Local Government Finance: Coronavirus

Ministry of Housing, Communities and Local Government written question – answered on 7th September 2020.

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Photo of Colleen Fletcher Colleen Fletcher Opposition Whip (Commons)

To ask the Secretary of State for Housing, Communities and Local Government, how much funding his Department has provided to each local authority to help them deal with the effect of the covid-19 outbreak.

Photo of Simon Clarke Simon Clarke Minister of State (Housing, Communities and Local Government)

We have provided councils with an unprecedented package of support, allocating £4.3 billion of support for spending pressures, including £3.7 billion of un-ringfenced grants and the £600 million Infection Control Fund. This direct financial support the Government has provided is part of comprehensive package of support which includes cashflow measures, support for the homeless, and for bus and tram services – not to mention grants and business rates reliefs for businesses. In total, the Government has committed almost £28 billion to local areas to support councils, businesses and communities. Full information on the amount each council has received from the £3.7 billion of un-ringfenced grants, as well as other measures, can be found here: https://www.gov.uk/government/publications/covid-19-emergency-funding-for-local-government

The Government has also introduced a co-payment scheme?to compensate local councils for irrecoverable and unavoidable losses from sales, fees and charges income generated in the delivery of services, in the financial year 2020/21. Councils?will absorb the first 5 per cent of all?relevant,?irrecoverable?losses?compared to?budgets,?with?the?Government?compensating?councils?for 75p in every pound?of loss?thereafter.

The?Government?has also?confirmed that it will extend the period over which councils must manage shortfalls in local tax income relating to 2020-21, from 1 to 3 years. This will ease immediate pressures on authorities when budget setting for 2021-22, protecting their ability to deliver essential local services.?We?will announce?further?details?of how it will also support?local?authorities to?manage?tax losses?at the comprehensive spending review later in the year.

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