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The government has been urged to increase funding for social services in next week's Budget in a joint open letter from local authorities and the NHS Confederation, writes Clare Jerrom.

The investment in social services has not been parallel with investment in the NHS in recent years, the letter says. It urges the government to correct the imbalance to ensure "that local government as well as the NHS has real sustained increases in funding".

The letter from Jeremy Beecham, Local Government Association chairperson, and Dianne Jeffrey, chairperson of the NHS Confederation, warns that if this funding is not provided then "problems will intensify in the NHS and the modernisation agenda will be slowed".

It also warns of the immense pressures in social services for both children and older people. The "recent instability" in the residential and care home sectors must be removed if a whole system approach to providing health services is to be maintained.

Spending in social services is currently running over a billion above the standard spending assessment and significantly above budget, and this spending has long term implications given the commitments to support people in their own homes and communities, it adds.

"We know that investment in local authority social services can have immediate effect and maximum benefit. Recent experience of the new grant for community services is that there has been a positive effect on reducing delayed discharges from the acute sector," the letter says.

The letter, which is addressed to health secretary Alan Milburn, but copied to the prime minister, the Chancellor, the chief secretary to the Treasury, Andrew Smith and secretary of state for local government, transport and the regions, Stephen Byers, urges funding to be increased and sustained through investment in the Budget and a sustained approach in the current spending review.