Bankrupt councils

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Bankrupt councils

Post by Long slender neck »

https://www.theguardian.com/commentisfr ... estminster

There's already been quite a few councils going 'bankrupt', some like Thurrock having made dodgy investments. I'm just wondering whats going on here? Correct me if I'm wrong on the following please:

Over a decade of austerity, during which
Funding from central government cut massively
Big increase in social care numbers and costs and majority of budget go on this.
Councils not allowed to increase council tax over a low percentage without a referendum.

It seems to me this is ideological destruction of local government(classic Tories). How do we have a high tax burden, but poorly funded public services?

My council has been independently assessed as well run financially but is warning it may have to issue a bankruptcy notice this year. They have given examples where a single child in care is costing them £38K a week! :shock:

Can someone explain to me exactly what 'social care' costs are?
Who is raking in social care money? Tories by any chance?
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Re: Bankrupt councils

Post by The Mindsweep »

Who is raking in social care money? Tories by any chance?

Private landlords
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Re: Bankrupt councils

Post by Dunners »

Long slender neck wrote: Mon Jan 15, 2024 11:17 am Can someone explain to me exactly what 'social care' costs are?
Who is raking in social care money? Tories by any chance?
The investors in private providers and private landlords.
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Re: Bankrupt councils

Post by Long slender neck »

Dunners wrote: Mon Jan 15, 2024 11:24 am
Long slender neck wrote: Mon Jan 15, 2024 11:17 am Can someone explain to me exactly what 'social care' costs are?
Who is raking in social care money? Tories by any chance?
The investors in private providers and private landlords.
Providing what? Are we talking about old ladies, meal on wheels, mental people or what?
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Re: Bankrupt councils

Post by Long slender neck »

The Mindsweep wrote: Mon Jan 15, 2024 11:20 am Who is raking in social care money? Tories by any chance?

Private landlords
So social care is code for housing benefit?
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Re: Bankrupt councils

Post by Dunners »

Long slender neck wrote: Mon Jan 15, 2024 11:29 am
Dunners wrote: Mon Jan 15, 2024 11:24 am
Long slender neck wrote: Mon Jan 15, 2024 11:17 am Can someone explain to me exactly what 'social care' costs are?
Who is raking in social care money? Tories by any chance?
The investors in private providers and private landlords.
Providing what? Are we talking about old ladies, meal on wheels, mental people or what?
Private care (social, elderly etc) providers and their supply chains.
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Re: Bankrupt councils

Post by Long slender neck »

Care homes? Home care(people going around bathing people etc)? I thought councils didnt really fund that anymore.
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Re: Bankrupt councils

Post by Hoover Attack »

Who do you think pays for it?
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Re: Bankrupt councils

Post by Dunners »

Long slender neck wrote: Mon Jan 15, 2024 11:30 am
The Mindsweep wrote: Mon Jan 15, 2024 11:20 am Who is raking in social care money? Tories by any chance?

Private landlords
So social care is code for housing benefit?
No, but the two impact on each other as housing is so intrinsic to a persons health and wellbeing. The proportion of the population that requires support is rapidly increasing. This is partially a consequence of falling fertility rates for decades (we're an ageing society), but there are other factors too (in some of these areas the number of children in care has doubled in the last few years). And, as we see sweeping cuts to other services, it is the local authorities that end up having to try and plug the gap with diminishing resources and funding.
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Re: Bankrupt councils

Post by Long slender neck »

Hoover Attack wrote: Mon Jan 15, 2024 11:39 am Who do you think pays for it?
Councils pay for people who cant afford it? NHS pay if theres a medical need.
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Re: Bankrupt councils

Post by Proposition Joe »

Long slender neck wrote: Mon Jan 15, 2024 11:29 am
Dunners wrote: Mon Jan 15, 2024 11:24 am
Long slender neck wrote: Mon Jan 15, 2024 11:17 am Can someone explain to me exactly what 'social care' costs are?
Who is raking in social care money? Tories by any chance?
The investors in private providers and private landlords.
Providing what? Are we talking about old ladies, meal on wheels, mental people or what?
Scumlords offering "B&B" placements as accommodation for those on each Council's homeless list. The best earner being properties divided up into bedsits or just single rooms, raking in full 1 bedroom LHA rate for each one. The last Council I worked at the housing budget was almost completely spent purely on that so they ended up at least a million over budget each year.
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Re: Bankrupt councils

Post by Long slender neck »

And that goes down as social care? Sounds like a HMO.
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Re: Bankrupt councils

Post by Long slender neck »

It just doesnt make sense that thye govt have these things that councils must legally provide, but no money to do it with. I asked my MP why they hadnt reformed social care and its funding despite it taking up most of councils budget, she said councils wanted to delay its implementation.
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Re: Bankrupt councils

Post by Proposition Joe »

Long slender neck wrote: Mon Jan 15, 2024 12:21 pm And that goes down as social care? Sounds like a HMO.
Its not social care per se, but housing budgets and social care budgets are closely intertwined. Plus, this kind of substandard accommodation is often used for people who very much need input from the Social Care teams and thus has a big knock on effect.
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Re: Bankrupt councils

Post by Omygawd »

Part of a much larger issue where a small percentage of the NHS critical care budget needs to be ringfenced for investment to investment in prevention in the Community. The issue about social stability and health benefits from remaining in one's home is paramount. Most Councils are reluctant to take on rogue landlords because of the knock on effect on homelessness.

