Oral Answers to Questions

Rachel Hopkins Excerpts

Tuesday 28th April 2020 Commons Chamber

[Yvonne Fovargue (Makerfield) (Lab)]

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

[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.

--- Later in debate ---

[Christopher Pincher]

I think I got the gist of the hon. Lady’s question. Wigan Council has received £10.5 million of the original £1.6 billion that has been allocated to local authorities, and that funding is unringfenced so they can use it as they see fit. As the House will know, local authorities will be fully compensated for the business rates loss that they have incurred, and we will work with councils over the coming weeks to understand what their particular needs are.

[Rachel Hopkins [V]]

Yesterday the Local Government Association and CIPFA told the Housing, Communities and Local Government Committee that the Government must support councils who have lost commercial revenue streams because of the coronavirus crisis. Luton Council relies on commercial income gained through its ownership of London Luton airport. This income has dried up overnight. The Government promised to do whatever is necessary to financially support councils, so when will they be introducing funding for councils that have lost considerable commercial income to avoid those councils being forced to cut vital frontline services?

[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.