Oral Answers to Questions

Jeff Smith Excerpts

Monday 15th June 2020 Commons Chamber

[Mr Clarke]

The hon. Lady asks an excellent question. Clearly, it is important that local authorities and business work together. We have so far allocated a total of more than £103 million to Hounslow Borough Council precisely to help ensure that we support the whole community. That includes a generous settlement of grants for businesses as well as additional funding worth more than £14 million for the council. It is vital that any authority with particular issues—for example, links to aviation—that is struggling to make the books balance speaks to the Department and we will of course always be happy to offer detailed advice.

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

What recent estimate he has made of the value of revenue lost by local authorities as a result of the covid-19 outbreak.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

What recent estimate he has made of the value of revenue lost by local authorities as a result of the covid-19 outbreak.

[The Minister of State, Ministry of Housing, Communities and Local Government (Mr Simon Clarke)]

We are working closely with the sector to develop a good understanding of the pressures that local authorities currently face. We have announced £3.2 billion of additional funding, councils will be able to defer £2.6 billion in business rates payment, and £850 million in social care grants were paid in April in a move aimed at helping to ease immediate pressures on local authority cash flows.

[Jeff Smith]

Manchester has lost £136 million in revenue this year alone. In Greater Manchester, the funding gap is £406 million. In the UK, it is £10 billion. The Minister just told us unequivocally that local authorities should not make plans for more austerity. Is he committing to fully fund those gaps?

[Mr Clarke]

As I explained in my previous answer, we will issue a comprehensive spending plan, which ensures that we do not leave local authorities facing unmanageable spending pressures in the year ahead. I point out that Greater Manchester councils have received £168 million of additional funding in response to the pandemic and their core spending power in this financial year increased by £150 million. I know that my right hon. Friend the Secretary of State has held detailed talks with Sir Richard Leese, and obviously an invitation to have further conversations as required always stands.