Covid-19: Local Government Finance

Debate between Lord Rooker and Lord Greenhalgh

Monday 29th June 2020 Lords Chamber

[Lord Greenhalgh]

My Lords, I can give an assurance that a comprehensive plan will be announced shortly. It is a little unfortunate that the timing of this Question is before that announcement. Of course, these general measures will support the vast majority of councils through the difficult process ahead; any individual councils that have problems should contact the department, or myself or other Ministers responsible.

[Lord Rooker (Lab) [V]]

How would a chief financial officer judge the Secretary of State’s view at the No. 10 press conference on 18 April when he said:

“At the beginning of this emergency I told local councils that we would give them the resources they need to do the job. And I meant it.”


Would the Government consider asking CIPFA and the NAO to conduct a study of local government extra expenditure so there can be trust on both sides before any council declares bankruptcy?

[Lord Greenhalgh]

We need to recognise that monthly reports are now provided to the ministry by all local authorities so we can keep track of expenditure. Broadly speaking, the first two tranches, totalling some £3.2 billion, are in line with—or approximately the same as—the money spent to address demand pressures related to Covid-19. In addition, a number of other steps have been taken to deal with cash-flow emergencies and other pressures. As I said in response to the previous question, the definitive financial plan will be made but we will continue to keep close contact with councils.