Funding gap forces councils to find new ways to save

Meanwhile, income from fees such as those from developers and planners has all but disappeared, and council tax revenues are falling. This year’s average council tax rise was just 3%, the lowest increase since its introduction 15 years ago.

Last year councils spent £20.7bn on social care, with £15.27bn spent on adults and £5.42bn on children. This figure has remained relatively stable for the last couple of years, although there are variations within social care categories. It gives some indication of how much could be saved by using Dr Foster’s Population Care Manager, which provides a mechanism to increase efficiency and can help alleviate future financial pressures.

Even a 1% saving on children’s services could see more than £54m freed for investment in other frontline services, while a similar saving on the money spent on older people’s services nationwide would net nearly £88m. These savings do not need to be to the detriment of other services. The key is to work smarter, which is where Population Care Manager provides greatest benefit.

Population Care Manager provides a platform for dialogue between local authorities and their communities, analysing the needs of the population and providing an essential tool in enabling councils and their partners to work together.

Attempting to avert a potential crisis in local services or council tax, local government minister John Healey recently announced important changes to financial regulations. These allow local authorities to postpone any budgetary impact of their failed investments in Icelandic banks until 2010-11.

Despite short-term measures like this, The Times has predicted a loss of 40,000 council jobs this year alone. Even if the economy were to recover overnight, councils would still face a spending squeeze for years to come.

The government is using public spending to prop up parts of the economy and local authorities are playing a key role in this approach. However, if the current recession has proved anything, it is that increased spending as a short-term fix can result in longer-term financial problems. In fact, councils may really begin to feel the pinch once the recession is over.

Joint working between councils can shave millions from local authority costs without damaging services. Population Care Manager allows information, intelligence and assumptions to be shared across authorities, helping to break down barriers and achieve dramatic results. It also enables key information to be shared between organisations, giving them access to valuable forecasts on key population data, as well as expectations for future demand.

As the population grows older, many areas face financial challenges in delivering health and social care. In fact, this is one of the areas expected to be hardest hit as local authorities reduce spending. Population Care Manager enables effective analysis of the inter-relationship between health and social care, helping to provide coherent, cost-saving solutions that drive service improvement.

This web-based tool has a wealth of information on a wide range of issues. In addition to offering a comprehensive picture of communities, it provides a mechanism for developing new approaches to service delivery – crucial in these uncertain times.

For more information, please visit www.drfoster.co.uk/localgovernment

or contact localgovernment@drfoster.co.uk