Tag: County Councils Network

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.”

The press release issued by the County Councils Network on 19 October 2022.

This morning, the County Councils Network (CCN) has responded to reports in the Times that the government is considering delaying charging reforms to adult social care in England, including the introduction of a £86,000 cap on care and a more generous means-test.
Two weeks ago, CCN called for a 12 month delay to flagship social care reforms, which were due to be implemented in October 2023, warning services face a ‘perfect storm’ of financial and workforce pressures over the next 18 months.

Whilst county leaders welcome reports that the government is considering a delay, they warn that the funding committed next year must be retained by councils and reprioritised, not used as a saving as part of the government Medium-Term Fiscal Plan. This would help tackle the £3.7bn additional inflationary and demand costs already hitting services this year and next.

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

“The County Councils Network has led calls for the proposed reforms in adult social care to be delayed by a year and we welcome reports that the government is actively considering this.

“With local authorities facing severe workforce and inflation-fuelled financial pressures, they would be impossible to implement in the timescales without making services worse and leading to longer waits for a care package for people on day one of their introduction.

“But while the implementation of the reforms should be delayed, the funding committed next year must be retained by councils and reprioritised, not used as a saving as part of the government Medium-Term Fiscal Plan. This would help tackle the £3.7bn additional inflationary and demand costs which are impacting services this year and next. A delay to implementation will do little for care services if the government does not reprioritise earmarked funding for existing services while also delivering their promise to rebalance funding between health and care. Failure to do so will mean we will be back to square one in 12 months’ time.”

“We understand that today’s reports may come as a disappointment to those who have urged for reform to social care for years, but we cannot run the risk of them falling at the first hurdle. Councils need time to plan and prepare, expand our workforce, and ensure that the new financial burdens facing care services are properly costed.”

CCN’s calls for a delay to the reforms were featured across the national media including coverage on BBC News, the BBC Radio 4 Today Programme’s bulletins, in The Daily Mail, and in The Independent.

The press release issued by the County Councils Network on 19 October 2022.

A wholescale review of the planning reforms is needed if the government is to achieve its targets in housebuilding and economic growth, England’s largest councils say.

The County Councils Network (CCN) argues that strategic planning should be a major part of future proposals, likely to be put forward in a forthcoming Planning and Infrastructure Bill. This mechanism could be vital in delivering more homes, better infrastructure, and investment zones, county leaders argue.

The call is made in a CCN’s latest chapter of its Five Point Plan for County and Unitary Councils, which is released today.

Alongside advocacy on housing and infrastructure, the report calls for counties to be empowered through bespoke budgets in transport. The report also calls on government to move away from an overly city-focused approach on net zero, and provide county areas with an equitable share of climate change funding and policy focus.

Text of Report (in .pdf format)

CCN says that the current planning system is too fragmented, and for years infrastructure has not kept pace with development, leading to overcrowding on roads and public services in some parts of the country.

If the government wants to deliver on its twin aims of housebuilding and growth, then strategic planning is a ‘win-win’. It would ensure that county councils, which are responsible for transport, infrastructure, and the delivery of investment zones work more collaboratively with district councils in their areas, which are responsible for housing and planning.

By better joining up the system and empowering county councils by giving them a statutory role in the planning system could help local authorities ‘zoom out’ and pinpoint the best location for new homes across England’s counties, as well as ensuring that new major new development is backed by the right infrastructure – such as new roads, schools, and health centres.

Strategic planning could also help pave the way for investment zones by ensuring that they are well connected and supported by the right infrastructure, meaning they are more likely to be welcomed by local areas and delivered.

Currently, reforms to the planning system are currently included in the Levelling Up and Regeneration Bill, but CCN says they should be removed from that bill and reshaped proposals included in the recently announced Planning and Infrastructure Bill.

If that bill comes forward, CCN says it should include a power in the bill to introduce strategic planning in county areas, where desired.

