Title

HEALTH

Financial uncertainty forcing councils to award shorter contracts

The Government should offer subsidised loans to cash-strapped councils to encourage them to award longer contracts to organisations that support children with mental health difficulties, a think-tank has urged.

The Government should offer subsidised loans to cash-strapped councils to encourage them to award longer contracts to organisations that support children with mental health difficulties, a think-tank has urged.

A report published today by ResPublica said financial uncertainty had forced more local authorities to award shorter contracts to providers, including charities.

It argued that these shorter contract cycles made it ‘harder for an early intervention approach to be embedded' and called on the Government to offer bespoke, subsidised loans to councils that award longer contracts.

The report read: ‘In the face of deep concerns about the long-term viability of local government funding, government must in partnership with local government explore what new sources of revenue can be made available to local authorities to provide them with long-term financial security.'

Report author Duncan Sim said: ‘We are calling on the Government to prioritise measures which can prevent mental health difficulties presenting or escalating among children in the first place, such as an expansion of in-school counselling, as well as putting in place the long-term funding arrangements which give local authorities the confidence and freedom to invest in high-quality and accessible support services.'

The study urged the Government to introduce a duty on local authorities to ‘promote collaborative working between all relevant stakeholders in designing and delivering support services for young people'.

It also called for councils to ‘take steps to involve young people in the service design process' and recommended that the Government offered ‘devolution settlements similar to that seen in Greater Manchester to other regions'.

Shadow minister for youth affairs, Cat Smith, said: ‘The report raises serious concerns about the long-term viability of local government funding for children and youth services.

‘It is vital that this government does not lower its domestic policy ambitions in light of the complexities presented by Brexit.'

Amid estimates that three out of four adult mental health problems begin before the age of 18, the Government is expected to publish a green paper on children's mental health later this year.

HEALTH

Designing for cohesion

By Tom Fairey | 07 May 2026

Tom Fairey, Development Director at Alliance Leisure, discusses how community spaces can strengthen local connections.

HEALTH

The challenge for combined authorities

By Seb Lowe | 07 May 2026

Seb Lowe looks at the importance of building workforce capability for system leadership in combined authorities.

HEALTH

Breaking point: Tough choices for childrens' services

By Martin Ford | 06 May 2026

Governments are finally confronting the spiralling cost of children’s services. As pressures intensify and budgets buckle, the real question is no longer whe...

HEALTH

Warning over financial risks faced by children's care providers

By Martin Ford | 06 May 2026

Some of the largest children’s social care providers could be vulnerable to financial shocks, according to analysis published today.

Dan Peters

Popular articles by Dan Peters