District Councils: Coronavirus

(asked on 14th July 2020) - View Source

Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, what recent assessment he has made of the effect of the covid-19 outbreak on the financial sustainability of district councils.

Answered by
Simon Clarke Portrait
Simon Clarke
Chief Secretary to the Treasury
This question was answered on 22nd July 2020

Councils across the country are supporting communities, protecting the most vulnerable and helping the NHS in our efforts to combat Covid-19. In order to meet additional cost pressures, the Secretary of State announced further measures as part of a comprehensive package on 2 July. The package included an additional £500 million of support for councils for the coming weeks and months of recovery. This is in addition to the £3.2 billion already announced, taking the total unringfenced funding given to councils to help with the additional costs of coronavirus to over £3.7 billion. In total the Government has provided £5 billion in cashflow measures and almost £28 billion in additional funding for local communities, to ensure they can meet the unique pressures that the Covid-19 pandemic has placed upon them.

The Secretary of State has also announced measures to address lost income, including:

  • A co-payment scheme to cover irrecoverable Sales, Fees and Charges income in 20/21 with the Government covering 75 per cent of losses beyond 5 per cent of planned income
  • Phased repayment of Collection Fund deficits over the next 3 years
  • A commitment to determine what support is needed to help councils meet the pressures of irrecoverable tax income at the Spending Review

These measures amount to a comprehensive package of support. We will continue to monitor the impact of Covid-19 on local government.

This content was generated for your convenience by Parallel Parliament and does not form part of the official record.
Recent Documents related to District Councils: Coronavirus

1. Local COVID-19 outbreaks: lessons learnt and good practice
14/09/2020 - Department for Levelling Up, Housing & Communities
- View source

Found: August 2020 Ministry of Housing, Communities and Local Government Rapid Stocktake of Lessons Learnt

2. Financial sustainability of local authorities visualisation: update
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3. Departmental Overview 2019-20: Ministry of Housing, Communities and Local Government
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4. Report - Local government finance in the pandemic
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