Covid-19: Local Government Finance

Viscount Waverley Excerpts

Tuesday 7th July 2020 Lords Chamber

[Lord Greenhalgh]

I confirm to my noble friend that the guidance on care homes was not as clear as it could have been. He is right to raise the lessons we have to learn from that. On the pressures from the Business and Planning Bill that is going through the House, I guarantee that any additional burdens on local authorities will be covered by the new burdens doctrine, as soon as they are identified.

[Viscount Waverley (CB) [V]]

My Lords, this has been a particularly tough period in the history of local governance, with the LGA playing an instrumental role. Do the Government recognise that a funding gap will remain, even after the injection confirmed by the Minister just now? To address this, do the Government have plans to give greater autonomy to local authorities, as part of any new financial settlement to enable councils to get on the front foot, possibly achieved by spreading tax deficits over three years rather than the usual one?

[Lord Greenhalgh]

It has been announced that tax deficits will be deferred over three years, rather than one. That was directly in response to the Local Government Association. It is clear that the financial stability of local councils is being kept under review, with monthly updates to the department. I am sure that more announcements will be forthcoming.