Section 114 fear for almost 1 in 5 Council leaders and chief executives after cashless Autumn Statement

ALMOST 1 in 5 Council leaders and chief executives in England think it is very or fairly likely that their chief finance officer will need to issue a Section 114 notice this year or next due to a lack of funding to keep key services running, a survey by the Local Government Association reveals.

The LGA estimates that Councils in England face a £4 billion funding gap over the next 2 years just to keep services standing still but last month's Autumn Statement failed to provide the additional funding needed to protect services from further cuts.

This is despite Councils of all political colours and types warning that growing demand and cost pressures are threatening their financial sustainability.

In 2024/25, Councils will be able to increase general Council tax by 3% without the need for a referendum. Those with social care responsibilities will again be able to increase the adult social care precept by up to a further 2% again.

This means that Councils continue to face the tough choice about whether to increase Council tax bills to bring in desperately needed funding to provide services when they are acutely aware of the significant burden that could place on some households.

The LGA survey; of Council leaders and chief executives; also reveals:-

• ½ are not confident they will have enough funding to fulfil their legal duties next year (2024/25). This includes the delivery of statutory services.
   

• Nearly ⅔ of Council leaders and chief executives said there were no announcements in the Autumn Statement that they thought would help them deal with their Council's financial position.

The LGA said the circumstances that have led to a Section 114 notice so far have been unique to each local area and the pressures they face.

However, all those that have had to curb spending in this way have faced the same underlying pressures - Councils' core spending power falling by 27% in real terms from 2010/11 to 2023/24, the impact of the pandemic, rising demand for services, in particular statutory services like social care and homelessness support, and the extra costs to provide them.

The LGA said the Government urgently needs to use the forthcoming provisional Local Government Finance Settlement to provide Councils with sufficient resources to set balanced budgets next year without having to make drastic cuts to services.

Cllr Shaun Davies, LGA Chair, said:- "The lack of funding for local services in the Autumn Statement has left Councils facing a growing financial crisis. No Council is immune to the risk of running into financial difficulty. As our worrying survey shows, many now face the prospect of being unable to meet their legal duty to set a balanced budget and having Section 114 reports issued. Local Government is the fabric of our country, with Councils providing hundreds of services that our communities rely on every single day. For many people, these services are a lifeline. If Councils cannot thrive then our communities cannot thrive. If social care services that Councils provide cannot cope with demand, then pressure on the NHS will grow further. If Council housing teams can't succeed, then all of our hopes for new homes will not succeed. While Councils have worked hard to reduce costs, find efficiencies and transform services, the easy savings have long since gone. The Government urgently needs to act to address the acute financial challenges faced by Councils."

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Government's £40 million urgent and emergency care fund allocated to ease local winter pressures

THE Government has announced the allocation of a £40 million fund for local authorities to strengthen urgent and emergency care resilience and performance this winter.

Local authorities within integrated care systems (ICSs) identified by NHS England as experiencing the greatest challenges with urgent and emergency care were invited to put forward proposals for access to the fund and today the Government has set out details of how much each local authority will receive.

This is in addition to £200 million announced in September 2023 to boost resilience in the NHS and help patients get the care they need as quickly as possible this winter. It can be used to buy more services aimed at keeping people out of Hospital, as well as more packages of home care, which allow people to leave Hospital faster and build back their independence.

Minister of State for Care, Helen Whately, said:- "We know winter will be challenging, which is why we started preparing earlier than ever before so people get the care they need. We're supporting local Councils with targeted funding to use where it's needed most. With a focus on speeding up Hospital discharge and increasing social care provision, this money will help the NHS care for people through the winter."

Home care packages can include enabling a carer to come to an individual's home a couple of times a day and help them with tasks including getting dressed. The funding can also be used to increase the amount of specialist dementia support available in the community, services which also help to keep people out of Hospital.

Other local authority proposals included plans for services such as patient transport provision to take people home from Hospital, the provision of technology to monitor people at home, and additional capacity to undertake more assessments of an individual's care needs.

This fund will also allow local authorities to boost social care provision, strengthen admissions avoidance services and speed up discharge rates this winter.

Compared to this time in October 2022, there has been a 9% fall in the number of patients staying in Hospital after they are ready to be discharged, freeing up space on wards and helping flow through the system.

The Regional allocations are now being paid out.