Tag: County Councils Network

  • PRESS RELEASE : Pandemic triggers dramatic rise in people leaving the jobs market in rural county areas [February 2023]

    PRESS RELEASE : Pandemic triggers dramatic rise in people leaving the jobs market in rural county areas [February 2023]

    The press release issued by the County Councils Network on 4 February 2023.

    Over 100,000 people have taken the ‘lifestyle choice’ of early retirement in England’s county areas during the pandemic, contributing to hundreds of thousands of people leaving the jobs market over the last three years.

    Council leaders are calling for extra powers over employment and skills to be devolved to their areas to help encourage these ‘missing’ workers back into employment as new analysis from the County Councils Network (CCN) reveals that over 320,000 more people have become economically inactive in England’s 36 county areas compared to the outbreak of Coronavirus in March 2020.

    The findings come in a new CCN Analysis report, which analyses Office of National Statistics’ Annual Population Survey dataset for March 2020 and September 2022 to ascertain where, and for what reason, people have left the employment market pre and post pandemic. The analysis includes local authority type, regional and CCN member council level data.

    Download the report here.

    The report shows that just over 100,00 of these people are early retirees, particularly those aged between 50 and 64, which is over two-thirds of England’s entire increase in those retiring early. There has also been a sharp rise in long-term sickness in counties where 70,000 more people are now economically inactive for this reason, which is over half of the country’s increase.

    The data suggests that people have made different lifestyle choices since the start of the pandemic, such as choosing to retire early during the three national lockdowns.

    With over 3m people now economically inactive in county areas – one in five workers – county leaders warn that this issue is contributing to the labour crisis where there are not enough workers for the number of jobs available, hampering local growth and productivity at a time when they ‘desperately need local economies to be dynamic and thriving’.

    For the first time, the CCN has analysed where in England people have left the employment market between March 2020 and September 2022:

    • The number of economically inactive people in England has grown from 7m to 7.243m, largely as a result of a 12% (320,300) increase in the number of economically inactive people in England’s 36 county and rural areas – squeezing local labour supply.
    • In contrast, major cities and towns across the country saw a decrease in economically inactive people, with London seeing a drop of 20,100 people and the eight largest ‘core cities’ in England which collectively saw a drop of 26,500 people. Metropolitan boroughs, which cover areas in the North and West Midlands, 17,000 fewer people becoming economically inactive.
    • In total, 100,300 extra people took the lifestyle choice of early retirement in county areas compared to pre-pandemic levels, a 21% increase over the 36 months. This trend is up in all areas of England but has risen the steepest in counties – over four times the total amount of councils in London and metropolitan borough areas which are located in cities and towns in the North and West Midlands.
    • Some 56% of all those who have retired early are now in county areas, up from 54% from March 2020. Approximately 1 in 25 working age adults in counties are now retired early. This compares to 1 in 35 in metropolitan boroughs and 1 in 63 in London now retired early.
    • The number of people on long-term sick in county and rural areas has increased 10% – 70,000 people – significantly more than the total for the council areas covering rest of England. The bulk of the remainder of the rise in economically inactive people in counties is attributable to an increase in students (+181,800).
    • The East Midlands has seen the largest increase of people become economically inactive since the start of the pandemic (+10.4% and 60,400 people), including the highest increase of early retirees (+31.3%) and the highest rise in long-term sick (+16.6). The South East had the second largest increase (+9.7% and 93,500 people) and the North West the third highest (+6.7% and 70,700 people).

    The CCN says that devolved powers in skills and employment, as well as a greater influence over economic growth, is vital to addressing these issues and incentivising or enabling individuals back to work.

    So far the government has agreed devolution deals with seven county areas, which have included devolved adult education budgets and powers. But with 29 county areas in England still without access to these powers, CCN is urging the government to agree build on this head of steam and agree deals with as many county areas as possible in 2023.

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

    “The number of working age people not seeking employment has been an issue for a number of years, with this trend accelerated by the pandemic. But today’s data shows that county and rural areas have seen a dramatic rise and account for the vast majority of new ‘missing’ workers since March 2020.

    “A significant proportion of this rise is attributable to an increase in students who are the workers and innovators of tomorrow. But there has also been sharp rise in the lifestyle choice of early retirement, as well as an increase in long-term sickness, taking 170,000 people out of the employment market in county areas. At a time when we desperately need our local economies to be dynamic and thriving, having a labour shortage impacts on growth and prolongs recession.

