Oral Answers to Questions Debate

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Department: Attorney General

Oral Answers to Questions

Yvonne Fovargue Excerpts
Tuesday 28th April 2020

(4 years, 6 months ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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I must explain that Minister Clarke has not been able to get connected and I must thank Minister Chris Pincher for stepping in—I now call him to answer the substantive question tabled by Yvonne Fovargue.

Yvonne Fovargue Portrait Yvonne Fovargue (Makerfield) (Lab)
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What recent assessment he has made of the reduction in local authority revenue as a result of the covid-19 outbreak.

Rachel Hopkins Portrait Rachel Hopkins (Luton South) (Lab)
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What recent estimate he has made of the reduction in local authority revenue as a result of the covid-19 outbreak.

Christopher Pincher Portrait The Minister for Housing (Christopher Pincher)
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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.

Yvonne Fovargue Portrait Yvonne Fovargue [V]
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Wigan Council estimates that it will lose £40 million in income this year, while spending on frontline services has absolutely rocketed because of the coronavirus crisis. In addition, the loss of the dividend from Manchester airport will exacerbate that pressure—[Inaudible.]

Christopher Pincher Portrait Christopher Pincher
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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.