• Home
  • About
  • Subscribe
  • Conference
  • Events Calendar
  • Webcast151
  • MOTB
  • Log In
  • Register

Room 151

  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews

IFS calls for rethink of rates retention to tackle adult social care funding

0
  • by Colin Marrs
  • in 151 News · Funding
  • — 22 Mar, 2018
adult social care, elderly, OAPs

Photo (cropped): sabinevanerp/Pixabay, CC0

Reversing course on business rates retention would provide the best solution for England’s adult social care funding crisis, according to the Institute for Fiscal Studies.

The abolition of central grant funding to councils means that social care spending could swallow up half of revenue from local taxes by 2035 — up from 30% today, according to a report by the thinktank.

It said that even if council revenues increase by double the rate of projected inflation each year, rising costs for adult social care services will leave councils with hard choices about service priorities.

David Phillips, associate director at IFS and an author of the report, said there is no easy way to square this circle without backtracking on reforms to local government finance and reintroducing general grant funding.

He said: “At the very least, the government will have to provide an increasingly large top-up via the Improved Better Care Fund or similar ring-fenced grants.

“Alternatively, it could decide to keep and, over time, increase the general grant funding for councils that it currently plans to abolish in 2020.

“More radically, it could devolve revenues from other more buoyant taxes, such as income tax, to councils to help fund local services.”

Polly Simpson, research economist at IFS and a co-author of the report, said: “The government has to decide whether it thinks adult social care is ultimately a local responsibility, where councils can offer different levels of service, or a national responsibility with common standards across England.

“If it opts for the latter, it cannot expect a consistent service to be funded by councils’ revenues, which are increasingly linked to local capacity to generate council tax and business rates revenues.”

Falling levels of redistribution between councils mean that delivering consistent access to quality social care across England could become increasingly difficult, the report said.

This could also lead to a reduction on spending on other services, including children’s services, public health, housing and refuse collection, the report found.

Earlier this week, health and social care secretary Jeremy Hunt outlined seven principles that will guide the government’s forthcoming social care green paper.

Hunt said one of seven principles running through the forthcoming green paper would be “the question of how we ensure a sustainable financial system for care, delivering a stable and vibrant market which delivers cost-effective, quality services for all, including the debate we need to have with the public on the challenges of sourcing additional social care funding.”

Changes could be tailored to different age groups, while technologyl solutions and new models for care will be looked at, Hunt said.

“A more vibrant and diverse market offer will give people greater choice and more effective support,” he said.

“But it is also vital because if we do nothing to support people’s needs more creatively or efficiently, the cost of simply delivering these services today will double in a decade.”

Responding to the Hunt’s speech, Margaret Willcox, president of the Association of Directors of Adult Social Services, said: “Whilst the moves announced today are key steps in that direction, only adequately resourcing care teams across the country, effective communication and support for both provider and recipients will ensure that they provide the person-centred care that we need.

“With a social care funding shortfall of over £2bn by 2020, we must work towards a long-term, sustainable funding solution to make sure that social care goes from being something we don’t like to think about needing to something that we actively plan for.”

Get the Room151 Newsletter

Share

You may also like...

  • Chris Buss: Is fair funding mission impossible? Chris Buss: Is fair funding mission impossible? 28 Feb, 2018
  • News round-up: Infrastructure rate, Scottish LGPS, devolution spending, auditor concerns News round-up: Infrastructure rate, Scottish LGPS, devolution spending, auditor concerns 21 Dec, 2016
  • BCC rating, Social bond push, Bucks software investment, Pompey pays up, Shared service IT BCC rating, Social bond push, Bucks software investment, Pompey pays up, Shared service IT 30 Aug, 2013
  • The trouble with  big numbers The trouble with big numbers 13 Aug, 2014

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Register to become a Room151 user

  • Latest tweets

    Room151 7 hours ago

    Could 2021 be less eventful for LGPS, please?: Barry McKay looks at McCloud, the 95k exit cap, employer risk and investments to see what to expect for LGPS in the coming year. On one hand, 2020 was in[...] dlvr.it/RtslFd pic.twitter.com/H4debuPmGG

