Oral Answers to Questions

Debate between Gerald Jones and Simon Clarke

Monday 15th June 2020 Commons Chamber

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

What recent estimate he has made of the value of revenue lost by local authorities as a result of the covid-19 outbreak.

[The Minister of State, Ministry of Housing, Communities and Local Government (Mr Simon Clarke)]

We are working closely with the sector to develop a good understanding of the pressures that local authorities currently face. We have announced £3.2 billion of additional funding, councils will be able to defer £2.6 billion in business rates payment, and £850 million in social care grants were paid in April in a move aimed at helping to ease immediate pressures on local authority cash flows.

[Mr Clarke]

As I explained in my previous answer, we will issue a comprehensive spending plan, which ensures that we do not leave local authorities facing unmanageable spending pressures in the year ahead. I point out that Greater Manchester councils have received £168 million of additional funding in response to the pandemic and their core spending power in this financial year increased by £150 million. I know that my right hon. Friend the Secretary of State has held detailed talks with Sir Richard Leese, and obviously an invitation to have further conversations as required always stands.

[Gerald Jones]

The financial position of Merthyr Tydfil and Caerphilly County Borough Councils, which cover my constituency, was difficult enough before the pandemic owing to years of UK Government austerity. Will the Minister commit to ensuring that the Welsh Government receive the funding they need for Welsh local authorities and the funding that the Prime Minister committed to Wales in February to tackle the effects of Storm Dennis? The impact of the floods and the pandemic have caused a hugely difficult situation for local authorities in my area and across Wales.

[Mr Clarke]

The winter storms have passed from memory, given everything that has happened subsequently, but they were terrible and had a significant impact on several communities, particularly on the west coast of the country. I am very conscious of that. We of course make a commitment that the funds that were promised will be paid. Local government is a devolved matter and therefore my Department does not engage directly with Welsh councils, but they can rest assured that they will receive their fair share according to the Barnett formula.