The Government looked carefully with local government at the cost pressures facing local authorities in both 2006-07 and 2007-08, including those in the area of adult social care, and the ways that those pressures can be managed. The Local Government Finance Settlement for 2007-08, being the second year of a two-year settlement, provides an increase in government grant of £3.1 billion or 4.9 per cent on the previous year. This includes an extra £508 million above existing spending plans following the joint work with local government. It will allow authorities to provide effective services without the need to impose excessive council tax increases, and ensures that every individual authority with social services responsibilities gets an increase in grant of at least 2.7 per cent.
The Government are again working with local authorities in the context of the Comprehensive Spending Review 2007 to assess the pressures councils face from 2008-09 onwards, including those that arise in the delivery of adult social care.