Local authority leaders have called for ‘clarity’ over funding for mental health services as demand outstrips the level of funds available.

A new report by the National Audit Office (NAO) has warned that ‘millions of people’ with mental health needs are still not accessing services.

The amount of local authority spend on public mental health has increased in recent years from £42.7m in 2016-17 to £86.6m in 2021-22, according to the NAO, although this only accounts for around 2% of their total spend on public health.

However, between 2018-19 and 2022-23, the local authority public health grant had a real-terms reduction of 6%.

In a July 2022 survey of directors of adult social services cited by the auditors, 78% of respondents reported an increase in the number of people approaching their councils with mental ill health, with this increased demand requiring an estimated additional £92m of funding in total for 2022-23.

Commenting on the report, Cllr David Fothergill, chairman of the Local Government Association’s (LGA) Community Wellbeing Board said: ‘As this report demonstrates, public mental health services run by local councils lack the sufficient funding they need to cope with increasing demand.

‘Investment in preventative mental health services can not only transform the lives of the people who rely upon them but also relieve pressure on our overburdened health and care systems.

‘Announcements on councils’ public health grant which fund these and other vital local services have continued to be delayed, with councils and their communities currently being left in the dark about their future.

‘The Government needs to give councils the clarity they need so they can increase investment to protect the health of our local communities over the coming months and years.’