Government plans to fine councils if elderly people are stuck needlessly in hospital will cost local authorities almost �50m each year, it is estimated.

The Liberal Democrats, who compiled the figures, said the fines could trigger an increase in council taxes across England.

Ministers are planning to penalise councils if they fail to find appropriate accommodation for patients who are otherwise stuck in hospital.

Fining already overstretched social services will force councils either to cut services or increase council taxes

Paul Burstow, Lib Dems

They hope the move will free up NHS beds and help hospitals to cut waiting lists.

Under the government's plans, councils will be fined up to �120 for every day a patient is left needlessly in hospital.

Thousands stuck

Figures for the first quarter of 2002 show that about 5,500 patients were stuck in hospitals across England.

The Lib Dems said councils could face fines totalling �49m if the figures remained constant across the year.

Local authorities in London and the South East would face the bulk of the fines.

The Lib Dems estimated that councils in and around the capital would have to pay almost �25m each year if the government presses ahead with its policy.

The party predicted that the fines could see council taxes rise by an average of �2.30 per household.

Paul Burstow, the party's spokesman on older people, said the fines would hit social services which were already under financial pressure.

"Fining already underfunded social services is not addressing the cause of the problem. Current inadequate budgets mean that social services can't afford to provide proper care for vulnerable older people.

"Fines for what is really a government failure are typical of ministers looking to shift the blame.

"Fining already overstretched social services will force councils either to cut services or increase council taxes."

Mr Burstow said bed blocking could only be tackled if the government addressed the shortage of nursing home places.

"Until ministers wake up to the scale of the crisis in both the home care and care home sectors, many elderly people will be victims of a 'pass the parcel' between the NHS and social services," he said.

Liz Railton of the Association of Directors of Social Services said the issue was complex and was dependent on how well local health and social services worked together.

"I think a lot depends on how at local level social services and the NHS work together to plan their investments.

"At local level we know this is complex issue and you can't crudely conclude that fining local authorities is the answer."