As everyone gears up for the Christmas break, town halls up and down the country are waiting on news of how much funding they will receive from Government.
As I write this, what we know is that after many years of local councils arguing the case, this Government – unlike its predecessor – is providing councils with a multi-year settlement. This allows Councils to take a longer-term view of finances and plan for the next three-year period, instead of the hand-to-mouth approach of one-year settlements favoured by the previous Government.
The Government is also in the process of simplifying more than thirty different funding streams as part of its Fairer Funding Review. And while there is never any guarantee, I am hopeful that the Government’s move to allocate more resources to areas where need is greatest will also mean a fairer share for Reading.
You only have to look at the number of councils requiring Exceptional Financial Support from Government – up to 29 this year, from 18 last year – to know that the challenge has far from gone away for local government.
In Reading, those challenges mirror those faced by other local authorities. This year, for example, the percentage of the Council’s overall budget spent on adults and children’s social care in Reading is around 70%. We also know that percentage will rise over the coming year because, at this stage, the Council expects to have to allocate additional funding to cover the rising demands and costs of caring for vulnerable children and young people in Reading. It may surprise many, but residential placements for children in care regularly cost councils like Reading £10,000 a week. It underlines the enormous challenges every council faces in securing appropriate, cost-effective placements for children and young people with highly complex needs.
Reading Council also expects to have to find additional funding to care for vulnerable adults in the town, as the number of vulnerable residents approaching the Council for various forms of support increases, alongside the costs of providing care packages. Many Councils, including Reading, are directing more funding to help prevent homelessness, mainly in the form of providing temporary accommodation for local people who cannot afford high local rental costs.
And then there is the soaring cost of providing places for children and young people with special educational needs and disabilities. Alongside Council Leaders everywhere I’m sure, I very much welcome last week’s Government announcement that it is investing £3 billion to create around 50,000 new school places for children with SEND children, which also includes support for mainstream schools to ensure they can meet the additional needs of these pupils.
All of these pressures are for statutory services, that is services which the Council has to provide by law. That’s not to say we would ever shy away from providing them – caring for vulnerable residents is after all the fundamental role of a local council. In practical terms however, the more money the Council has to direct into statutory services, the less money there is available for other services.
The truth is there was never going to be a quick fix when it comes to stabilising local government finances. What feels different this time, however, is that we have a Government that appears to be listening to councils about what those pressures are, which is to be welcomed.
Councillor Liz Terry
