Commons Sense

House of Commons · Ministers' Questions

Covid-19: Support for Local Authorities

Tuesday 7 July 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 3 Partly answered 0 Not answered 0

Key points

  • Ministerial reassurance provided that support addresses varied needs of local authorities.
  • Commercial income losses due to investments are not fully covered in the announced package.
  • Minister reaffirms pledge of full support and mentions additional funding for infection control.

Topics (select to filter)

Questions & Answers

Q1 Gareth Bacon Con Broachfield
Local Government
Context

Concerns about differential treatment of councils based on financial management and the need for capitalisation directives.

Question

Fears have been expressed that poorly managed local authorities will be bailed out fully, while better-managed ones like Bromley may face shortfalls. Will the Minister reassure that support addresses varied needs? If funding gaps remain, will he consider allowing councils to fund through borrowing or capital receipts?

Answer from The Chancellor of the Duchy of Lancaster and Cabinet Secretary (Steve Barclay)

We have always taken the approach that borrowing is allowed for infrastructure and capital projects, but not day-to-day revenue. All councils have received support, including £16 million to Bromley. We are addressing varied needs with a comprehensive package.

Answered
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Q2 Meg Hillier Labour (Co-op) Hackney South and Shoreditch
Economy Local Government
Context

Commercial investments made by councils to fund services are suffering losses due to the pandemic.

Question

Local government has invested in commercial ventures to fund services. The package announced does not cover shortfall from these investments, which is affecting many local authorities severely. Will the Minister see to it that support covers this loss?

Answer from The Chancellor of the Duchy of Lancaster and Cabinet Secretary (Steve Barclay)

Commercial income carries risk for councils, we are aware. I advise councils at risk of section 114 notices to talk with the Housing Minister before making such decisions.

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Q3 Dan Carden Lab Liverpool, Walton
Housing Local Government
Context

Councils need certainty in terms of funding for the pandemic. There is a one-size-fits-all approach which may not work.

Question

The Prime Minister and Housing Minister have promised full support. Will the Minister reaffirm that pledge? Many councils are cutting services due to uncertainty over costs. Will he further commit to covering financial cost and social need for local authorities?

Answer from The Chancellor of the Duchy of Lancaster and Cabinet Secretary (Steve Barclay)

Costs for local councils will be uncertain due to lost tax income. We have addressed short-term pressure with £3.7 billion grant and additional funding, including £600 million for infection control.

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