This announcement announced that they would be channeling £2 billion to local councils, spread across the next 3 years, to support adult social care. There is no additional money for the NHS. From 2020, there will be no financial support from Government to Councils towards the costs of local services. Therefore, the cost of social care will fall entirely on the council tax and business rates.
It is a woefully inadequate response to the impossible pressure the NHS and care services are under. There will be a £2bn black hole in social care funding next year alone. The inadequate funding package will result in more elderly people going without the care they need and more pressure on our hospitals as more bed blocking will result in which elderly patients have to remain in hospital as there are inadequate care packages available from the local council.
The Government has refused to give the NHS the extra funding it needs. The percentage of our national income spent on the NHS is likely to fall. It is currently 7.4%. £8 billion extra a year was promised by the Conservatives in 2015 by 2020. Even with the lower rates of GDP growth as a result of Brexit, this promised increase is at a slower pace than the rate of growth in the economy and in the numbers of elderly people.
Research by the Kings Fund shows that hospital trusts ran up record deficits of £2.45bn last year and 53% are pessimistic about ending the next year in financial balance. 63% of clinical commissioning groups are also pessimistic. Furthermore, 74% of trusts and 86% of CCGs doubt they will achieve the huge savings expected of them by 2020.