Michael Burton 14 July 2020

OBR issues warning on soaring care and council costs

OBR issues warning on soaring care and council costs image

Soaring costs for adult social care along with indebted local authorities struggling to balance their budgets post-virus are among the key risks to the Government's spending plans warns the Office for Budget Responsibility (OBR) today.

Its latest analysis of the public finances the OBR predicts a deficit of between 13%-21% this year with total public sector debt hitting 100% before the deficit returns to between 2.2%-6.8% by 2024.

However, its Fiscal Sustainability report warns that among the risks to its spending projections is long-delayed but unspecified investment in the care sector including higher pay.

It adds: ‘Adult social care represents a source of fiscal risk, with demographic and other cost pressures raising demands for spending and governments announcing periodic top-ups to strained budgets. The funding system itself is a source of fiscal uncertainty as governments have recognised that reform is necessary but have been unwilling to decide how.’

The OBR also warns that ‘local authorities’ finances could come under greater pressure than we have assumed, leaving them unable to meet statutory obligations without additional funding from central government.’

Visit The MJ for more on this story.

SIGN UP
For your free daily news bulletin
Highways jobs

Senior Social Worker - LD & Autism

Essex County Council
£30906 - £42254 per annum
Senior Social Worker / Senior Occupational Therapist/ Senior Practitioner With us, you can achieve more - for yourself as well as those you work to s England, Essex, Harlow
Recuriter: Essex County Council

Social Worker - Assessment and Intervention

Essex County Council
£30906 - £42254 per annum + + Free On-Site Parking & Benefits Package
Social Worker - Assessment and InterventionPermanentFull Time£30,906 to £42,254 per annumLocation
Recuriter: Essex County Council

Social Worker - Children with Disabilities

Essex County Council
Negotiable
Social Worker - Children with DisabilitiesPermanent, Full Time£30,906 to £42,254 per annumLocation
Recuriter: Essex County Council

Duty Manager (South Woodham Ferrers Leisure Centre)

Chelmsford City Council
Grade 5 - Starting at £22,944 per annum, rising to £25,284
South Woodham Ferrers Leisure Centre is one of Chelmsford City Council's excellent leisure facilities which offers a variety of sporting activities... Chelmsford, Essex
Recuriter: Chelmsford City Council

Assistant Director - Inclusion

Suffolk County Council
£75,745 - £93,245 pa
We are seeking a highly skilled Assistant Director Ipswich, Suffolk
Recuriter: Suffolk County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue