Oral Answers to Questions

Greg Smith Excerpts

Tuesday 28th April 2020 Commons Chamber

[Christopher Pincher]

I congratulate all local authorities on the hard work that they are undertaking at this critical time. The hon. Gentleman is right: I am going to tell him that his authority has received £18.6 million in the first tranche of funds made available to local authorities, and more will come. In addition to what I have already said, let me reiterate that we are going to work with local authorities to ensure that they get the help they need to see them through this crisis. We have made that commitment—the Chancellor has made that commitment and I reiterate it here at the Dispatch Box.

[Greg Smith (Buckingham) (Con)]

What estimate he has made of shortfalls in funding for local authorities as a result of (a) additional expenditure, (b) loss of budgeted income and (c) inability to deliver planned savings during the covid-19 outbreak.

[The Minister for Housing (Christopher Pincher)]

The Department is working closely with the sector to ensure that we have a well-rounded understanding of the impacts of covid-19 on its finances and capacity. We have already announced a significant package of additional funding worth over £3.2 billion, alongside introducing several other measures to support immediate cash flow concerns.

[Greg Smith [V]]

I warmly welcome the steps that the Government have taken to support local government at this time and I put on record my thanks to council workers in Buckinghamshire Council for their professional and dynamic response to covid-19. To reflect a local concern, Buckinghamshire Council came together as a new unitary only on 1 April, and it estimates, from lost income streams and an inability to deliver the savings planned as it put those five councils into one, potential pressure of £22.5 million over three months and £67 million if the crisis extends to a year. Will my right hon. Friend give me an assurance that the Department is working with all councils to ensure that costs are fully met?

[Christopher Pincher]

I echo my hon. Friend’s tribute to Buckinghamshire Council. To date, it has received £10.6 million of additional funding to support its response to covid-19 and it will receive further support from a second tranche of funding, as will other local authorities, for which allocations will be announced imminently. This month, Buckinghamshire will also receive an up-front payment of three months of social care grants, totalling £3.4 million. We are also deferring three months of the council’s payments to Government under the business rate retention scheme between April and June, which is worth £25 million. I hope that is of some help to the council and to my hon. Friend.