Heather Jameson 08 March 2017

Budget 2017: £2bn social care cash boost for councils

Chancellor Philip Hammond unveiled his final Spring Budget, offering a £2bn cash boost for social care in a bid to rescue councils from the care crisis.

The £2bn will be spread across the next three years, with the first £1bn in 2017-18 as a ‘bridge’ to the Better Care Fund, the Chancellor claimed.

Recognising the scale of the adult social care problem facing local government and the health sector, Mr Hammond said the government was considering the options for the future of social are, and pledged a green paper later in the year.

Further funding was also promised for Sustainability and Transformation Plans (STPs), which will be announced in the chancellor’s Autumn Budget, with £325m capital investment for the first STPs now.

The chancellor announced plans to review business rate revaluation in the future – including tackling taxes for digital businesses – but said he would not scrap business rates as they would be fully funding local government in the future.

He handed an extra £300m to local authorities to provide discretionary relief to local businesses, with details for follow, as well as a cap for firms coming out of business rate relief and a tax discount for pubs.

The Budget included some moves towards further devolution to local government, with more powers handed down to London and a Midlands Engine Strategy due to be announced tomorrow.

On transport, the Chancellor announced £90m for the North, £23m for the Midlands from a £220m for ‘pinch-points’ in the road network.

He also pledged a further £690m ‘competition’ for local authorities to tackle urban congestion, with further details to be announced by the transport secretary.

Mr Hammond confirmed a £320m funding package to build 110 new free schools. Figures from the Office of Budget Responsibility revealed good news for the Chancellor, with predicted growth upgraded for this year from 1.4% to 2%. Despite a dip to 1.6% in 2018, it is then expected to rise to 1.7%, then 1.9%, with growth for 2021 is expected to return to 2%.

Public sector net borrowing is also expected to bring good news, with 2016/17 £16.4bn lower at £51.7bn, the ONS has revealed. But despite the good news, the chancellor refused to give a cash giveaway for the budget due to the high levels national debt.

The chancellor pledged an ‘economy that works for everyone’. He said: ‘I report today on an economy that has continued to confound the commentators with robust growth. A labour market delivering record employment. And a deficit down by over two-thirds.

‘As we start our negotiations to exit the European Union, this Budget takes forward our plan to prepare Britain for a brighter future. It provides a strong and stable platform for those negotiations.’

Photo: Foreign and Commonwealth Office

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Registered Building Inspector (Band 2/Grade 7)

Health and Safety Executive
£60,760 - £65,776
The Building Safety Regulator (BSR) is transforming building safety regulation across England. United Kingdom / various Locations
Recuriter: Health and Safety Executive

Revenues and Recovery Team Leader

Ashfield District Council
£37,938 - £40,476 per annum (pay award pending)
We have an exciting opportunity for a Revenues and Recovery Team Leader Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Housing Options Officer

Ashfield District Council
£31,067 - £33,366 per annum (pay award pending)
Do you want to make a real difference to the lives of residents in housing need? Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Building Services Operative

Ashfield District Council
£25,584 - £27,269 per annum (pay award pending)
The Facilities team are looking to recruit an enthusiastic individual Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Street Cleansing Technician (CDC)

City Of Doncaster Council
Grade 5, £24,397 per annum (pay award pending)
Do you enjoy working outside, as part of a team that make a direct difference to the communities of Doncaster? Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner