Oral Answers to Questions

Jeff Smith Excerpts

Tuesday 28th April 2020 Commons Chamber

[Rachel Hopkins (Luton South) (Lab)]

What recent estimate he has made of the reduction in local authority revenue as a result of the covid-19 outbreak.

[Jeff Smith (Manchester, Withington) (Lab)]

What recent estimate he has made of the reduction in local authority revenue as a result of the covid-19 outbreak.

[The Minister for Housing (Christopher Pincher)]

I apologise for the absence of the Minister of State, Ministry of Housing, Communities and Local Government, my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke)—I am a small but no less perfectly formed substitute, I hope.

We are working closely with the sector to develop a good understanding of the pressures that local authorities are currently facing. We have announced £3.2 billion of additional funding and measures to support immediate cash-flow concerns. This is a very significant package of support, which responds to the range of pressures that councils have told us they are facing.

--- Later in debate ---

[Christopher Pincher]

I am obliged to the hon. Lady for her question. In addition to the announcements I have just made, I can tell her that Luton Council has received £5.4 million of funding from that very significant package that we have put together. We have also deferred £2.6 billion in payments to central Government and we will work with local authorities to understand their particular needs. I point out that the County Councils Network, the Local Government Association and the LGA’s Community Wellbeing Board have all welcomed the Government’s interventions.

[Jeff Smith [V]]

I suspect that the Minister is going to tell me how much Manchester has been given, which is about 12% of what is actually needed. In Manchester, the council is forecasting £125 million in lost income this financial year as a result of coronavirus. That is the money that has kept services going in the face of some of the harshest cuts in the public sector and is allowing the council to lead the response to covid-19. Will the Minister pledge to fully reimburse councils for lost income, so that they can have the certainty they need to carry on their vital work on the frontline?

[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.