Covid-19: Local Government Finance

Baroness Pitkeathley Excerpts

Tuesday 7th July 2020 Lords Chamber

[Lord Greenhalgh]

Adult social care is a considerable part of local authority financing—approximately one-third for most councils. It is worth noting that around 40% of the funding provided so far to meet demand pressures has gone to adult social care, and as we have made the commitment to support those demand pressures through the pandemic, that continues to be a feature of the money that is being provided to local authorities. Whether further funding is required is being kept under review.

[Baroness Pitkeathley (Lab) [V]]

Is the Minister aware of the effect that local authority funding problems have had on the voluntary and charitable organisations which provide many services to individuals and communities? They have lost both grant funding from and contracts with local authorities and many are now under threat of closure. How do the Government intend to ensure that these vital services are safeguarded? I declare an interest as president of the NCVO.

[Lord Greenhalgh]

The commitment to the local voluntary sector has been covered by the large grant that has been made available by the DCMS. We recognise the important part that local government plays in providing funding to the third sector. That will continue to be made possible because of the support that we are providing both in income support and to meet demand pressures. The third pillar, which is the loss in tax revenue, has been covered in part as well.