    “Therefore, we need more ways to encourage early retirees back into the labour market and to support people who are on long-term sick to come back into employment. But this should be locally led; what could work in Durham could be different in Devon. The deals negotiated with seven county areas in 2022 could be transformative – and we urge the government to build on this momentum and agree further deals with as many local leaders as possible in 2023.”

     

  • PRESS RELEASE : New report suggests greater use of digital technology is a crucial step in reforming adult social care [February 2023]

    PRESS RELEASE : New report suggests greater use of digital technology is a crucial step in reforming adult social care [February 2023]

    The press release issued by the County Councils Network on 2 February 2023.

    Tunstall Healthcare and the County Councils Network (CCN) have today launched a brand-new report which argues that the potential of technology to support those with social care needs is growing ‘exponentially’ each year.

    This new report follows  the 2021 report ‘Employing Assistive Technology in Adult Social Care’, also delivered by the CCN and Tunstall and looks into the impact of digital technology on adult social care, and the importance of implementing digital change across the care landscape.

    Download the report here.

    As well as transforming services, the report finds that digital transformation can hugely benefit care users, from allowing more independence to widening understanding around condition management and reducing anxiety.

    Tunstall’s work with the CCN has detailed a strategic pathway to adopting digital technologies effectively into the care sector, from enabling local authorities, through to ensuring smooth delivery of care and finally, embedding the change for good.

    Practical steps recommended in the report include:

    • Not underestimating the time it takes to embed change.
    • Thinking about what good procurement processes look like from a market perspective.
    • Working in partnership with providers to deliver effective TEC and data led practice.

    ‘Adopting the right technology to transform social care’, written by experts from both organisations, will be unveiled to stakeholders and decision makers digital webinar today (2nd February). The event was hosted by Tunstall and the CCN, alongside Cllr Martin Tett, leader of Buckinghamshire Council who chaired the panel and James Bullion, Executive Director of Adult Social Care Services, Norfolk, who provided a local authority perspective.

    Cllr Martin Tett, Social Care Spokesperson for the County Councils Network, said:

    “The adult social care sector faces many challenges, but there are effective solutions that can help to bring efficiency, ease the burden on staff and ensure targeted care for those who need it. This new report sets a precedent for implementing technological advancements within social care services and provides an informative guide for how to create lasting, positive change at a community level.”

    Simon Edwards, Director of the County Councils Network, added:

    “This report is the natural sibling of our previous work with Tunstall in 2021. Perhaps most importantly, this piece discusses how we get the right care to the right people,  the right devices and technology into people’s homes, and how we can support an ageing population with a stretched workforce.”

    Gavin Bashar, Managing Director of Tunstall UK&I said:

    “The adoption of digital technology has great potential to contribute to  the smooth running of adult social care services as we look to the new government reforms for the care sector. This new report provides a summary of some of the benefits offered by care technology as well as practical suggestions for the implementation of these changes.”

  • PRESS RELEASE : Government reforms for children’s social care put forward – CCN response [February 2023]

    PRESS RELEASE : Government reforms for children’s social care put forward – CCN response [February 2023]

    The press release issued by the County Council Network on 2 February 2023.

    Today the government has unveiled its new strategy for children’s social care – the long-awaited Children’s Social Care Implementation Strategy.

    The plan responds to recommendations made by the Independent Review of Children’s Social Care, which was led by Josh MacAlister.

    The plan is backed by £200m over the next two years, and has a particular focus on early help and prevention, and keeping families together wherever possible. The County Councils Network had led calls for this culture shift in children’s care.

    The government also announced that 12 local authorities would pilot this ‘new model’, as well as funding for a fresh foster carer recruitment drive. The plans for reform also include a new national framework for children’s social care and dashboard, which the government is now consulting on.

    Last year, CCN research with Newton found that if the system was left unchecked there could be close to 100,000 children in care by the end of 2025, with local authorities spending £2.1bn more that year compared to the start of the decade.

    Below CCN responds to today’s announcement.

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

    “The County Councils Network has long warned that the current children’s social care system is no longer working for children, families, and local authorities. Our research last year showed that, left unchecked, the number of children in care could rise to almost 100,000 young people by the end of 2025 while councils continue to overspend their budgets. Action is desperately needed.