    Room151 7 hours ago

    Fixed income investing can help target both financial and sustainability targets: Sponsored article: Adam Whiteley offers a guide to the ESG benefits of investing in fixed income. Investing responsibly in fixed income can be crucial for local government… dlvr.it/Rtsl9h pic.twitter.com/khJL1xNfGh

    Room151 1 day ago

    Going beyond the standard metrics for climate change: Sponsored article: With climate change an investment imperative and an imminent reporting requirement, Ritesh Bamania argues UK pension schemes should look beyond today’s standard metrics. With… dlvr.it/RtnpLS pic.twitter.com/6ABaFHyS9I

    Room151 2 days ago

    LGPS webinar: Governance the key to TCFD implementation: LGPS funds have been warned that governance is it at the here of Whitehall plans to impose a new climate reporting regime on pension funds. In January the Department for[...] dlvr.it/RtjwNq pic.twitter.com/YMiMdmRyzU

    Room151 2 days ago

    LGPS webinar: Central bank management of bond purchasing could affect all asset classes: When the government debt caused by the pandemic is eventually tackled there may be a huge impact on assets of all classes, according to a leading investment expert… dlvr.it/RtjwJx pic.twitter.com/7v8K5vMYHo

    Room151 2 days ago

    #LGPS readers...what to do about #bonds? room151.co.uk/blogs/lgps-web… @BrunelPP 's new CIO, David Vickers tackles a problematic area #centralbanks #assetallocation #fixedincome pic.twitter.com/yUJr0azbKv

    Room151 2 days ago

    LGPS Challenges: Balancing Realpolitik and responsible investment: Elizabeth M. Carey warns of the perils of an ESG echo chamber as countries outside the West continue to invest in fossil fuels. Anyone working with the LGPS probably feels[...] dlvr.it/RtjMpq pic.twitter.com/MykIYxuYri

    Room151 6 days ago

    How can local government ‘build back better’?: Beverley Gower-Jones looks at the options for driving small business entrepreneurship in clean technologies. Innovation is essential for local authorities to save money and reduce emissions, it is the… dlvr.it/RtT3nS pic.twitter.com/bSMB6OG70t

    Room151 6 days ago

    Helen Randall: Spelthorne report places spotlight on ‘controls’: Fresh criticism of Spelthorne Council raises the question of what “good” controls look like when negotiating a property deal. Spelthorne Council’s continuing debacle over property… dlvr.it/RtSPhy pic.twitter.com/9uCOJgBcH6

    Room151 6 days ago

    Step-out strategies: Hitting the sweet spot between liquidity and ultra-short duration: Sponsored article: Jemma Clee describes how an ultra-short duration strategy can help local authorities enhance returns. Despite the expectation of a low, and… dlvr.it/RtSPZb pic.twitter.com/pdXPpv5lcN

    Room151 1 week ago

    What role will climate change have on the pricing of government bonds?: Sponsored article: Kerry Duffain finds that “vulnerability and resilience to climate change” have a significant impact on the cost of government borrowing. Ardea Investment… dlvr.it/RtNKv7 pic.twitter.com/wDjT31x4Yt

    Room151 1 week ago

    ESGenius: Slashing emissions will fuel green growth for decades: Sponsored article: Velislava Dimitrova argues that a big enough investment could mean transition to a low, or no, carbon economy can become a reality. The world needs to slash carbon[...] dlvr.it/RtKZJp pic.twitter.com/cd8S3ijERl

    Room151 1 week ago

    Prudential code: “Not perfect, but its heart is in the right place”: The new Prudential Code offers revised rules for borrowing. Nikki Bishop is sceptical it will work while Gary Fielding offers his support. Nikki Bishop I have been asked to give[...] dlvr.it/RtKZFh pic.twitter.com/OriN28lXcb

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
    • Uncategorized
  • Archives

    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story Q&A: Kathleen Hughes of Goldman Sachs Asset Management on rates and Liquid Reserves Plus
  • Next story UK council debt rises to £94.08bn

© Copyright 2021 Room 151. Typegrid Theme by WPBandit.