LGA warns of £2.2 billion black hole

Pressure on councils’ budgets for adult and children’s social services has contributed to a £2.2billion “black hole” in their finances, local government leaders have warned today.

An extra £663 million is needed for older people and adult services, £599 million for children’s services and £669 million for antisocial behaviour, housing and pensions, the Local Government Association said in its annual statement on council tax.

The LGA argues that increasing demands from central government have not been matched by extra resources.

The growing number of older people, rising expectations of service users and increasing number of looked-after children have all added to costs, the statement says.