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Departments fear services cuts as chancellor’s sums become clear

Posted: 05 August 2004 | Subscribe Online



Social services in England may have to turn to the NHS for extra resources or face service cuts, experts have warned, writes Lauren Revans and Derren Hayes.

As part of last month’s spending review, the chancellor announced that funding for social services for each of the next three years would rise by an average of 2.7 per cent in real terms (news, page 6, 15 July).

However, this breaks down into an increase of 5.7 per cent for 2005/6, in line with 2002 government commitments, followed by two years averaging at 1.3 per cent per year after inflation.

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In addition, around one sixth of the budget for social services comes directly from the Department of Health, and could be subject to ring-fencing. A spokesperson for the department said decisions on this would be made in November.

These factors, combined with a 2.5 per cent efficiency drive across local government, threats to cap council tax rises, and reductions in Supporting People budgets will almost certainly see social services departments unable to meet all their commitments.

Peter Robinson, senior economist at the Institute for Public Policy Research think-tank, said the figures amounted to a “significant slow down in spending” on social care, and would see spending on social services fall as a proportion of gross domestic product.

“Even during the 1990s, when spending overall on the public sector was being squeezed, social services spending continued to rise as a proportion of GDP,” Robinson said.
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He said it remained to be seen whether primary care trusts and care trusts would use their extra resources to help bail out local authorities rather than risk failing to shift resources away from the acute sector towards primary care and early intervention.

Anne Williams, co-chair of the Association of Directors of Social Services resources committee, said the “modest” increases in years two and three would intensify the “very real pressures” in the system. But she said social services could work with PCTs to deliver services more efficiently by joint commissioning and pooling budgets.”



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