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    The Local Government Association has predicted that councils in England could be facing a £5.8bn shortfall over the next two years.

    The LGA say the main causes for these funding shortfalls are said to come from the cost of elderly care taking up a growing share of council budgets, and that there is now a “once in a generation” chance to steer the social care system “away from financial ruin”, reports the BBC. Money Notes 2

    Ministers have said that the claims made by the LGA lacks credibility and councils have had to play their part in reducing the deficit.

    BBC local government correspondent Mike Sergeant said councils had “predicted multi-billion pound shortfalls before” and had so far managed to “balance their budgets”.

    LGA chair Sir Merrick Cockell has said that council’s finances were “on a knife edge”.

    Sir Merrick also said the next year would be a “make or break moment for adult social care, local services and the NHS”.

    He also criticised what he called a “vicious cycle of overspending on a broken system”, calling instead for the NHS, councils and the government to provide a better, joined-up service for older people. Failure to get this right would be catastrophic.”

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    June 30, 2014 by Laura Matthews Categories: Funding

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