demand pressures this year and next which could add £3.5bn to their costs. These rising costs are more than double that of previous estimates by PwC for CCN, which estimated costs would rise £1.5bn over the same two-year period due to a combination of service demand and inflation.

Rising costs of delivering day to day services due to inflation make up £2.86bn of this figure, whilst projected rises in demand for these services are set to add £647m to costs. These additional costs mean councils are already facing a real-terms cut in funding this year and next, before the possibility of further reductions which may be imposed as part of the government’s Medium-Term Financial Plan.

In addition, inflation is projected to add £700m to capital costs, such as building new roads, junctions, building refurbishments this year and next.

Last year’s Spending Review provided an uplift in funding for key services, but this has been wiped out by rising inflation; with two-thirds of councils say they are going to overspend their budgets this year without making savings and cuts.

Faced with £1.78bn of inflationary and demand costs in 2023-24, councils are already having to consider reducing the number of social care packages, libraries, bus routes, school transport and road maintenance budgets, but additional spending cuts would further diminish these services to the bare minimum of what they are legally required to provide.

If further reductions are proposed, CCN says that many of its member councils could look to propose a ‘core offer’ or minimum level of service to stave off financial bankruptcy – meaning councils would only be able to deliver statutory services, such as providing residential or homecare for those most in need of social care, services to protect children at risk of harm and neglect and a basic level of roads maintenance.

Services that would be at risk of being reduced would be preventive children’s services and social care services, leaving councils only focusing on those in crisis. This could mean a reduction in Early Help support to families, and less preventive training for social workers. It could mean reviewing support plans for working age adults in who require adult social care, a reduction in the amount of time spent by homecare staff with individuals.

Council leaders say that this would lead to a false economy and cost the public purse more in the long run, but they may have little choice.

CCN argues that the Treasury must maintain existing 2021 Spending Review commitments, including the £1.6bn of additional resources committed up to 2024/25, but they will need to go further to support councils to cope with rising inflationary costs by increasing direct funding or reprioritising existing spending commitments. This includes delaying reforms to adult social care and reinvesting earmarked funding for implementing the reforms for existing pressures within the system.

Cllr Tim Oliver, Chairman of the County Councils Network and Leader of Surrey County Council, said:

“Between 2010 and 2018 local government took the brunt of austerity, with councils seeing their budgets halved. A return to this has set off alarm bells for council leaders, who year after year delivered savings to reduce the national deficit.

“Considering inflation and demand is set to add £3.5bn to our costs, this would be worse than the period of austerity and devastating for local services. We will be left with unpalatable decisions, with many likely to have to resort to a very basic ‘core offer’ level of services despite this ultimately being a false economy and adversely hitting the most vulnerable in our society.

“I know the new Chancellor faces some very difficult decisions, but and our message is unambiguous: with inflation causing multi-billion black holes in our budgets, we need more help, not less.

“There is simply no longer any easy ‘efficiency savings’ or low hanging fruit to cut from councils. Recent increases in funding staved off the prospect of a ‘core offer’ of services becoming a reality, but we are now facing down the barrel of this once again.”

Download the new CCN analysis Council Budgets 2022-24: Counting The Costs of Inflation here.

The press release issued by the County Councils Network on 25 October 2022.

Tonight it has been announced that Michael Gove is the new Secretary of State for Levelling Up, Housing, and Communities, returning to the role he had held until this summer.

Below, the County Councils Network responds.

Cllr Tim Oliver, Chairman of the County Councils Network, said:

“The County Councils Network (CCN) would like to welcome Michael Gove back to the position of Levelling Up Secretary. Michael demonstrated during his previous time in the department that he was a strong supporter of local government around the cabinet table, and understands the opportunities and challenges facing councils right across the country.

“We worked closely with Michael and his ministerial team to develop the Levelling Up White Paper and then the Levelling Up and Regeneration Bill, and it is now critical that levelling up is delivered across England. Key to this will be keeping the momentum going on the county devolution agenda, and this should include a clear commitment to the principles underpinning the white paper and turbocharging devolution, starting with announcing the next set of areas to agree devolution deals, and opening up a second round of county deal negotiations.

“Earlier this year Michael committed to providing financial certainty to the sector and we now want to work with him to deliver this. Investing in and empowering county authorities will go a long way to ensuring that local areas can boost economic growth and bolster England’s productivity in the long run, while ensuring that residents have access to excellent services and the most vulnerable are protected.

“But as a result of soaring inflation and increases in demand for services, councils face an extremely challenging few years ahead. It is imperative that the Secretary of State makes a clear case to the Treasury that local authorities cannot have any further funding reductions and he supports the case for additional financial support. This includes supporting our call for the government to delay charging reforms to adult social care in England, ensuring that all earmarked funding is retained and reinvested in frontline services to help meet the inflationary costs facing services this year and next.

“We are also likely to see further proposals on housing and planning put forward in the coming period. This new government should empower county councils with strategic planning powers and a greater role in capturing developer contributions, so that infrastructure adequately matches new development, unlocking further economic growth.”

The press release issued by the County Councils Network on 24 October 2022.

Today Rishi Sunak has been announced as the next leader of the Conservative party, and will become the new Prime Minister.

Below, the County Councils Network responds to this afternoon’s announcement.

Cllr Tim Oliver, Chairman of the County Councils Network, said:

“On behalf of the County Councils Network’s (CCN) member councils, I would like to congratulate Rishi Sunak on becoming Prime Minister. As a former local government minister, the new Prime Minister knows the vital role county authorities play in delivering economic growth, protecting the vulnerable, and delivering vital day-to-day services that the country relies on.

“We worked closely with the new Prime Minister when he was Chancellor during the pandemic, showing how successful local and central government can be when working as one for local residents and businesses. CCN and its member councils will do all they can to continue this track record of delivery. In particular, we know Mr Sunak is a strong supporter of devolution and recognises the transformational impact devolving powers to local areas could have in boosting growth and in levelling-up. Over the coming weeks, we urge his administration to renew its commitments to the Levelling Up Whitepaper and turbocharge devolution, with at least two-thirds of CCN member councils beginning negotiations on a deal for their areas by the end of this Parliament.

“While empowering counties through devolved powers can do much to achieve the economic ambitions of this government, we recognise this administration’s immediate priority will be taking steps to set out a new fiscal mandate in the statement on October 31st.

“The CCN has been clear about the acute financial challenges facing local authorities at present, driven by soaring inflation and increases in demand for services. With a cost-of-living crisis and the need to grow the economy, it is vital that councils have access to the necessary funding to provide excellent services to residents and support local businesses to drive economic growth and productivity. That is why it is critical that any spending cuts do not fall on local government, with the government at the very least maintaining all the funding commitments made at the time of the Spending Review last year.

“However, the government will need to go further to support councils to cope with rising inflationary costs and prevent reductions to services. CCN recognises that tough decisions will need to be taken to prioritise public spending, and that is why one of the first decisions the Prime Minister and his new Chancellor should make is to delay the forthcoming charging reforms to adult social care services. By delaying the reforms but retaining and reinvesting funding earmarked for these proposals in local government, it would help ease the inflationary and workforce pressures facing social care authorities. We also urge the government to retain a commitment by the previous administration to rebalance funding between health and social care, allocating more of the £13bn committed to tackling the NHS backlog towards councils to help reduce pressure on social care services and the wider health system.”