Title

HEALTH

Financial uncertainty forcing councils to award shorter contracts

The Government should offer subsidised loans to cash-strapped councils to encourage them to award longer contracts to organisations that support children with mental health difficulties, a think-tank has urged.

The Government should offer subsidised loans to cash-strapped councils to encourage them to award longer contracts to organisations that support children with mental health difficulties, a think-tank has urged.

A report published today by ResPublica said financial uncertainty had forced more local authorities to award shorter contracts to providers, including charities.

It argued that these shorter contract cycles made it ‘harder for an early intervention approach to be embedded' and called on the Government to offer bespoke, subsidised loans to councils that award longer contracts.

The report read: ‘In the face of deep concerns about the long-term viability of local government funding, government must in partnership with local government explore what new sources of revenue can be made available to local authorities to provide them with long-term financial security.'

Report author Duncan Sim said: ‘We are calling on the Government to prioritise measures which can prevent mental health difficulties presenting or escalating among children in the first place, such as an expansion of in-school counselling, as well as putting in place the long-term funding arrangements which give local authorities the confidence and freedom to invest in high-quality and accessible support services.'

The study urged the Government to introduce a duty on local authorities to ‘promote collaborative working between all relevant stakeholders in designing and delivering support services for young people'.

It also called for councils to ‘take steps to involve young people in the service design process' and recommended that the Government offered ‘devolution settlements similar to that seen in Greater Manchester to other regions'.

Shadow minister for youth affairs, Cat Smith, said: ‘The report raises serious concerns about the long-term viability of local government funding for children and youth services.

‘It is vital that this government does not lower its domestic policy ambitions in light of the complexities presented by Brexit.'

Amid estimates that three out of four adult mental health problems begin before the age of 18, the Government is expected to publish a green paper on children's mental health later this year.

HEALTH

Democracy delivers the mandate; development delivers the impact

By Matthew Hotten | 09 April 2026

Matthew Hotten looks ahead to local elections day and outlines how the next steps taken will shape the quality of governance in our places for years to come.

HEALTH

Local talent, local control, local savings

By Caroline Wheller | 09 April 2026

Caroline Wheller looks at the benefits of joint venture models in delivering services

HEALTH

A steady erosion of support: thirteen years on from the localisation of Council Tax Support

By Rebecca McDonald | 08 April 2026

Broader budget pressures are making it increasingly difficult for councils to maintain support through Council Tax Reduction schemes, and places affected by ...

HEALTH

From market town to modern destination: Barnsley's bold rebirth

By Matt O'Neill | 08 April 2026

Barnsley's transformation model offers a quiet reminder that resilience in town centres comes from more than new buildings,says Matt O'Neill.

Dan Peters

Popular articles by Dan Peters