Councils could need up to four times the funding they have been
promised by the Government to cover the cover the financial
impact of the coronavirus pandemic this financial year, the Local
Government Association has told MPs today.
Cllr James Jamieson, Chairman of the LGA, and Mark Lloyd, LGA
Chief Executive, gave evidence to the Housing, Communities and
Local Government Select Committee this morning on the impact of
the coronavirus crisis on councils.
They warned that many councils are facing increased cost and
demand pressures as a result of COVID-19 at the same time as
seeing a significant drop in income. The £3.2 billion funding
they have been pledged by government will help ease some
immediate pressures.
Almost all (97 per cent) of councils have responded to the recent
financial survey carried out monthly by the Ministry of Housing,
Communities and Local Government. The LGA has seen and analysed
half of the council responses (172) which suggest that cost
pressures, lost income and savings opportunities could nationally
amount to four times more than has been received so far.
It is calling for the Government to continue to demonstrate a
rock-solid commitment that the extra costs local authorities are
facing due to the additional demands created by COVID-19, as well
as keeping services running with reduced income flows will be met
in full.
Mr Lloyd said:
“Councils are facing a very significant hole in their finances. I
am certain that all councils will be reviewing their financial
position urgently. I am aware a small number of councils have
said they will formally review their budget in the immediate
future, and I suspect that will increase.”
Cllr Jamieson said:
“Local government has stepped up and this has cost us a lot of
money, and there has been a significant impact on our income.
Councils are worried about this. There will be a need for
additional funding, and the returns councils have been feeding
through is that it can be three or four times more than the
amount already received.”
NOTES TO EDITORS
As part of the evidence session, the LGA also called for:
The social care workforce and other appropriate key council staff
to be provided immediately with sufficient and sustainable
supplies of Personal Protective Equipment (PPE).
A national-level ‘exit strategy’ for the large numbers of people
who have been accommodated on an emergency basis is needed. It is
important that the Government works with councils and other
agencies to support people currently in emergency accommodation
to move into safe housing with appropriate support after the
current measures have been lifted.
