The £1.6 billion funding, recently announced, means
councils in England will be provided with over £3.2
billion to deal with the immediate impacts of
coronavirus.
During the pandemic, councils are playing a crucial role
and this extra funding will help them to continue to
deliver frontline services and support to those who need
it most, as well as meeting new pressures.
Their work includes getting rough sleepers off the
streets, supporting clinically vulnerable people and
providing assistance for our public health workforce.
The funding will be distributed to councils across
England based on their population and the latest
assessment on the challenges they are facing.
The split of funding between county and district councils
also reflects the financial pressure being felt by
councils as a result of residents doing the right thing
and staying at home, rather than using services including
car parks and leisure facilities. A clear majority of
district councils will now receive more than £1m of
additional funding to ensure they are fully supported.
Local Government Secretary Rt Hon MP said:
Councils are playing a central role in our national
fight against coronavirus and the government continues
to back them at this challenging time.
That’s why I announced an extra £3.2 billion of support
for councils to help them to continue their
extraordinary efforts.
Today I’m setting out how the latest £1.6 billion of
this will be allocated to councils in the fairest way
possible, recognising the latest and best assessment of
the pressures they face.
We are backing local district councils and the vast
majority will receive at least £1m in additional
funding.
The government has confirmed the funding will not be
ringfenced, recognising councils are best placed to
decide how to meet pressures in their local area.
The split between county and district authorities will be
65:35. Where there are separate fire authorities, a
specific tier split for fire of 3% will be used.
This funding is part of comprehensive package of support
that has also included allowing councils to defer £2.6
billion in business rates payments to central government
and brought forward £850 million in social care grants
paid to councils from this month.
The Government has today also confirmed that the Review
of Relative Needs and Resource and 75% business rates
retention will no longer be implemented in
2021-22. This will allow councils to focus on
meeting the immediate public health challenge posed by
the pandemic.
The Government will continue to work with councils on the
best approach to the next financial year, including how
to treat accumulated business rates growth and the
approach to the 2021-22 local government finance
settlement.
-
The allocations of this £1.6 billion have been
published on GOV.UK.
-
On 19 March we announced an initial £1.6 billion for
local councils. These funding allocations were based
on a mixture of Adult Social Care Relative Needs
Formulas and Settlement Funding Assessment.
-
On 18 April we announced a further £1.6 billion
funding for local councils. These funding allocations
are based on a per capita basis, and there will be a
65:35 split between county and district authorities.
Where there are separate fire authorities a specific
tier split for fire of 3% will be used.
-
In total we have provided over £3.2 billion to local
councils to reflect expenditure pressures and
potential loss in income.