Successive Governments of all persuasions have cut Local Authority funding to the bone and restricted their ability to stand or fall on their policies and the money they can raise in taxation. There are also plenty of examples of abandoned people with physical and emotional needs who become the responsibility of a Local Authority at huge cost.

However there are also many examples of Councillors who have no social of commercial acumen who make decisions that plunge Councils into the financial mire. A very complicated and emotive set of subject areas.
Last edited by Omygawd on Tue Jan 16, 2024 8:27 am, edited 1 time in total.
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Re: Bankrupt councils

Post by Dunners »

Before now, most of the decay occurring throughout society, local services and the built environment was mainly impacting on the long-term sick or poor. But now it's reached a point where it will become impossible to ignore for most people.
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Re: Bankrupt councils

Post by Daily Express bot »

The Mindsweep wrote: Mon Jan 15, 2024 11:20 am Who is raking in social care money? Tories by any chance?

Private landlords
Councils are begging private landlords to sign over their properties to them as they are so shorty of accommodation so heavily reliant on them to house those who they must by law.
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Re: Bankrupt councils

Post by Tuffers#2 »

Long slender neck wrote: Mon Jan 15, 2024 11:55 am
Hoover Attack wrote: Mon Jan 15, 2024 11:39 am Who do you think pays for it?
Councils pay for people who cant afford it? NHS pay if theres a medical need.
Council takes benefits from pensions pip savings. My mates Mum passed end of August. She paid through pension & pip.
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Re: Bankrupt councils

Post by Tuffers#2 »

Daily Express bot wrote: Tue Jan 16, 2024 2:22 pm
The Mindsweep wrote: Mon Jan 15, 2024 11:20 am Who is raking in social care money? Tories by any chance?

Private landlords
Councils are begging private landlords to sign over their properties to them as they are so shorty of accommodation so heavily reliant on them to house those who they must by law.
That must be why the Tories are increasing Housing Benefits by up to £800 from April.
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Re: Bankrupt councils

Post by Daily Express bot »

Joe315 wrote: Tue Jan 16, 2024 2:39 pm
Daily Express bot wrote: Tue Jan 16, 2024 2:22 pm
The Mindsweep wrote: Mon Jan 15, 2024 11:20 am Who is raking in social care money? Tories by any chance?

Private landlords
Councils are begging private landlords to sign over their properties to them as they are so shorty of accommodation so heavily reliant on them to house those who they must by law.
That must be why the Tories are increasing Housing Benefits by up to £800 from April.
£800 will be a drop in the ocean to even rent a basic flat these days. One beds in Leyton get £130-1500 these days. Labour MP’s have buy to let properties as well as Tories. Don’t knock people who prudently invest their own money to provide accommodation. They are quite legally creating an investment. They are not robbing banks !
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Re: Bankrupt councils

Post by Proposition Joe »

If they want an investment, why don't they open a stocks and shares ISA and leave the houses they don't live in for other people? They're not doing it to provide accommodation. Only a very silly person would believe that.
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Re: Bankrupt councils

Post by Mick McQuaid »

1 in 3 households, including myself, privately renting now receive some amount of universal credit (according to Shelter, so I admit not a completely unbiased source). The amount of money funnelled to private landlords is mental.
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Re: Bankrupt councils

Post by Long slender neck »

Daily Express bot wrote: Tue Jan 16, 2024 3:21 pm
Joe315 wrote: Tue Jan 16, 2024 2:39 pm
Daily Express bot wrote: Tue Jan 16, 2024 2:22 pm

Councils are begging private landlords to sign over their properties to them as they are so shorty of accommodation so heavily reliant on them to house those who they must by law.
That must be why the Tories are increasing Housing Benefits by up to £800 from April.
£800 will be a drop in the ocean to even rent a basic flat these days. One beds in Leyton get £130-1500 these days. Labour MP’s have buy to let properties as well as Tories. Don’t knock people who prudently invest their own money to provide accommodation. They are quite legally creating an investment. They are not robbing banks !
So you're saying anything legal is alright? Its okay to exploit others to enrich yourself? Wouldnt happen to be an owner of multiple properties, would you?
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Re: Bankrupt councils

Post by Tuffers#2 »

Daily Express bot wrote: Tue Jan 16, 2024 3:21 pm
Joe315 wrote: Tue Jan 16, 2024 2:39 pm
Daily Express bot wrote: Tue Jan 16, 2024 2:22 pm

Councils are begging private landlords to sign over their properties to them as they are so shorty of accommodation so heavily reliant on them to house those who they must by law.
That must be why the Tories are increasing Housing Benefits by up to £800 from April.
£800 will be a drop in the ocean to even rent a basic flat these days. One beds in Leyton get £130-1500 these days. Labour MP’s have buy to let properties as well as Tories. Don’t knock people who prudently invest their own money to provide accommodation. They are quite legally creating an investment. They are not robbing banks !
Just robbing People of Homes. Mortgages falling & Rents Rising, As someone said earlier " Scumlords".
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Re: Bankrupt councils

Post by Currywurst and Chips »

Thirty eight councils (10% of all councils) have no borrowing whatsoever yet Woking has circa £19K per person who lives there

Woking doesn’t strike me as a place that has extravagant needs in terms of demand from their populous needing state support (I may be wrong)

https://www.bbc.co.uk/news/uk-67707156
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