Funding cuts for frontline mental health services have forced a local NHS Trust to terminate its contract with Bradford Council.

Bradford District Care Trust has served notice to end the Section 75 Agreement with Bradford Council to provide adult social care mental health services on behalf of the authority.

Bradford Council has cut its adult social care budget by £750,000 for 2012/2013, but had been unable to negotiate with the trust over where savings could be made, resulting in the contract being terminated.

Bradford Council will now have to decide whether it wants to re-tender the contract for adult social care services (housing support and wellbeing services) for people under the age of 65 with mental health needs, or bring the service back in-house.

The Council says it will consult with people who use mental health services, their carers, families, and staff, before making any decisions.

Both organisations say they will work together to make sure there is a smooth transition of services to maintain quality of care and to support staff affected by the changes.

Simon Large, chief executive of Bradford District Care Trust said: “This decision has not been taken lightly and we are disappointed that we are unable to take the agreement forward.

“The agreement is legally binding and clearly lays out the standards required for mental health and social care across Bradford. It also sets out responsibilities for funding this care in a difficult economic climate. The Council has cut funds by 21 per cent to frontline mental health services over the last 12 months.

“We have not been able to reach agreement with the Council on how these savings will be made. It is therefore necessary to hand back management of these services to our partner in keeping with the terms of the agreement.

“Partnership working is still important to us and we are clear that the ending of this agreement should not signal the end of joint working.”

Councillor Amir Hussain, Bradford Council’s executive member for adult services, said: “We will work closely with the care trust, service-users and their families to make sure the transfer is as smooth as it can be, and those affected by the changes are supported and kept informed about the transfer plans.”