    “Key to any reform to children’s social care is a greater focus on preventative services and more emphasis on keeping families together, where it is safe to do so. We are pleased that the government has acted on our calls and will look to pilot this new approach, alongside a renewed recruitment drive for desperately needed foster carers.

    “However, the funding made available to delivers these changes falls short of what both councils and Josh MacAlister argue is required, while the pilots are only taking place in a select few areas at a time when young people across the country cannot afford to wait. We understand that the public finances are tight, but we urge government to increase the funding allocated for these reforms in line with the recommended £2.6bn by the end of 2026/27 – investing in children and young people has a significant societal benefit, and will deliver long-term savings.”

  • PRESS RELEASE : North East Devolution Deal – CCN Response [December 2022]

    PRESS RELEASE : North East Devolution Deal – CCN Response [December 2022]

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

    Today the Secretary of State, Michael Gove announced a historic devolution deal for North East that will see a new elected mayor given fresh money and powers to level up region with a £1.4 billion investment fund. You can read more on the deal here.

    In response to the announcement, Simon Edwards, CCN Chief Executive said; 

    “CCN welcomes today’s announcement of a new North-East Mayoral Combined Authority, to come into force in 2024, and covering the unitary County Councils of Durham and Northumberland alongside the local authorities in City of Newcastle, North Tyneside, Gateshead, Sunderland and South Tyneside.

    “The Deal, which will see a directly elected mayor for the North-East, comes with a multi-million, multi-year investment fund of £1.4bn – £48m every year for 30 years – alongside new powers and funding for skills, transport, housing and regeneration.

    “CCN has long called for the Government to go faster and further to bring forward and deepen the benefits of devolution.  The scale of the economic challenges facing the nation – inflation, the cost-of-living crisis, and a looming recession – means that we must pull out all the stops to boost the economy, with an unrelenting focus on productivity and facilitating private sector growth. And to achieve those aims the solutions will need to be local, bespoke and led by local government.

    “Today’s announcement follows devolution deals agreed with Nottinghamshire, Derbyshire, North Yorkshire, Norfolk, Suffolk and Cornwall earlier this year – historic and landmark developments, not just for counties, but the sector as a whole.

    “And as we begin a New Year, CCN will be working closely with those other County and Unitary Authorities aiming to conclude their devolution deals, as well continuing to work with our members and Government to identify and support a second wave of such deals.

    “Ultimately, we want to see at least two-thirds of our member councils agree deals with Government by the end of the Parliament. This is an ambitious target, but one that will bring benefits to millions of residents and businesses, if we are – collectively – successful.”

  • PRESS RELEASE : New report shines the spotlight on councils innovative work in adult social care [December 2022]

    PRESS RELEASE : New report shines the spotlight on councils innovative work in adult social care [December 2022]

    The press release issued by the County Councils Network on 20 December 2022.

    Today the County Councils Network (CCN) has released its latest County Spotlight publication, which shines a light on best practice across the CCN membership on adult social care.

    The publication, CCN’s fifth and final Spotlight of the year, aims to showcase how the network’s member councils have stepped up in what has been a challenging year in adult social care with demand continuing to soar and inflation rising to a 40-year high – impacting on councils’ and care providers’ budgets.

    Download the publication here.

    The network’s County Spotlight publication sets out the challenges faced by county local authorities in delivering social care, but also shines a light on their innovative and transformative work carried out by its member councils, including successful campaigns to recruit and retain staff, using cutting-edge technology, and working with health partners to reduce demand.

    The report contains 16 case studies across four themes:

    • Helping to ensure that those in care live independent and fulfilling lives
    • Helping to attract and retain staff to create a vibrant social care workforce
    • Working in close collaboration with health partners to reduce pressure on the NHS
    • Using new technology to innovate services and improve care for those who need it

    The report comes as councils brace themselves for one of their toughest winters yet in social care – with the latest data contained in the report showing the number of requests for care reaching almost two million as demand continues to rise.

    Local authorities in England saw 1.97m requests from people for social care services in 2021-22 – which is an average of 5,402 requests a day for each council. This is a rise of 65,000 individuals compared with pre-pandemic levels in 2020. As we head into the winter period, councils say demand shows no sign of abating.

    The analysis by the County Councils Network (CCN) shows 55,000 (85%) of the rise in new requests came from people living in England’s county and rural areas. Councils in these areas say care provision is under significant pressure heading into the winter period where services are at their most stretched.

