Councils need to tackle social problems before they escalate in the recession, says the Audit Commission.

A new report by the Audit Commission has revealed that UK councils will face significant social costs – including demands for benefits and help coping with mental ill-health – as the recession deepens.

The organisation’s report, When it comes to the crunch…, looks at the broader issues facing councils during a recession.

It has identified various different ‘waves’ within a recession. Firstly, the initial wave brings business failures and job losses; the second, long-term unemployment, which compounds various social problems such as house repossessions, alcoholism, increases in domestic violence, and even issues such as stray dogs and abandoned cars.

The third wave sees a period of ‘unequal recovery’, when most areas of society have recovered while a minority struggle with long-term issues.

The report states that each wave should be approached by councils in different ways: The reaction to ‘wave 1’ should be to protect businesses and jobs; ‘wave 2’ to support communities by dealing with social issues and increasing employment opportunities; and ‘wave 3’ to start the recovery process by targeting those areas most affected and encouraging growth within the area.

Steve Bundred, Chief Executive of the Audit Commission, said: “Local government’s initial response to the recession has been positive and supportive of their local economies. But councils need to move from being reactive to proactive, and prepare to combat a wide range of resultant social problems.

“When it comes to the crunch, those with sound plans focused on local issues, and delivered in partnership, will stand the best chance.”

Councils will need to tackle these social issues effectively, as the independent public service watchdog has predicted that unemployment will stay high for a further two years before any respite is felt.