Baroness Louise Casey has been urged to look at local authority trading companies (LATCo) providing an ‘antidote' to billions of pounds being drained from social care.

Rhian Stone, chief executive of Bolton Cares, Bolton MBC's LATCo, told HM's sister title, The MJ''s, inaugural LATCo conference in Birmingham last week: ‘The problem is the dominance in recent years of the private sector – the profit motive in social care is a serious drain on the overall budget.

‘Three to four billion pounds per year of adult social care revenue goes to private equity backed employers. This means that a significant amount of public funding flows out as interest or investor returns.

‘LATCos are the perfect vehicle for providing an antidote to this.'

Speaking following her panel session, Stone added: ‘Social care is a very tough and volatile market.

‘LATCOs offer stability, they are not-for-profit, democratically accountable, community-based and reinvest surplus into services and communities.

‘The LATCO model in social care is not new but it is growing and is a powerful alternative to stabilise the social care sector, working alongside other independents and the voluntary sector.'

Speaking ahead of Baroness Casey attending The MJ's Future Forum in Hertfordshire this week, Stone said: ‘As Baroness Casey leads this all-important review of social care, I hope her and the team take a look at the LATCo model as part of the solution.'