Local Government Finance

(asked on 2nd June 2020) - View Source

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

To ask Her Majesty's Government what representations they have received from the Local Government Association about the financial situation of local authorities in England and Wales.


Answered by
Lord Greenhalgh Portrait
Lord Greenhalgh
This question was answered on 16th June 2020

The Department regularly meets with council Leaders, Chief Executives of English councils and their representatives, including the Local Government Association, to ensure we have a collective understanding of the issues arising from the Covid-19 outbreak. Local government is a devolved matter, and therefore MHCLG do not engage directly with Welsh councils.

We have now made £3.2 billion available to local authorities in England through an un-ringfenced grant so they can address pressures they are facing in response to the pandemic. The package recognises the additional costs and pressures on finances councils as a result of the current crisis. It demonstrates the Government’s commitment to making sure councils, including upper and lower tier authorities, have the resources they need to support their communities through this challenging time.

In total, the Government has committed over £27 billion to local areas to support English councils and their communities. This also includes: £300 million to support the new test and trace service, £600 million to support providers through a new Infection Control Fund and £12.3 billion of support through the Small Business Grants Fund and the Retail, Hospitality & Leisure Grants.

We will continue to work with local government and their representatives to ensure they are managing as the pandemic progresses.

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