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

To ask the Secretary of State for Housing, Communities and Local Government, if he will make it his policy to allocate funding to local authorities to (a) meet losses in income from rents and other commercial payments and (b) reimburse losses arising from outsourced leisure contracts during the covid-19 outbreak.

On 2 July, the Government announced a co-payment scheme?to compensate?local councils?for?relevant,?unforeseen sales, fees and charges?losses?that are irrecoverable. Councils?will absorb the first 5 per cent of all?relevant,?irrecoverable?losses?compared to?budgets,?with government?compensating?councils?for 75p in every pound?of loss?thereafter.

This scheme is designed to compensate for transactional income losses that are truly irrecoverable. This will include transactional income from customer and client receipts which are generated from the delivery of goods and services and which were budgeted for in 2020/21, including leisure centres, but excluding rents and commercial investment income.

Commercial income losses are more complicated in nature, and the Government recognises that there are a complex set of variables relating to commercial income sources including recoverability.

We are also aware of instances where councils are currently experiencing cost pressures by supporting local services, such as leisure, which are delivered through contracted arrangements. We will continue to work with DCMS and councils over the coming weeks to ensure they are managing as the pandemic progresses. ?The Government stands ready to support any local authority with particular financial concerns.