Strategic planning has not been a formal part of the planning system since the late 2010s, and currently the only informal tool to encourage those councils to work together is the ‘Duty to Co-operate’ – which the previous government was looking to scrap, meaning there would be no mechanism to encourage local councils to work together.

Today’s report includes the following recommendations:

• The government should review strategic planning arrangements and introduce new powers to empower counties through strategic planning any forthcoming Planning and Infrastructure Bill, where desired. This would give parity to county areas and would see effective cross-boundary working to deliver strategic infrastructure and unlock growth.
• When the government puts forward reforms to the developer contributions system – which could include the previously proposed Infrastructure Levy – it should ensure that county councils should have a statutory duty in the contributions systems, working with district and borough to set rates and negotiate contributions, enabling more of this funding to be spent on vital infrastructure
• Any future capital funding for infrastructure projects should be amalgamated into a single pot, rather than local authorities bidding on individual pots.
• Government must move away from an overly city-focused approach to climate change, and ensure that county areas receive a fair share of funding and policy focus. As part of this, the £1.6bn for electric vehicle infrastructure must be targeted largely at improving the situation in county areas, where there is only one publicly-available charger for every 16 miles on average.

Cllr Roger Gough, Planning and Infrastructure Spokesperson for the County Councils Network said:

“We welcome the prospect of the government bringing forward new proposals to reform the planning system in a forthcoming Planning and Infrastructure Bill. Over a number of years there has been far too much focus on headline housebuilding numbers, rather than on planning as a whole, and on the infrastructure that is needed to make developments viable in the long-term.

“The new bill should contain a power to re-introduce strategic planning into the system, which would be a win-win for a government looking to build more homes and generate economic growth. By giving county councils a renewed role to work collaboratively with district councils in their area, we can come together to plan for houses in the right areas, backed by the necessary infrastructure, and ensure that investment zones get off the ground quickly.

“The County Councils Network has long argued for a collaborative model of strategic planning and form reforms to the developer contributions system. Taken together, these easily implementable reforms could yield significant results in creating better communities and unlocking development.”

The press release issued by the County Councils Network on 5 October 2022.

A new report released today as part of the County Councils Network’s County Spotlight series examines how county councils and unitary councils are setting out or delivering infrastructure and transport projects to boost their local economies.

The report is released just weeks after the new government set a target of 2.5% annual growth for the country, and examines recent best practice and projects from CCN’s members designed to boost productivity and infrastructure capacity in their areas.

The document contains 16 case studies split across the CCN membership, showcasing how those councils are the conduit for place-based growth in their areas in driving inward investment and unlocking substantial projects.

It focuses on the last twelve months, and the projects undertaken by county authorities as they transition from pandemic economic recovery to levelling-up and growth initiatives.

The case studies in the Spotlight are split across the following four themes:

Driving Economic Recovery: Large-scale projects to unlock growth and housing
Local Regeneration Breathing new life into road and rail infrastructure
Going Electric: Helping county residents switch to greener transport
Revamping Local Transport: Ensuring county residents can travel effectively and safely

The press release issued by the County Councils Network on 6 October 2022.

With a year to go until the introduction of flagship reforms in adult social care, England’s largest councils today call for a delay – warning that the system is under so much pressure care services could be worsened if they are introduced too soon.
From October 2023, reforms to protect people from catastrophic care costs and make more people eligible for state support with their care costs come into force. These include a more generous means-test and a cap on care costs of £86,000 – two policies which are supported by the County Councils Network (CCN).

But the CCN warns that the system is under serious pressure currently, with councils facing a ‘perfect storm’ of financial and workforce pressures that mean the government should push back their introduction to October 2024.

The call comes in a new report released today by the CCN. The document is Point Three of the network’s Five Point Plan for County and Unitary Councils, designed to influence the policies of the new government.

CCN says loading extra pressure on an already-teetering system to prepare for the introduction of the cap on care and means-test over the next 12 months could worsen services by impacting on the availability and quality of care packages.

