Oral Answers to Questions

Debate between Gareth Bacon and Steve Barclay

Tuesday 7th July 2020 Commons Chamber

[Steve Barclay]

My hon. Friend is right to identify the benefit of pooling through the UK approach, and the specific issues relating to the oil and gas industry. That is why industry leaders met the Department for Business, Energy and Industrial Strategy on 11 June. Work is ongoing, particularly in relation to what support can be provided to the sector. We are very mindful of its significance to the economy of Scotland.

[Gareth Bacon (Orpington) (Con)]

What fiscal steps he is taking to support local authorities during the covid-19 outbreak.

[The Chief Secretary to the Treasury (Steve Barclay)]

Last week, the Government announced a comprehensive package to support councils in responding to the pressures caused by covid-19. We have now provided more than £3.7 billion of additional grant funding for councils, and announced a major new scheme to reimburse them for their lost income.

[Gareth Bacon]

Fears have been expressed that the Government will fully bail out financially poorly managed local authorities, while better managed local authorities, such as the London Borough of Bromley, may have to meet covid-19 shortfalls through their reserves. Will my right hon. Friend offer reassurances on that point? If covid-19 funding shortfalls remain, will he consider allowing a capitalisation directive to enable councils to fund one-off shortfalls through capital receipts or borrowing?

[Steve Barclay]

We have always taken the approach that borrowing is allowed for infrastructure and capital projects, but not day-to-day revenue. That policy will continue. At the same time, all councils have received support, and £16 million has been allocated to Bromley. It is right that the support addresses councils’ varied needs, and that is very much the approach that we have taken.