Source · Select Committees · Public Accounts Committee

Recommendation 3

3 Accepted

Confirm drug-related funding and public health grants early, providing long-term certainty to local authorities.

Recommendation
Uncertainty over funding allocations has made it difficult for local authorities to commission and deliver the high-quality treatment and recovery services that are needed. In 2022–23 and 2023–24, DHSC encountered delays in allocating substance misuse treatment funding to local authorities. These delays hindered early progress by making it harder for local authorities to commission services. We welcome that DHSC has confirmed substance misuse treatment funding for 2024–25 though note that at the time of our evidence session in December it had yet to award its public health grant. As we said in our report on Alcohol Treatment Services, DHSC should set out annual funding allocations to local authorities in good time. Further, as strategy funding is only committed to 2024–25, it is difficult for local authorities to recruit staff and contract with service providers to rebuild the treatment workforce. We are disappointed that departments seem unwilling to explore how to provide local authorities with more confidence over long-term funding. Recommendation 3: To improve certainty around funding for drug treatment services, the DHSC and Home Office should: • ensure allocations of drug-related funding and public health grant are confirmed well before the start of the relevant financial year; and, • consider what comfort they can provide to local authorities to allow them to plan for the longer term and deliver the right investments to make a difference in their areas.
Government Response Summary
The government states it published supplementary Drug Strategy grants for 2024-25 in November 2023 and Public Health Grant allocations for 2024-25 in February 2024, providing clarity for local planning. Work is also ongoing to develop a strong case for investment beyond March 2025.
Government Response Accepted
HM Government Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented The government’s vision is to create a world class treatment and recovery system in line with the recommendations of Dame Carol Black’s independent review and the 10-year Drug Strategy. The government is committed to supporting local areas to plan, commission and deliver high quality and effective drug treatment services over the long term. The government acknowledges that having clarity over financial allocations is an important enabler for local planning and will give as much notice as is feasible of allocations for future years. DHSC, which is responsible for distributing drug-related funding, published the allocations for the supplementary Drug Strategy grants for 2024-25 in November 2023, to help local authorities and their delivery partners have clarity about available funding in good time. The Public Health Grant allocations for 2024-25 were published on 5th February 2024. DHSC will continue to work closely with local authorities to understand risks, help mitigate impacts and support their future plans and to utilise the evidence-based menu of interventions. This will guide investment decisions and enable early mobilisation of delivery. As the Committee are aware, HM Treasury carries out spending reviews to determine how to spend public money, usually over a multi-year period, in line with the government’s priorities and wider fiscal position. The government continues to reiterate its commitment to delivery of the 10-year ambition set out in the Drug Strategy and work is ongoing to develop a strong case for investment beyond March 2025, including by commissioning impact and economic evaluations of the treatment and recovery portfolio.