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

To ask the Secretary of State for Housing, Communities and Local Government, what estimate his Department has made of the number and proportion of local authorities that may have to issue s114 notices during the covid-19 outbreak; and what assessment he has made of the effect of that matter on the effectiveness of the local response to the covid-19 outbreak.

We have now made £4.3 billion available to local authorities, including £3.7 billion of un-ringfenced grants and the £600 million Infection Control Fund and, on 2 July, the Government announced a comprehensive package of support. This included a co-payment mechanism for irrecoverable Sales, Fees and Charges income, a phased repayment of Collection Fund deficits over the next 3 years, and a commitment to set out support for local authorities for irrecoverable tax income at the Spending Review.

We recognise that?even with?the?considerable support already provided, there will be?individual authorities?with either unique circumstances?or residual?issues?resulting in unmanageable pressures.? The Department continues to engage regularly with the local government sector, which includes our ongoing financial monitoring survey and direct contact with councils and their representatives, local Leaders and Chief Executives.

If the Section 151 officer of a council judges that the council is unable to set or maintain a balanced budget, they must consider the possibility of a Section 114 notice. We have worked closely with CIPFA who have temporarily amended their guidance on the use of Section 114 notices to encourage local authorities to make contact with the Department in the first instance to advise of any immediate financial concerns.

We will continue to monitor the impact of Covid-19 on local government and would ask that any local authority who is faced with an?unmanageable pressure or is concerned about their future financial position should approach MHCLG for discussion.