Importance of Financial Control and Budgeting in Health and Social Care

Portfolio of Tasks

Table of Contents
Table of Contents.................................................................................................................................
INTRODUCTION................................................................................................................................
MAIN BODY.......................................................................................................................................
Task 1...................................................................................................................................................
Legal, financial and regulatory environment of health and social care.......................................
Private Finance Initiatives (PFI), agency partnerships, competitive tendering and
outsourcing in the health and social care sector..........................................................................
Agency theory and explanation of importance of and ways of communicating with
stakeholders in the context of budgeting.....................................................................................
Task 2...................................................................................................................................................
Impact of financial constraints, costs and budgets on health and social care service
managers, their clients and other stakeholders............................................................................
Challenges of budgeting in public sector organisations..............................................................
Advantages and disadvantages of incremental and zero-based budgeting..................................
Task 3.................................................................................................................................................
Compute the breakeven point and margin of safety for the year 2018 and 2019......................
CONCLUSION..................................................................................................................................
REFERENCES...................................................................................................................................
Books and Journals:...................................................................................................................

INTRODUCTION
In the organization, it is identified that budgetary control is playing an important role
as it helps to manage expenditure and income (Bogoslavtseva and et.al., 2019). It is
comparing actual income or expenditure that they are required corrective action or not. This
report aims to understand the importance of financial control and budgeting and health and
social care. It will discuss the analysis of the legal, financial and regulatory environment of
the health and social care sector, evaluation of different alternative funding options in the
health and social care sector, and agency theory in the context of NHS. In addition to this, it
will also discuss the impact of financial constraints on health and social care services. In this
report, there will be a discussion of particular challenges of budgeting and the advantages and
disadvantages of zero-based budgeting.
MAIN BODY
Task 1
Legal, financial and regulatory environment of health and social care
The Health and Social Care Act 2012 introduce the legal duties of health inequalities.
This act says reducing the health inequalities among the people. This Act also changes local
authorities on a public health function (Yusuf, 2021). The Equality Act 2010 says that
establishing equalities in all public sector which aim to integrate with all the business bodies.
The legalisation may be seen as complimentary for the public sector to take action to reduce
inequality at a local and national level.
The primary aim is the act is to ensure public safety. The UK government is
responsible for 32 regulating. In health care, professional regulation is the much broader term
for ensuring the patient is service care unit. But the UK framework is inconsistent, poorly
understood. There is a wide range of inconsistencies with different regulators' different
power. But the major drawback is the expensiveness of the current system Because of this
change regulatory bodies must be developed scrutinised and secured by the government.
Health care gives the power to the regulator for making their own rules. Make a new barring
scheme for prevention professionals who did crimes in their profession. Greater use of
meditation for fitness in their profession. The regulator should consult the public and work to
collaborate less than government interference. The regulator should make a very clear
framework that is needed to protect the public.

Local authorities are the main source of funding in health and social care. In recent
years, this increased share also come from NHS. Its half of service care is spent on services
for older people and 52% spend on working-age people mainly support for mental health
conditions or learning disabilities (Aung and Mon, 2020). This service is tested and funded
by local taxation and Government grant. Some user gives a relatively large number of funders
in this section. Funding is recovered in recent years but the population is increasing day by
day. That means pressure on the government.
Because of the pressure, needy people do not access formal care and service. It seems
that the increasing population reduced the funding according to data funding in 2018/19
subsequently is lower than 2010/11. So that the government will increase funding in 2019-20.
Five priorities for the government to take initiative for social care is that stabilise the current
social care system and include boosting staff pay or much sure about to improve access to
services. This improvement increases people's health and their access to services. More
reform in funding care unit is shown as fair and provide government protection against social
care cost. Requiring any option genuine government system that is an investment in the
Health care system include the long term funding settlement for capital driven by the need of
patient and staff. The government need to stabilise and improve the current system because it
is in collapse boosting staff pay to alleviate the problem of recruitment and retention.
Government need to improve public care funding.
Private Finance Initiatives (PFI), agency partnerships, competitive tendering and outsourcing
in the health and social care sector
The private firm is collaborating to complete the public project. It starts in 1992 with
the UK printer. PFI is part of privatisation or financial and presents the accountability of
public spending. The Private Finance Initiative is a method that is used for privatisation.
Which is an investment in the private sector to deliver to the public sector. Infrastructure or
specification according to the public sector (Shuaib and Olanrewaju, 2020). It is broader
procurement for public and private partnerships main using of project finance to deliver
public service. PFI involves contracting the design building and operation to public sector
private sector companies and long term contracts. It increases competition between private
providers. PFI is used for the investment needed to build assets for ongoing service
requirements. PFI was used to build prisons, hospitals, schools, roads. NHS and PFI will
increase the hospital they are coordinate with each other and give good results in making a
hospital.