They say that inflation is set to add £3.7bn of additional costs to existing services by 2023, whilst councils face a workforce crisis at present with thousands of vacancies unfilled. CCN warn councils will not be able to recruit an estimated extra 5,000 staff over the next 12 months to undertake an additional 197,000 care and financial assessments needed, which is a 45% increase on current levels. This level of extra demand will create longer waits for care packages, as at present there is a waiting list of almost 300,000.

With the Health Secretary Therese Coffey promising to ‘rebalance’ funding between health and social care, CCN is calling on the government to ‘stabilise’ the social care sector by focusing on existing pressures and providing more funding for services to get through the next year, before introducing reforms in 2024.

CCN’s calls for a delay to the reforms were featured across the national media this morning, including coverage on BBC News, the BBC Radio 4 Today Programme’s bulletins, in The Daily Mail, and in The Independent.

Today’s new publication outlines the financial and workforce challenges currently in social care – and the impacts of the reforms if they are introduced next October:

Adult social care services in England are set to face £3.7bn in additional costs over the next 18 months due to rising inflation and demand. This is more than double the rise in costs that were estimated when inflation was lower.

If government doesn’t provide any more funding to offset these costs, councils will have little choice but to reduce the amount of care packages available to people, and/or charge more for certain services. This could mean a worse level of service on day one of the reforms being introduced next October if the financial pressures councils face is not stabilised.

Local authorities are facing a staffing and capacity crisis currently, which is impacting on people who are currently eligible for care. There are currently almost 300,000 people waiting for a Care Act assessment, which determines what level of state support they are eligible for.

If the reforms go ahead, councils face a ‘mountain’ of Care Act and financial assessments each year to register people for the cap, means-test or ask the council to arrange their care. CCN analysis of research by Newton for the network estimates that an extra 197,000 assessments each year will be needed which is a 45% increase on current levels, rising to 64% in county and rural areas. If the reforms are introduced next October, these waiting times are likely to get longer.

An extra 5,000 staff will be needed to carry out the extra assessments – on top of a current social worker vacancy rate of 1,782. CCN says that its councils will find it almost impossible to recruit that level of staff by next October, making it extremely likely that people will face even longer waits for care than they do now.

The same research by Newton for CCN has estimated the costs of the reforms over the next decade could be a minimum of £10bn more than current government funding estimates. CCN says the delay would allow the government to fully reassess the costs of reforms and set out a funding package that fully funds them before the next Spending Review.

By delaying the introduction of the means-test and cap on care to October 2024, alongside new duties to arrange care for all self-funders to April 2025, this would provide local authorities adequate time to prepare, particularly to recruit the necessary workforce and undertake a fundamental review of their operations and digital infrastructure to manage increased assessments at a time of severe backlogs and workforce shortages.

At the same time, it would allow councils to focus on their Fair Cost of Care exercises with care providers and the stated policy of ‘moving towards’ paying higher rates for services over the next two years.

But CCN says the delay must be backed by additional funding from government. This is to address the immediate pressures within the system now, such as inflationary costs, improving the quality and availability of care packages and the recruitment and retention of care workers, alongside fully funding provider fee increases as a result of Fair Cost of Care exercises.

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

“The government’s reforms package will make the charging system for social care fairer over time and councils across the country support their premise.

“However, the care system is facing a perfect storm of financial and workforce pressures. These reforms could exacerbate this by extending the eligibility of state support for care costs, provided by local authorities. Councils face a mountain of extra assessments that will be impossible to deliver because of current capacity and financial issues in local government.

“Loading these reforms onto a system that is already in crisis could worsen care services by the time these reforms to ‘fix’ social care are introduced. Newly eligible people next October could face substantial waits for a care assessment whilst the quality of care for those already provided for could worsen as councils struggle with the extra demand amidst rising costs.

“Councils remain committed to supporting these reforms, but is imperative councils have the time to mitigate the pressures they will create, recruit a sufficient number of staff, and stabilise services in the short term. If not, these reforms could be unworkable at inception.”