Social care services are likely to be badly affected by cuts across most English councils next year, a Local Government Association (LGA) has found.
Almost four in five authorities (79%) said services for disabled or older adults were very or fairly likely to be negatively affected by savings in 2025-26, while 63% said the same about provision for children, young people and families.
The LGA also found that over four and ten councils responsible for social care were expecting to seek a bailout from the government over the next two years to stave off having to issue a notice of 'bankruptcy'. One in nine such councils were granted this support earlier this year.
The survey was carried out from 23 September to 11 October 2024, with 103 out of the 153 councils with social care responsibility responding.
Much-anticipated Budget
Its results come a week before the government's Budget, on 30 October, which will set public spending limits for 2025-26 as well as announcing further cuts to 2024-25 budgets.The government has signalled that the Budget will be tough because of the need to both tackle what it alleges is a £22bn "black hole" in the public finances left by its Conservative predecessor and enable necessary improvements to services, such as the NHS.
While much of this is likely to be covered by tax rises, chancellor Rachel Reeves has also asked cabinet ministers to put forward proposals for cuts to services under their responsibility, which likely includes local government.
'Funding gaps set to affect most vulnerable'
“The unprecedented emergency support given to councils this year reveals the extraordinary funding emergency facing local government," said LGA chair Louise Gittins. "As our survey shows, many more councils are being pushed into a precarious financial position.“This is not just about numbers on a spreadsheet. Budget cuts needed to plug growing funding gaps will affect the most vulnerable members of society and the services our communities rely on every day.
“The Autumn Budget must provide councils with the financial stability they need to protect the services our communities rely on every day.”
Bailouts to stave off bankruptcy
Earlier this year, the government announced that 17 councils with social care responsibility would receive so-called "exceptional financial support" (EFS), enabling them to use borrowing or the sale of their assets to fund day-to-day expenditure, something that is usually prohibited.The LGA found that 44% of councils responsible for social care were very or fairly likely to apply for EFS in 2025-26 or 2026-27 to avoid having to issue a section 114 notice.
Such a notice means that the council has judged that it is unable to meet its legal responsibility to balance its budget. It is typically the prelude to substantial cuts and council tax rises.
Five councils with social care responsibility - Birmingham, Croydon, Nottingham, Slough and Thurrock - have issued a section 114 notice since 2021.
