Integration authorities in charge of community health and social care in Scotland face a £87m deficit as the impact of covid-19 takes effect.

Scottish government figures show the vast majority are predicting budget deficits, as the pandemic has worsened an already difficult financial situation.

Planned extra support from councils and the NHS does not cover all of the difference between income and expenditure, meaning it is not clear how a £23m funding gap will be filled.

It comes as COSLA, the representative body for councils, which jointly fund health and social care partnerships, warns the pandemic has placed ‘real strain’ on its own budgets.

COSLA Resources Spokesperson, Councillor Gail Macgregor, said: “Sustaining this lifeline support is placing extreme pressure on already strained budgets and without fair funding for local government this year, the consequences for the most vulnerable in our communities would be unacceptable.”

The figures, released just before Christmas, include all 30 integration joint boards, which govern health and social care partnerships, as well as Highland, which follows a lead agency model.

They reveal 25 of the 31 integration authorities are predicting a deficit by the end of the financial year in March 2021. Another five plan to underspend and just one says it will break even.

This adds up to an £87m deficit against a total budget of nearly £9bn.

After covid-19 costs, missing savings targets are the single biggest factor behind the projected overspend, accounting for more than £50m.

To fill the gap, NHS boards and local authorities will have to make additional contributions and new savings plans will be implemented, while nine authorities are planning to use their financial reserves.

However, plans in place still leave a £23m funding gap that is currently unaccounted for.

Another concern is the diminishing reserves held by integration authorities, which are increasingly being used to fill funding gaps.

The total amount held in reserves is expected to fall from £139m in March 2020 to £86m by March 2021.

Earlier this year MSPs were told there was “no end in sight” for the financial challenges facing IJBs and that they would require continuing support.

Funding is passed from the Scottish government to councils and the NHS, which in turn make payments to IJBs.

But today COSLA has today warned that local authorities face challenges of their own and could struggle to provide essential services.

Councils face a gap of at least £360m even after covid-19 funding, with income from sources such as council tax and fees for services not likely to recover for some time.

COSLA President, Councillor Alison Evison, said: “The reality is that in recent budgets, the Scottish government has chosen not to provide enough funding for the essential services that communities rely on day in day out.

“On top of this, this year we have had to contend with covid-19 which has seen the inequality in our society grow.

“Our ability to recover from this and continue to deliver for Scotland’s communities depends on a change of emphasis from Scottish government that provides fair funding for council services.

“If we are to truly recover from this pandemic then local authorities must receive a fair settlement.”

 

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