Council leaders have issued an urgent plea to incoming Prime Minister Andy Burnham to address a deepening social care crisis, warning that a £7 billion funding shortfall over the next three years will lengthen waiting lists and force cuts to essential local services. The Local Government Association (LGA) analysis reveals that councils face soaring costs due to rising demand for legally mandated services, including homeless support and school transport for special needs pupils, as well as new recycling rules imposed by the Labour government.
Funding Black Hole Threatens Services
The LGA projects that the funding gap will reach £7 billion by 2028/29—more than councils currently spend on roads, transport, and housing combined. This shortfall risks longer waits for adult social care assessments, increased homelessness, and cuts to neighbourhood services such as road maintenance, libraries, parks, and waste collections. LGA Chair Louise Gittins stated: “The cost and demand pressures facing councils are unrelenting. In just three years, councils will need around 25 per cent more money simply to stand still. Without action, the services people rely on every day, from social care to safe streets, will be eroded.”
Cross-Party Council Tax Review Sought
The LGA is calling on Burnham, expected to be confirmed as Prime Minister on July 20, to launch a cross-party review of council tax to find a sustainable funding model for local authorities. Gittins added: “Whoever takes up the keys to Number 10 will have a lot of competing priorities. But fully funded, sustainable public services will need to be at the heart of any plans to improve lives and inspire hope in the future.”
Social Care Access Worsens
Last year, 900,000 people nationwide had requests for social care turned down, and 40,000 older people annually are forced to sell their homes to cover residential care costs. The Department for Health has frozen the asset thresholds for means-tested care, with the lower capital limit remaining at £14,250 and the higher limit at £23,250. Freezing these limits in real terms means more older people will have to pay for their own care, often by selling their homes if they are in a care home permanently and their property is not occupied by a partner, relative over 60, or child.
Upcoming LGA Conference
The LGA’s Annual Conference takes place next week in Bournemouth, with speakers including Housing Secretary Steve Reed, Shadow Housing Secretary James Cleverly, Reform UK Education lead Suella Braverman, and Green Party Leader Zack Polanski. The conference will focus on the pressing need for local government funding reform.
