The Government's response to the anticipated Casey Review before the next election will likely result in more resources for elderly care, a material local government financial pressure. In recent years, some councils have received help from fair funding redistribution. We also know that 90% of the accumulated Dedicated Schools Grant (DSG) deficits will be written off by the Department for Education to reduce insolvency risks presently covered by the statutory override.
The Government has also written off some excessive and ill-conceived debt associated with a handful of failed councils in order to assist local government reorganisation in some areas, and before the summer recess we were expecting targeted revenue and capital support for around 10 authorities in receipt of exceptional finance support (EFS) caused by cost and demand pressures to help to reshape their position through transformation. We hope to see this proposal survive the change in government and shortly come forward.
