Oral Answers to Questions

Debate between Steve Reed and Simon Clarke

Monday 20th July 2020 Commons Chamber

[Steve Reed (Croydon North) (Lab/Co-op)]

I am grateful to you, Mr Speaker, for allowing me to ask the supplementary despite my hon. Friend the Member for Newport East (Jessica Morden) being held up.

Does the Minister recognise that after all Government funding is taken into account, including the emergency funding, councils still face a funding gap of between £6 billion and £10 billion, while they are of course required by law to balance their budgets in-year and take appropriate measures to ensure that that happens? How many jobs does he estimate will be lost as councils are forced to make severe cuts to plug this gap?

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

Our engagement with councils has enabled us to understand pressures at a national and local level across England. To date, we have announced £4.3 billion-worth of additional resource to councils, including £3.7 billion of unring-fenced funding. We have also announced the sales fees and charges co-payment scheme to compensate for irrecoverable income loss that is designed to flex according to the extent of the losses as they crystallise. We will also extend the period over which councils must manage shortfalls in local tax income relating to this financial year from one year to three years. All those measures are intended to prevent councils from having to make difficult in-year decisions. I reiterate the message that I have now sent out countless times to individual authorities: any authority facing an unmanageable situation should make contact with my officials.