Next spring's Spending Review needs to decide the model for financing social care while the Treasury should pilot more devolved funding to local authorities, a report from a respected Whitehall-watcher has said.

The Institute for Government (IfG) said next year's review was likely to be one of the hardest ever due to Brexit, a sluggish economy and mounting pressure on public finances, adding: ‘Even though this will not be described as an austerity review (language the Government is no longer using), given these pressures and the savings that have already been made since 2010, it will be more difficult than the previous two.'