Social care and public health led local government third-party spend in 2024, new figures have revealed.
Data released by Oxygen Finance showed local authority third-party spend rose by 10% to £91.8bn in 2024.
Vulnerable citizens and public health (VC&PH) had the biggest absolute increase of £3.8bn, up by 11%, accounting for 41% of spend at £37.7bn.
Adult social care continued to be the highest spending subcategory (£26.4bn) within VC&PH and was driven by higher spend on elderly residential care (£8.0bn), health & social care (general) (£4.6bn) and residential (including SEND, disabilities, mental health) (£4.5bn).
Vicki Sloane, chief executive of Oxygen Finance, said: ‘The continued rise in third-party spending by local authorities highlights the need for transparency and collaboration in how this investment is deployed. If the overall increase in spending continues at its current pace, local government spend will exceed £100bn in 2025.’
Lee Peart is editor of Hemming Group’s Healthcare Management magazine.