    The CCN says health and social care services face a perfect storm of post-pandemic demand for care services, including requests for short-term care packages and community care, care providers closing down, and wider pressure on the NHS.

    It comes as these councils await to find details of how they can spend £2.3bn of additional funding next year announced by Chancellor for care services in the Autumn Budget, with the government expected to place conditions on how councils spend some of the money to speed up hospital discharge and free up bed capacity to reduce the NHS backlog.

    Latest data shows that the number of beds occupied by people fit to be discharged from hospital is a quarter higher than last December – and many of these individuals will be waiting a social care package or bed in their community.

    With demand showing no sign of abating and with inflation still running high, council leaders say they are bracing themselves for a challenging winter. This is despite the government providing extra funding for local authorities to address social care pressures and improve hospital discharges.

    CCN say the government should ‘minimise’ the conditions placed on how councils spend this additional funding next year to allow councils to work most effectively with local NHS partners.

    The figures are released in a new report, published today by the CCN. The network’s County Spotlight publication sets out the challenges faced by county local authorities in delivering social care, but also shines a light on their innovative and transformative work carried out by its member councils, including successful campaigns to recruit and retain staff, using cutting-edge technology, and working with health partners to reduce demand.

    This good work has been done despite services remaining under strain and yearly rises in demand for care services, which has forced councils to tighten their eligibility for services. Of the 1.97m requests for care nationally last year, 1.087m requests did not result in a service being provided – some 55% of all cases. The proportion not receiving a service is higher in county and rural areas – 58% of all requests.

    However, nationally 662,615 people received short-term services – 25,910 more than in 2019-20. These include short-term care packages or reablement services. Those going into residential or nursing care has declined – dropping from 33,790 in 2019-20 to 31,440 in 2021-22.

    Cllr Martin Tett, Adult Social Care Spokesperson for the County Councils Network, said:

    “The Chancellor’s Autumn Statement provided vital funding for local authorities, but the scale of the challenge facing the health and social care system means that were still facing one of our toughest winters yet.

    “Figures show that demand for social care services continues to rise – with the number of requests almost totalling two million. Add in a further decline of social care beds this year, inflationary cost pressures, and longer hospital discharge times and you have a perfect storm of pressures on the system.

    “We will be doing all we can, working in close collaboration with our health partners, to ensure that pressure on local health systems are kept to a minimum and that people are not waiting too long for a care package. The delay to social care reforms, and the additional funding provided by the Chancellor, gives us a fighting chance, but there is no doubt significant challenges remain.

    “With new reporting requirements and grant conditions in relation to the new adult social care grant and the Better Care Fund expected, we would urge the government to minimise conditions to ensure this funding can be used flexibility to meet the most acute pressures across both social care and the health service.

    “Despite all these challenges however, county local authorities have a track record in delivery and innovation when it comes to adult social care. As today’s report shows, there are numerous examples of best practice across the country where county authorities are working hard to improve the lives of those in care and ease workforce and wider health pressures.”

  • PRESS RELEASE : Suffolk and Norfolk devolution deals to be signed today – County Councils Network Response [December 2022]

    PRESS RELEASE : Suffolk and Norfolk devolution deals to be signed today – County Councils Network Response [December 2022]

    The press release issued by the County Councils Network on 8 December 2022.

    Today the Levelling Up Secretary Michael Gove MP will today sign devolution deals for Suffolk and Norfolk, which include devolved powers in building, regeneration and skills.

    If approved locally, the deals will include bespoke investment pots for each council area as well as devolved powers over adult education, support to build new affordable homes on brownfield sites, and more capital funding for infrastructure projects.

    Both devolution deals also contain a directly-elected leader.

    It means that six out of the ten county authorities that begun negotiations with government this year on devolution deals have been agreed, pending local approval.

    Below, the County Councils Network responds:

    Cllr Martin Hill, County Councils Network Devolution Spokesperson, said:

    “Today’s signing of devolution deals in Suffolk and Norfolk, pending local agreement, is another important step in the county devolution agenda and takes the total number of deals this year to five.

    “These two agreements will be transformative for these two East of England counties – featuring substantial investment pots and devolving powers to local people, giving them more of a say on transport, skills, employment and the environment. The two local authorities have shown flexibility and pragmatism to adopt a directly-elected leader of the county council, which presents a fundamentally new and more suitable model for devolution in county areas. The County Councils Network will work with both local authorities to get these deals up and running.

