Social care precept to net councils £382m

30 Jun 16

Councils will raise £382m from a council tax precept to fund adult social care, but spending will only rise by £308m, according to data published by the government today.

The figures published by the Department for Communities and Local Government show that the first year of the adult social care precept, announced in last year’s Spending Review, would raise the equivalent on 2.7% of adult social care expenditure.

However, funding for services was only set to rise by 2.2% compared to 2015-16.

The Local Authority Revenue Expenditure and Financing: 2016-17 Budget report for England found that the total revenue expenditure by local authorities in England is budgeted at £94.1bn in 2016-17, a 1.4% cut from the £95.4bn budgeted in 2015-16.

As well as social care, other service areas with a planned increase in spending were children’s and families’ social care services (up £136m), police services (£143m higher) and public health services (a £175m increase).

Local government secretary Greg Clark said the increase in social care spending would help deliver high-quality services at a time when the government was also cutting the public sector deficit.

He added: “Councils will have almost £200bn to spend on services over the lifetime of this parliament and I’m pleased the vast majority are also making use of new flexibilities to prioritise the services people really care about.”

Government has planned for up to £2bn will come from the new adult social care precept to 2020, as well as providing an additional £1.5bn through the Better Care Fund, which the Local Government Association has said should be delivered quickly.

Today’s report also found that councils are planning to raise over £80m to invest in service reforms. This is part of a three-year flexibility, which began in April and allows councils to keep any money generated from selling surplus assets – like property or shares – for service improvements.

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