Last month’s Budget coincided with the LGA’s National Children and Adult Services Conference, held this year in Bournemouth.
More than 1,100 delegates, speakers, and people with lived experience met to share good practice and discuss the big issues in adult social care and children’s services. It was a juxtaposition that highlighted the absence of any reference in the Budget to one of the biggest challenges facing local government – adult social care.
People who rely on care and support, as well as those who provide it, will be understandably worried about the sustainability of services given that no new funding was announced.
Provision for special educational needs and disabilities (SEND) is another huge cost pressure, so it is positive that, in the Budget, the Government pledged to absorb SEND costs from 2028/29.
As first was going to press, however, we await clarity on how this will be funded – and what will be done about existing high-needs deficits, which are pushing many councils to the brink.
Finally, temporary accommodation completes the triumvirate of major cost pressures facing councils – so we have welcomed the Chancellor’s announcement of a Treasury-led review of value for money across government spending, including homelessness services.
However, with the temporary accommodation subsidy gap projected to cost local government more than £3 billion up to 2029/30, it is illogical that the local housing allowance rates councils receive from government are a decade and a half old. The rate must be brought into line with the current reality.
When it comes to overall council finances, the Government has responded to key LGA calls – most notably for greater financial stability and a simpler funding system. We now have a three-year funding settlement for councils in England from 2026/27, and the Government’s response to its Fair Funding 2.0 consultation.
But while overall funding has started to go up in recent years, the Budget did not provide the increased funding that councils need to sustain vital local services. We continue to urge government to take steps to protect our sector.