Councils ‘must face up to Brexit’ fall-out
Local authorities need to get to grips with the potential effects of Brexit on their finances, according to the chairwoman of a special commission. Last week, the Brexit Advisory Commission on Public Services, formed by the Chartered Institute of Public Finance and Accountancy (CIPFA), this week released five key demands to ensure Brexit creates opportunities for public finance. Speaking to Room151.co.uk, the commission’s chairwoman, Julia Goldsworth, said: “It is almost a mirror image of the national government attitude. Brexit feels like something is a long way off in the distance and the challenges of austerity and cuts might seem more pressing. However, there are going to be big impacts on local government.”
CIPFA calls on social care funding change
The government may have to change current borrowing rules to help councils fund social care, according to CIPFA. Currently, it is illegal for councils to borrow money to provide services. CIPFA chief executive Rob Whiteman said: “Whilst many councils will fund the services now and receive income in future years through using their balances and reserves, the government may need to legislate to allow for councils, at times, to borrow to fund services that will be paid for at a later date. Councils will also need to know whether the administration and financing costs will be recovered as a charge to social care users or borne by council tax payers.”
Councils fail to implement deferred social care payments
A number of councils have failed to implement rules introduced in 2015 allowing residents of care homes to defer payments for social care, according to former pensions minister Steve Webb. The Liberal Democrat submitted 140 freedom of information requests, and discovered that 10 authorities have not entered a single agreement since the scheme was introduced in 2015. Webb told The Independent newspaper: “…there is already a lottery as to whether people facing significant costs can exercise their legal right to defer their payments under the existing system”.
Bottle deposit scheme threat to councils
Councils could lose out from any efforts to promote plastic bottle waste deposit schemes, according to an expert. Paul Vanston, chief executive of packaging research body INCPEN, said that such a scheme would reduce the amount of glass received by local authorities. According to LetsRecycle website, he said: “Think about it yourself, if you have got a 10p deposit on a bottle you have bought, are you as a person who bought it going to put it into your recycling bin at home or instead take it back to claim your deposit?”
