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Thursday, 28 June 2012
Budget shortfall - Local Government
The Chartered Institute of Public Finance and Accountancy (CIPFA) has responded to a report which suggests a 29% shortfall between revenue and spending pressures by 2020.
The report, published by the Local Government Association, points to the rising cost of adult social care due to an ageing population and the rising costs of other statutory responsibilities of councils such as social services, waste collection and concessionary travel.
The report shows that unless urgent reform is introduced, a £16.5bn funding shortfall will exist between the amount of money available to councils to provide services and the predicted cost of maintaining them at current levels.
Alison Scott, CIPFA’s Assistant Director for Local Government, commented,
“It will be no surprise to local government finance officers that council finances are under pressure, there is a particularly urgent need to tackle the rising costs of care.
“We have yet to see the Government’s full response to the Dilnot Commission’s proposals on the funding system for care and support in England. And, it is important to emphasise that its proposals do not provide a solution to the long term funding issues but merely address the contributions individuals should make towards their owns costs of care.”
CIPFA’s Annual Conference from 3-5 July will address a number of the concerns raised in this report, including a Chatham House event for public sector Chief Finance Officers to review the current and forecast position of the UK’s public finances, government spending and the nature and scale of the challenges and risks which lie ahead.