COUNCIL TAX

Authorities under pressure

Fears about councils’ financial sustainability remain in the wake of the Spending Review, including concerns about the costs of reform to adult social care. Ann McGauran reports.

Councils were dished up more cash than they had been led to expect in the Spending Review. They were handed £4.8bn of new grant funding over the next three years, to the initial relief of a sector that had been staring into a fiscal chasm.

Separately, £3.6bn of the previously announced £5.4bn of investment in adult social care will be routed through local authorities. The Institute for Fiscal Studies (IFS) has said the headline 3% increase for councils would be ‘more like 1.8% per year' once reforms to social care are stripped out, with the ‘front-loaded' nature of funding – about £1.6bn next year – increasing pressure in later years.

Ann McGauran

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