Committee says Local Councils Close to Collapse

  • A public accounts committee have warned that dozens of local councils are close to collapse and need help after significant cuts.

    Some councils may have to be bailed out unless new plans are made to support their vital services, which ministers have failed to do.

    There are dozens of local authorities that are close to financial collapse and ministers have so far failed to come up with adequate contingency plans to prop up vital services.

    The public accounts committee have released a report warning that urgent support is needed says in a report that the coalition government does not fully understand the impact of significant cuts to council budgets.

    If it continues in this manner, the public accounts committee say councils will have to be bailed out as funding is being cut as services continue to rise.

    The National Audit Office have also recently found that nearly one in eight councils (12%), including Birmingham city and West Somerset district, are at risk of being unable to balance their budgets and nearly one in 10 are under "high financial stress".

    The central government grant to councils is being cut by £7.6bn between 2011 and 2015, a 14% decrease in real terms. Local government is likely to face another round of deep cuts in the next spending review, as funding for services are no longer ringfenced.

    Margaret Hodge, the committee's chair, said:

    Departments have provided some information on possible impacts, but it was superficial and incomplete.

    Nor has enough work been carried out across government departments to determine how funding reductions in one area of spending might affect services in another: for example, how cuts in local authority adult social care might lead to bed-blocking in hospitals.

    There needs to be frank and open dialogue between central and local government and the public on just what services councils will be expected to provide in a prolonged period of declining funding.

     

    The committee's report said the Department for communities and local government's procedures for managing problems with town hall finances or service provision were designed for dealing with one-off failures rather than a wider collapse.

    Sir Merrick Cockell, chairman of the Local Government Association, said that social care is likely to suffer:

    In some areas local authorities will have to cease providing some services entirely and scale back spending on areas such as social care which have so far been largely protected from cuts.

     


Related articles

  • Read More

    New supported housing facility to be built in Middlesbrough

    The site has been developed by Riverside to provide supported housing, comprising of 20 self-contained flats for social housing and training facilities to support people into employment, reports the...

  • Read More

    Supported living accommodation plans submitted in Leamington Spa

    HB Villages Developments Ltd have made the application which will include a two-storey residential building of 16 self-contained one bedroom supported living apartments, reports The Leamington...

  • Read More

    Young people in Sheffield given help to live independently

    The course is run by Guinness Care and Support at the Sheffield Foyer, which is a 60-room scheme that provides accommodation for young people aged between 16-25 such as care leavers and young...

  • Read More

    A new supported living scheme has opened in Paignton

    Bridgman House has been opened to provide care for up to eight young people in transition from the family home, education or residential care, reports The Torquay Herald.The property is in the town...

  • Read More

    Homelessness charity opens furniture shop in Nailsworth

    Emmaus Gloucestershire has opened a shop in Nailsworth that sells upcycled furniture, allowing customers to have the opportunity to bring old furniture in to be restored or adapted to particular...

  • Read More

    Restaurant in London helps to tackle youth homelessness

    Alone in London, a charity that provides support, training and mediation for young homeless people and young people at risk of homelessness has joined forces with The Breakfast Club to create a...

  • Read More

    Housing group’s supported housing contract extended

    Progress Housing Group provide supported housing and support services for women and children fleeing domestic violence and young people facing homelessness, reports 24dash.Progress Housing manage a...

  • Read More

    Empty homes fund launched by Scottish Government

    The fund is to be used to revamp empty homes and convert derelict commercial spaces into affordable housing, reports Inside Housing. Under the scheme housing associations will be able to apply for...

  • Read More

    People with vulnerabilities to receive support from new care scheme

    People with vulnerabilities and people who are socially isolated in Reading are set to benefit from a new scheme run by GPs and Age UK, reports Get Reading. North West Reading NHS Clinical...

  • Read More

    New initiative sees young people create food parcels for the homeless

    The group of eight young people from Charles England House, a specialist young people’s housing scheme run by Merlin, put together 50 food parcels, reports 24dash.This new project is part of a new...

What are the Future Funding Arrangements for Supported and Sheltered Housing? "Information on Exempt Accommodation & DWP Review was very informative, but also commend your approach in delivering workshops/conferences in a proactive way, and use of email and your website as a public resource" P.C. - The Hyde Group  

 

Briefing Signup

 
Quick Contact

Quick contact

Close

Contact us

T 0333 332 1991 (Local rate)

E info@supportsolutions.co.uk