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The government will allow local authorities in England to increase council tax by 2% to cover a funding shortfall in adult social care, George Osborne is expected to announce.
Crisis talks are taking place later between care home owners and council leaders amid mounting concern a large number of providers are preparing to pull out of the market.
The adult social care sector in England faces a gap of 200,000 care workers by the end of this Parliament because of restrictions on immigration and a failure to attract British workers.