Commons Sense

House of Commons · Ministers' Questions

Covid-19: Local Authority Income

Monday 11 January 2021 · 2 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • The Government is extending the compensation scheme for lost income due to the pandemic into 2021-22.
  • Councils have already received 528 million under the compensation scheme for income losses.
  • Leisure services are vital for physical and mental health, according to the Minister.

Topics (select to filter)

Questions & Answers

Q1 Ben Spencer Con Runnymede and Weybridge
Local Government
Context

Local authorities are experiencing a reduction in income due to the impact of the COVID-19 outbreak. This question seeks information on government measures to mitigate these financial losses.

Question

What support is the Government providing to help local authorities experiencing a reduction in income as a result of the covid-19 outbreak?

Answer from Luke Hall

We are providing councils with comprehensive support for income lost due to the pandemic. We are extending the existing compensation scheme for lost sales, fees and charges income into 2021-22, and we have already paid councils £528 million under this scheme. We have introduced a local tax guarantee scheme for this financial year that provides 75% of irrecoverable losses in business rates and council tax, worth an estimated £800 million. We are also allowing councils to phase recovery of collection fund deficits over three years.

Answered
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Q2 Ben Spencer Con Runnymede and Weybridge
Housing Mental Health Local Government
Context

The MP appreciates the financial support offered to local authorities but seeks further assistance specifically for Runnymede and Elmbridge borough councils in relation to their individual leisure operator contracts.

Question

I very much welcome the incredible financial support provided to local authorities, particularly through the national leisure recovery fund. Does my hon. Friend agree that supporting council provision of health and leisure centres is vital in helping us to keep healthy and to support our mental wellbeing? Will he look at the situation in my local authorities, Runnymede and Elmbridge borough councils, and their individual leisure operator contracts and according liabilities, where those are in excess of the support provided by the scheme?

Answer from Luke Hall

My hon. Friend is absolutely right. Leisure services play a vital role in helping people to be active, supporting physical and mental health, and bringing a wider range of community and wellbeing benefits. I can confirm that Runnymede and Elmbridge have each lodged an expression of interest as the first necessary step in the application process for the national leisure recovery fund; I believe that they will have submitted their completed applications before the deadline of 15 January. It is also worth noting that councils may be eligible for support from the sales, fees and charges scheme, which was recently extended into the first three months of 2021-22.

Partly answered

Not addressed: The specific issue regarding whether the support provided by the scheme covers their individual liabilities is not directly addressed.

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