What is the residential care sector doing to bridge the current funding gap?
With many local authorities facing budgetary cuts, and an unclear future regarding the political landscape, especially with a looming Brexit, authorities are left with no option but to revert to more commercial thinking and initiatives when it comes to the funding of residential care.
Capitalising on business growth
In a conference in July held by the Chartered Institute of Public Finance, a proposal was made to increase the devolution deals. This would entail 100% of business rates being transferred to local authorities, opening up possibilities for them to capture the growth in value and yield. This could possibly be one way of bridging the funding gap. In order for this to succeed however, local authorities need to actively take part in developing strategies to attract local business in their areas, which would, in turn, generate revenue for them to use on care.
Some other ideas to maximise revenue would be enhancing debt recovery and bringing empty homes back into use. The more medium-term solutions are to review and optimise assets for income generation purposes, by working with public sector organisations and commercialising local authorities’ services.
If councils had to take a long-term view of regeneration across housing, healthcare, transport and education this would, in turn, attract people with relevant skills, boosting the local economy and leading to long term financial sustainability, which would then possibly help to bridge the residential care funding gap.
The care cost cap
For the time being, proposals have been made to cap personal care costs over a person’s lifetime as determined by the local council with exceptions for people who have care needs when turning 18, who will receive care for free, whilst those who require care before retirement will have a higher cap on their costs.
It’s clear to see that local authorities are still under immense pressure when it comes to care costs, despite those initiatives mentioned, and that both revenue generation and cost saving exercises should not be taken lightly.
Are you convinced that the strategies you adopt are the right ones? If you’d like to explore the possibilities further contact me for a free consultation.
Paul Strachan M. 07793 447961 T. 01307 460667 E. email@example.com