    “The Levelling Up and Regeneration Bill becoming an Act is imperative to these devolution deals coming into existence. With the government compromising over planning reforms within the Bill, we urge county MPs to approve the legislation as soon as possible to enable these devolution deals and transfer powers from Whitehall into the hands of local people.

    “Now that six of the initial ten county deal areas have agreed proposals with government, we must complete the remaining deals as soon as possible, whilst government should announce a second wave of negotiations. Counties across the country have prepared innovative proposals to help boost productivity at a time when the country needs economic growth and we urge the government to now turbocharge this agenda and agree deals with at least two-thirds of our member councils by the end of this Parliament.”

  • PRESS RELEASE : Cornwall devolution deal – Response by the County Councils Network [December 2022]

    PRESS RELEASE : Cornwall devolution deal – Response by the County Councils Network [December 2022]

    The press release issued by the County Councils Network on 2 December 2022.

    Today the government has announced it has reached an agreement with Cornwall on a new devolution deal for the county.

    This deal, which builds on the devolution deal secured by the county in 2015, includes a directly-elected mayor, devolved adult education powers, and further levers in transport and housing.

    It follows on from devolution agreements in North Yorkshire, Nottinghamshire, Derbyshire, and Suffolk this year.

    Below, the County Councils Network responds to the announcement.

    Cllr Martin Hill, County Councils Network Devolution Spokesperson said:

    “Cornwall secured the first-ever county devolution deal in 2015 and today’s historic announcement bolsters the powers available to the county and builds on the excellent work carried out by the council over the last seven years. Devolved adult education powers will allow the council to effectively develop the skills of its local residents, tailoring them to local need, whilst further levers on housing and transport will make a real difference for people.

    “The deal, like Suffolk, could introduce the first directly elected individual of a county authority. This is a unique form of governance, bringing together both devolved powers and existing service delivery. The County Councils Network (CCN) looks forward to continuing to work with Cornwall as they consult on the proposal and put in place these new arrangements.

    “It has been a positive few weeks with this deal following on from an agreement in Suffolk, bringing the total number of county devolution deals agreed this year to five. This is an encouraging start but we need the government to go further and faster, and we’d like to see an acceleration of the county devolution agenda in 2023.”

  • PRESS RELEASE : County Devolution Deals – County Councils Network Response [November 2022]

    PRESS RELEASE : County Devolution Deals – County Councils Network Response [November 2022]

    The press release issued by the County Councils Network on 17 November 2022.

    Today the Chancellor has unveiled his Autumn Statement, which contained the announcement that the devolution deal in Suffolk is complete, with those in Cornwall and Norfolk close to completion.

    When completed, these devolution deals will be the first of their kind, with these county authorities being the first to adopt directly elected leadership models of upper-tier councils, without a combined authority.

    Separately, the Government has laid an amendment to Clause 16 of the Levelling Up and Regeneration Bill to ensure that the powers and functions that a new Combined County Authority (CCA) can only be those derived from upper-tier councils, or district councils where they choose to exercise powers jointly.

    Below, the CCN responds to today’s announcements.

    Cllr Martin Hill, Devolution Spokesperson of the County Councils Network, said:

    “The announcement today that the devolution deal is Suffolk is complete, with those in Cornwall and Norfolk close to completion is another milestone in the county devolution agenda. All three agreements could be genuinely transformative for their local areas, with the Suffolk devolution deal the first of its kind in putting forward a directly elected county leadership model.

    “In all of these areas, as well as the previously agreed deals with Nottinghamshire, Derbyshire, and North Yorkshire, county authorities have shown flexibility and a willingness to meet government halfway in considering to adopt a mayor or a directly-elected leader. We know how transformative county devolution can be, and we are urging government to go further and faster – turbocharging devolution so at least two-thirds of County Councils Network members have begun discussions, at least, by 2025.

    “Separately, the government has laid an amendment to Levelling Up & Regeneration Bill to ensure that the powers and functions that a new Combined County Authority (CCA) can only be those derived from upper-tier councils, or district councils where they choose to exercise powers jointly.

