Commons Sense

House of Commons · Ministers' Questions

Covid-19: Local Authority Funding

Tuesday 28 April 2020 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Government announced over 3.2 billion of new funding to councils for the covid-19 response.
  • The government will stand behind local councils for the resources needed against coronavirus.
  • Further funding will be reviewed and brought forward if needed to ensure local authorities remain supported.

Topics (select to filter)

Questions & Answers

Q1 Toby Perkins Lab Chesterfield
Local Government
Context

Local authorities are struggling with significant expenses related to the ongoing pandemic response, requiring additional financial support beyond existing measures.

Question

What plans does the Government have to provide additional funding to local authorities to replace funds spent on the response to the covid-19 outbreak?

Answer from Robert Jenrick

We have announced over £3.2 billion of new funding to councils, along with £20 billion in business rate support and cashflow grant funding; £12 billion in grants for businesses delivered through councils; £2.6 billion in deferred business rate payments; and £500 million in council tax funds. We will back councils with the financial resources they need as we work together against coronavirus.

Partly answered

Not addressed: The specific ask about plans to replace spent funds was not directly addressed, focusing instead on broad funding announcements without committing to full replacement of expenses incurred by local authorities.

How: Under Review

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Q2 Toby Perkins Lab Chesterfield
Local Government
Context

Councils are concerned about the adequacy of received funds relative to their pandemic response costs, with district councils particularly worried about not receiving a fair share.

Question

The Secretary of State told councils to spend what it takes and expect reimbursement—[Inaudible.] From the money that the Secretary of State announced, they received just £59,000 of his initial £1.6 billion. Will the Government stand behind local councils for all covid-related expenditure? Is there a commitment to ensure smaller councils get a fair share?

Answer from Robert Jenrick

We will stand behind local councils for the resources needed in our national response against coronavirus. We are aware that district councils need a fair share of funding, particularly for initiatives like rough sleeping support. Action will be taken to ensure councils have stable financial footing.

Partly answered

Not addressed: While confirming commitment to reimbursement and equitable distribution, no specific mechanisms or timelines were provided.

How: Under Review

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Q3 Steve Reed Labour (Co-op) Streatham and Croydon North
Local Government
Context

Councils are facing potential budget cuts due to restrictions on going into debt, raising concerns about job losses. The announced funding covers only a fraction of the required costs.

Question

Echoing thanks to all working in local government for their efforts in keeping communities safe during the pandemic. As councils cannot go into debt and face potential billion-pound budget cuts leading to job losses, does the Government reconfirm its original promise to fund whatever is necessary in full?

Answer from Robert Jenrick

We will continue to work closely with councils, providing them with the necessary financial backing. The £3.2 billion additional funding and other support mechanisms are part of this effort. Further funding will be reviewed and brought forward if needed, ensuring local authorities remain supported.

Partly answered

Not addressed: The original commitment to full funding was not explicitly reconfirmed; instead, the response stated that further funding would be reviewed as necessary.

How: Under Review

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