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Social services departments are planning to spend more on services for older people and people with mental health problems this year, reflecting government priorities and the cost of implementing the National Service Frameworks for these client groups.

The recently published Social Services Inspectorate Monitoring Report Spring 2001 reveals a planned expenditure increase for 2001-2 of 3.9 per cent on older people's services and 6.3 per cent on mental health services. However, inspectors express fears about the smaller 1.8 per cent planned rise in spending on children's services.

"Reductions in planned spending on children's services may pose a risk to progress with the Quality Protects initiative," the report warns.

Inspectors also criticise the low level of expenditure planned across councils for training. "The generally low level of training resources, extremely low in some councils, is a matter for concern in a period of major change; especially where coupled with high levels of staff absence and problems with recruitment and retention," they conclude.

The report finds a "positive picture of strengthening partnerships" between health and social services, but notes that only 95 of the 518 initiatives to use Health Act 1999 flexibilities reported to be in preparation have been formerly notified to the DoH's regional offices.

Around half of all local authorities describe planning relationships with NHS bodies based on consultation, regular discussion, sharing information, and mutual understanding and support. However, there are significant regional variations and in many areas the routine sharing of operational information "is not sufficiently effective to support the kind of partnership needed to deliver NHS Plan priorities".

The report also highlights the lack of attention paid to ethnic minority issues and notes how councils' Best Value performance plans make little reference to improving access to services for these communities.

Meanwhile the Audit Commission's Best Value annual statement published last week reveals that of the first 500 inspections completed in English and Welsh local authorities, almost two thirds of services were rated as only fair or poor. Just 37 per cent were awarded two or three stars for good or excellent services.

- SSI social care regions Monitoring Report Spring 2001 from www.doh.gov.uk and Changing Gear: Best Value Annual Statement 2001 from www.audit-commission.gov.uk