    “Earlier this year, ministers reassured all parts of the sector that the intention behind Clause 16 was never to unilaterally strip any councils of their powers, and today’s amendment, which we will support, confirms there is no intention of using this new legislation to force reallocation of functions between tiers of local government.

    “It is imperative, however, that the government now progress the Bill as soon as possible and ensure that no further changes are made to the legislation on CCAs, including constitute membership. The upper-tier CCA provides a far more suitable governance model for complex county areas, with the ability for county and unitary authorities to work closely with district councils in their area.”

  • PRESS RELEASE : County Councils Network Response to the 2022 Autumn Statement

    PRESS RELEASE : County Councils Network Response to the 2022 Autumn Statement

    The press release issued by the County Councils Network on 17 November 2022.

    Today the Chancellor has unveiled his Autumn Statement, which confirmed that the government is to delay forthcoming adult social care reforms and will provide an uplift in funding for care services.
    This package includes £1bn grant funding for social care in 2023/24, and a further £1.7bn in 2024/25, in addition to postponing the social care reforms until October 2025, which is a two year delay.

    The breakdown of social care funding, which also incorporates re-prioritising funding set aside for the reforms and extra council tax flexibility, is below:

    £600 million will be distributed in 2023-24 and £1 billion in 2024-25 through the Better Care Fund to get people out of hospital on time into care settings, freeing up NHS beds for those that need them Autumn Statement 2022 27
    £1.3 billion in 2023-24 and £1.9 billion in 2024-25 will be distributed to local authorities through the Social Care Grant for adult and children’s social care
    £400 million in 2023-24 and £680 million in 2024-25 will be distributed through a grant ringfenced for adult social care which will also help to support discharge
    CCN had led calls for social care reforms to be delayed because of intense pressures on services – and for funding earmarked for the changes to be re-prioritised to frontline care services.

    Below, the CCN responds to today’s announcements.

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

    “The County Councils Network has been clear that its member councils face unsustainable pressures: with inflation and demand adding £3.5bn to their costs, we have called on the government to postpone the forthcoming adult social care reforms so funding earmarked for those changes can be reinvested in into stabilising care services that are creaking at the seams, as well as further support for vital services.

    “Today’s confirmation that these reforms for adult social care will be delayed is a brave decision but completely the right one. We understand that many will be disappointed but postponing these reforms and reinvesting significant additional funding into frontline care services is strongly welcomed and will protect the most vulnerable in our society as well as buy councils vital time to stabilise the care system. This will go a long way to enable us to address existing pressures, commission more care packages, and ensure that the reforms are a success on day one of their introduction in 2025. The government must ensure that as much of this additional funding as possible is distributed directly to councils, who will work tirelessly with their health partners to speed up hospital discharge.

    We understand the financial climate the Chancellor has made today’s decisions in, and the outcome is better than envisioned a few weeks ago – with councils spared any further reductions over the next two years and seeing a rise in funding due to the additional resources for social care and extra flexibilities on council tax. We also strongly welcome the extension of the Household Support Fund for councils, which will allow our members to provide more support to families through the cost of living crisis.

    “However, while today’s announcements help meet inflationary and social care pressures, councils still face very difficult decisions over the next two years, with little resource available for local leaders to protect non-care services and deliver improvements to vital services. In addition, some county leaders may be reluctant to levy a 5% council tax increase during a cost-of-living crisis considering ratepayers in county areas currently pay the highest bills on average.

    “Looking ahead, a reduction in planned funding growth from 2025 could be extremely difficult for local services, which are already under immense pressure. Unless government addresses inflation next year, and the economy picks up before 2025, councils’ funding shortfall will grow year-on-year and become unsustainable.”

  • PRESS RELEASE : Only one in five of England’s largest councils are confident of setting a balanced budget next year [November 2022]

    PRESS RELEASE : Only one in five of England’s largest councils are confident of setting a balanced budget next year [November 2022]

    The press release issued by the County Councils Network on 11 November 2022.

    Only one in five of England’s largest councils are confident they can meet their legal obligation of setting a balanced budget next year, with a new survey revealing the extent of planned service reductions due to soaring inflationary pressures.
    Council leaders warn that ‘everything is on the table’ in reducing local services if the Chancellor does not spare councils from further cuts and provide more funding for local government in Thursday’s Autumn Statement as they grapple with £3.5bn of additional costs this year and next.

