Central government funding for care of the elderly will be cut in half over the next two years, the Local Government Association (LGA) has warned.
The LGA said councils, which had already experienced unprecedented funding cuts since 2010, would see their central government funding further cut by £2.7bn between 2018/19 and 2019/20 – a 54% reduction.
Cllr Nick Forbes, LGA Senior Vice Chair, said: “Rising demand and years of growing funding pressures have stretched councils to the limit. Councils knew they would struggle to cope with the pace of Government funding cuts over the next few years. It was hoped that local government as a whole keeping all of its business rates income by 2020 would ease that pressure.
“With those plans now in doubt, councils are faced with the double jeopardy not only the money they have to pay for local services running out fast but also huge uncertainty about future funding after 2020.”
Cllr Forbes said councils called on the Government to introduce a fairer system to fund vital services, including care for the elderly.
The LGA said the Local Government Finance Settlement should be used to provide replacement funding to all councils in 2018/19 and 2019/20.