Monday 25 October 2010

The dilemma of council spending and social care

by Simon Bottery, Director of Fundraising, Policy and Communications


Barnet Council's budget dropped through my letterbox today (I live there, so this was not some random chance event). It has a nice pictogram, displayed above, showing how they spent their money in 2009-2010 (this image is from a screengrab so it's a bit hard to read, but you can see it in more detail at http://ideas.barnet.gov.uk/sites/barnet/files/infographic/main.html.)

It shows clearly the dilemma facing councils on social care. Though the council spent nearly £850m in 2009-10, over half of this money was either on schools or housing benefit, neither of which it has any control over because it is dictated by central govenrment. This leaves Barnet with five main areas of spending it can control: housing (£23m), environment and roads (£44m), adult social services - which is mainly social care (£112m), children's social services (£80m) and corporate services (£76m). Smaller amounts are also spent on libraries (£7m), corporate governance (£7.5m), chief executive's services (£2.8m) and commercial services (£11m).

So social care is the council's single biggest area of spending under its own control. If it simply took seven percent ofthis expenditure every year, in line with the overall cut in its funding, it would have to reduce spending on day services by £3.6m over four years; domicilary care by £7.5m; care homes by £14m and direct payments by £1.9m. In theory, it will have a share of the additional £2bn a year in funding for social care with which to offset its cuts, but it's difficult to see how this would compensate in full.

The council is running an exercise inviting residents to suggest budget savings (it's not got a huge or very constructive response yet, but it is probably early days). I haven't submitted ideas yet, but am going to take a long look at that £76m on corporate services and, in particular, the £55.3m spent on central expenses. I'm sure there's a good reason for it, but I'll want to know it's all more important than providing a carer to help a disabled older person get dressed or go to bed.

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