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

SIGN UP
For your free daily news bulletin
Highways jobs

Home Care Worker - Naidcare

Essex County Council
Up to £11.40 per hour
Essex County Council (ECC) are delighted to be supporting Naidcare to recruit domiciliary care workers for their home care service based in Rochford.T England, Essex, Rochford
Recuriter: Essex County Council

Home Care Assistant - Bluebird Care - Southend and Rochford

Essex County Council
£12.25 - £13.25 per hour
Essex County Council (ECC) are delighted to be supporting Bluebird Care to recruit Home Care Assistants for their home care service across Southend an England, Essex, Southend-On-Sea
Recuriter: Essex County Council

Home Care Assistant - Bluebird Care - Mid Essex

Essex County Council
£12.50 - £13.50 per hour
Essex County Council (ECC) are delighted to be supporting Bluebird Care to recruit Home Care Assistants for their home care service across Mid Essex.T England, Essex, Chelmsford
Recuriter: Essex County Council

Home Care Assistant - Bluebird Care - Brentwood

Essex County Council
£12.50 - £13.50 per hour
Essex County Council (ECC) are delighted to be supporting Bluebird Care to recruit Home Care Assistants for their home care service across West Essex. England, Essex, Brentwood
Recuriter: Essex County Council

Security Architect

Essex County Council
£63000 - £74271 per annum
Security ArchitectPermanent, Full TimeUp to £74,271 per annumLocation
Recuriter: Essex County Council

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.