Covid-19: Local Government Finance Debate
Full Debate: Read Full DebateBaroness Pinnock
Main Page: Baroness Pinnock (Liberal Democrat - Life peer)Department Debates - View all Baroness Pinnock's debates with the Ministry of Housing, Communities and Local Government
(4 years, 4 months ago)
Lords ChamberTo ask Her Majesty’s Government what is their response to reports that five of the largest councils in the United Kingdom may have to issue a notice under section 114 of the Local Government Finance Act 1988, as a result of a loss of income due to the COVID-19 pandemic.
The Government have made £3.2 billion available to local authorities through an unring-fenced grant so that they can address the pressures they are facing in response to the Covid-19 pandemic. We are working on a comprehensive plan to ensure councils’ financial sustainability for the year ahead, and we will continue to work closely with them to understand the costs that they are facing.
Despite what the Minister has said, Hansard of 28 April records the firm commitment of the Government to
“back councils with the financial resources they need”,—[Official Report, Commons, 28/4/20; col. 203]
including support for the loss of income as a result of Covid. Can the Minister please provide a firm assurance that the financial resources will be made available in any such comprehensive plan?
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.