The Office for Budget Responsibility has published a comprehensive analysis of the impact of Government spending on public activities in its annual Fiscal Sustainability Report (FSR). The report provides a number of projections, some of which are likely to be of particular interest to anyone providing services in the care sector.

Of particular note are the reports projections in relation to the required increase in public spending needed to meet the rising care needs of old-aged dependants. The FSR suggests that public spending on adult social care in England will need to rise from £16.5 billion in 2016-17 to £18.8 billion by 2019-20.

Undoubtedly, the increased ageing population, additional pressures on health spending coupled with the recent Court of Appeal ruling on payments during “sleep-in” shifts will create an ongoing fiscal challenge for the Government. It remains unclear as to where all this extra funding will come from. Will the Government inject the much needed funds into the care sector from centrally held finances; or will it allow local authorities to determine how the matter should be resolved (i.e. by increasing council tax)?

We will keep you informed of any developments on this issue.

At Markel Law we regularly comment on SME related matters. 

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