Consultation response

Local government financial sustainability: evidence to Public Accounts Committee inquiry

The NHS Confederation's written evidence submission to the Public Accounts Committee's inquiry on local government financial sustainability.

20 March 2025

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Partnership working between local government and the NHS, as well as wider partners is at the heart of delivering on the four core purposes of ICSs. ICS leaders are increasingly looking to align finances, set up shared budgets and work together on shared priorities. 

ICS leaders express concerns about the impact of NHS and local government financial constraints on partnership goals. Short-term, restricted funding allocations, such as the Better Care Fund, hinder efficiency and impede the ability of local health and care leaders to make best use of funding. 

Recent mandates to reduce ICB costs by 50% may further strain integration efforts.

Our ICS network members want to see a number of policy changes that would better support their partnership work in local communities. 

  • Align financial planning and establish multi-year funding cycles across key departments.
  • Reduce barriers to pooling budgets for integrated services.
  • Create a minister-chaired Integrated Care Partnership Forum to enhance collaboration at the national level. 

Partnership working between the NHS and local authorities offers significant opportunities to improve outcomes for local populations, and our submission includes a number of case studies to highlight this.