Councils warn of further potential arts cuts

The rising cost of social care services will force local authorities to abandon non-statutory functions such as the arts and youth clubs within five years, councils have warned.

A report by the County Councils Network (CCN) said that that unless the government acts in the Budget and Spending Review, local authorities in England face a funding shortfall of £54bn over the next five years.

It concluded that this could mean them providing "little more" than care services by the end of the decade.

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Despite significant cuts in recent years, local government remains the largest single biggest funder of culture, spending around £1bn a year.

But the CCN report says a funding "black hole" of £54bn over the next five years is being fuelled by rising demand and costs in just three service areas – adult social care, children’s services, and home to school transport.

Together, they account for 83% of the total increase in costs councils are projected to be spending on services by 2030.

The report says rises in council tax of 3% could reduce this cumulative deficit to £38bn, but local authorities would still be left to find billions each year in "undeliverable" service reductions.

It added that with many councils already providing close to statutory minimum levels in services, unless something is done it will threaten their ability to remain solvent unless their statutory obligations change.

'Unpalatable trade-off'

Barry Lewis, Finance Spokesperson and Vice-Chair of the County Councils Network, said councils will have to divert even more funding to prop up social care services unless more funding from central government is forthcoming.

“With the funding gap fuelled by rising costs in adult social care, children’s services and SEND transport, councils will have to divert even more funding to prop up these services, leaving councils providing little more than care services by the end of this parliament," he said.

"But with many local authorities already close to the legal minimum on the services they deliver, our survey shows still won’t be enough for some.

"Ministers would therefore have no choice but to radically rethink the statutory responsibilities placed upon councils to prevent six in 10 declaring bankruptcy by 2028.

“However, this unpalatable trade-off can be avoided by providing a substantive injection of resources to help shore up services this parliament, then embarking on deep and fundamental reform to address demand and market failures driving costs in children’s services, special educational needs and adult social care.

"This needs to happen urgently with a plan to be actioned within the next 18 months, otherwise we risk undermining the wide-ranging purpose of local government and derailing the government’s mission-led approach to public-service reform and greater devolution to councils.”