Social care has been identified as one of the most significant areas of concern for Scotland’s local authorities, as the public spending watchdog calls for greater transparency on changes to eligibility criteria.

The Accounts Commission says growing backlogs, declining satisfaction with services, and no clear picture of either demand or unmet need point toward a sector in crisis.

The local government overview report points to growing challenges in social care recruitment and retention, with almost half (47%) of services reporting vacancies in 2021, compared to 36% the previous year.

The vacancy rate was estimated at 8.1% in 2021, up from 5.1% the year before.

In a report published today, the Accounts Commission has pleaded for councils to be more transparent with the public about the impact of the pandemic and changes to eligibility criteria which ration access to these critical services.

Tim McKay, Acting Chair of the Accounts Commission, said a New Deal for local government – which could enable more longer-term planning and new taxes – is long overdue:

“Putting this in place will give councils longer-term financial stability, supporting them to make decisions and make the fundamental changes that are urgently needed.

“Councils have gone beyond the point where making savings is enough. If the change needed doesn’t happen now, some services will continue to get worse or deeper cuts will be made. This will impact communities and individuals that are already at crisis point with the effects of inequality and persistently high poverty.

“Councils need to have open and honest conversations with their communities and staff about the future of council services."

Calls for transparency also came from Audit Scotland earlier this year in its annual review of NHS Scotland – urging the Scottish government to be clearer about its NHS recovery plans.

Though spending on adult social care has increased by more than 20% in real terms over the last decade, concerns persist around declining service standards and still not fully-open day centres.

A Scottish government audit into local authority day and respite services last year showed fewer than a third had returned to pre-pandemic operation levels, with more than one in ten remaining closed.

An analysis of the responses estimates that day services capacity was at just 61.8% compared to pre-COVID levels, as a result of workforce challenges and pandemic restrictions.

Today’s report says funding of local government has not kept pace with other parts of the Scottish budget ‘for many years’, which raises concerns that cuts to services and job losses will occur if radical reform is not soon taken.

Councils’ budgets, according to the report, are becoming increasingly ringfenced – around 23% of total local government revenue funding in 2021/22 – of which a large amount is to support social care service provision.

This, the Accounts Commission says, leaves little flexibility in local spending.

In April, the Accounts Commission and Audit Scotland laid out the ‘considerable’ financial challenges facing the bodies responsible for planning Scotland’s local health and care services - Integration Joint Boards (IJBs).

IJBs have a combined projected funding gap for 2022/23 of £124m, with many forced to agree unprecedented levels of cuts to balance the books this year.

Plans for national reform, such as the National Care Service, are also increasing uncertainty and potential future spend for local councils according to today’s report.

A lack of details on the operation and cost of the NCS, with the Bill to establish the service now being postponed until at least September, has made it difficult for councils to plan current and future services.

An updated funding outlook for 2024/25 and beyond, as part of the Scottish government’s medium-term financial strategy, is expected to be published in May 2023.

The report calls for councils to set out a clear plant for strengthening their use of data and to involve service users and local communities in the redesign of services.

COSLA president Shona Morrison says the report recognises the huge challenges faced by councils due to budget constraints, increased cost pressures and demand, and increases in directed and ringfenced budgets:

“As we have all seen, increasingly difficult choices are required about spending priorities and service provision given reducing budgets coupled with growing demographic and workforce pressures.”

“In addition, we are working with the Scottish government on a New Deal for local government, which will enable more long-term planning, more transparency in the budget setting process and a reduction in ringfenced funding for national priorities which constrains councils from making decisions about how to best use money to address the needs of their local communities.”

 

Read more: Joint call for major National Care Service rethink; Watchdogs: Scotland’s IJBs face £124m gap

 

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