A cash shortfall in the NHS is having a major knock-on effect on council care services, the Local Government Association has claimed. The latest NHS finance forecasts show more than one in three hospitals and Primary Care Trusts are not expecting to balance their books this year. Councils are being forced to take drastic measures to counteract the crisis including withdrawing services from people with low-level care needs, increasing waiting times for social care assessments and services and using budget reserves. ‘Health and social care are two sides of the same coin and a financial crisis on one side will have an impact on the other,' said LGA chairman, Lord Bruce-Lockhart. ‘We are seeing some worrying examples of where budget problems for the health service are causing some NHS trusts to withdraw from joint projects, leaving local authorities to pick up the tab.' The LGA revealed London councils alone have forecast £135m net deficits among the capital's PCTs, with £35m of the costs being passed to council social care departments. Essex CC, one of almost 50 councils which signed a joint letter to the Government, warning of a ‘total crisis in care for the elderly' because of the funding predicament and calling for more money for care services (The MJ, 14 December 2006), has committed £1.3m in care home renewal within its budget. ‘Care for the elderly remains a priority in the coming year,' said council leader, Lord Hanningfield. ‘I am determined to ensure that central government recognises the scale of the funding crisis.'