Covid-19: Local Government Finance

Earl of Clancarty Excerpts

Tuesday 7th July 2020 Lords Chamber

[Lord Greenhalgh]

My noble friend is right to say that the credit ratings of local authorities remain strong, and where there have been some downgrades, that happened before the pandemic. I have made an undertaking to see that local authorities continue to get access to funding. However, we should recognise that the main lender to them is the Public Works Loan Board, which is an agency of HM Treasury.

[The Earl of Clancarty (CB) [V]]

My Lords, given the current concerns about social care, how will the Government support local authorities to improve and extend meeting social care needs, particularly in the light of a potential second wave of Covid-19?

[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.