    The survey, carried out by the County Councils Network (CCN), finds that in order to make up the shortfall and stave off bankruptcy councils are likely to have to reduce economic growth projects, their spend on climate action, and reduce adult social care packages and support for young people. They are also likely to reduce other essential everyday services such as bus route subsidies, waste centres and streetlighting. This comes off the back of councils seeing a reduction in spend each year between 2010 and 2018.

    The survey, which received a 90% response rate, asked councils about the impact inflation and demand were having on their budgets over the next two years and reveals:

    • Only one in five (22%) of councils are confident of preventing financial insolvency next year if there is no additional support in the upcoming Autumn Statement. Councils are legally obliged to set a balanced budget, unlike the NHS, meaning they must use their reserves or cut services if spending exceeds their funding.
    • This is because councils are grappling with £3.5bn of additional costs this year and next due to inflation and rising demand; more than double the expected rise. Even if local authorities raised council tax by 3% and the Chancellor does not reduce their budgets further, those councils face a funding gap of £821m. In addition they face £700m of extra costs for their capital expenditure over this year and next, which is for one-off projects such as new buildings and roads.
    • At a time when economic growth and levelling-up is a key aim of the new government, councils say they will have little choice but to cut back on growth-related activity. Almost two-thirds (65%) of respondents said it was ‘likely or very likely’ that they will pause or cancel some economic growth and major road projects as well as routine road maintenance, whilst 81% said it was ‘likely or very likely’ they would have to pause or cancel projects such as building new leisure centres and bus or train station improvements. In addition, 78% said it was ‘likely or very likely’ they would have to scale back climate change action.
    • Services for the elderly, vulnerable people and children could be scaled back. In total, 72% of councils said it is ‘likely or very likely’ they would tighten eligibility for adult social care services, and 56% said they would likely have to reduce reablement and community-based adult social care services. In addition, 63% would scale back school transport services, with almost half – 44% – councils said it is ‘likely or very likely’ they would have to cut support packages to young people with special educational needs, with 45% reducing the number of children’s centres and youth services.
    • Highly valued everyday services would also see reductions, unless further funding is made available. In total, 75% of respondents said it was ‘likely or very likely’ they would cut some or all bus route subsidies which enables services to run on uncommercial routes. Almost two thirds – 63% – said it was ‘likely or very likely’ they would turn off an increased amount of streetlights or turn them off at certain periods in the night. Over half (56%) of councils also said they would likely reduce the number of libraries and (53%) household waste recycling centres or cut their opening hours

    The release of today’s questionnaire follows CCN publishing a document with the Society of County Treasurers and LG Futures last month, which projected councils’ funding pressures over the next 18 months due to inflation and demand. You can download it here.

    With inflation soaring this current year, significant shortfalls have opened up in every single county authority’s budget. To address this, CCN members are using their reserves this year but these can only be spent once and are viewed as a very short-term solution.

    The CCN says that many of its councils are facing a ‘cliff edge’ where even making substantive cuts to frontline and highly-valued services may not be enough to prevent them from issuing a Section 114 notice. For all of its member councils, difficult decisions over what services to reduce will have to be made with many likely to offer just the bare minimum in local services.

    The CCN has written to the Chancellor to outline the scale of the challenge facing its members, which calls on the Treasury to maintain existing 2021 Spending Review commitments for local government at the very minimum, and not propose any reductions. However, the councils say that the government needs to go further to support councils to cope with rising inflationary costs by increasing direct funding or reprioritising existing spending commitments.

    Cllr Sam Corcoran, Labour Vice-Chairman of the County Councils Network said:

    “The next two years are shaping up to be some of the most challenging for councils in recent memory. After a decade of austerity and with inflation soaring, if the Chancellor does not spare councils from further cuts and provide more funding for local authorities, everything is on the table when considering which vital services to cut.

    “This County Councils Network budget survey paints a clear picture of what will happen if we do not receive more funding to address inflationary and demand pressures. Councils will have little choice but to reduce vital everyday services and those for the most vulnerable in society, as well as economic growth projects and those aimed at tackling climate change. Reducing these all create a false economy that stores up problems for the future.

    “Even these decisions will not be enough, with less than one in five councils confident of setting a balanced budget next year without further support. This is why it is vital that the government recognise the value in supporting councils – with investment in local government allowing us to continue vital economic growth and climate action, supporting people to stay outside of hospital settings, and provide vital services people rely on every day.”