Covid-19 Local Authority Shortfalls 2020-04-28
2020-04-28
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Response quality
Questions & Answers
Q1
Partial Answer
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Context
Local authorities face financial pressures due to additional expenditure, loss of budgeted income, and inability to deliver planned savings as a result of the pandemic.
What estimate does he have of shortfalls in funding for local authorities as a result of (a) additional expenditure, (b) loss of budgeted income and (c) inability to deliver planned savings during the covid-19 outbreak?
The Department is working closely with the sector to ensure that we have a well-rounded understanding of the impacts of covid-19 on its finances and capacity. We have already announced a significant package of additional funding worth over £3.2 billion, alongside introducing several other measures to support immediate cash flow concerns.
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Assessment & feedback
Did not provide specific estimates for financial shortfalls under different categories
Response accuracy
Q2
Direct Answer
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Context
Buckinghamshire Council, which came together as a new unitary on April 1, faces potential financial pressure of £22.5 million over three months and £67 million if the crisis extends to a year.
To reflect a local concern, Buckinghamshire Council came together as a new unitary only on 1 April, and it estimates, from lost income streams and an inability to deliver the savings planned as it put those five councils into one, potential pressure of £22.5 million over three months and £67 million if the crisis extends to a year. Will my right hon. Friend give me an assurance that the Department is working with all councils to ensure that costs are fully met?
I echo my hon. Friend's tribute to Buckinghamshire Council. To date, it has received £10.6 million of additional funding to support its response to covid-19 and it will receive further support from a second tranche of funding, as will other local authorities, for which allocations will be announced imminently. This month, Buckinghamshire will also receive an up-front payment of three months of social care grants, totalling £3.4 million. We are also deferring three months of the council's payments to Government under the business rate retention scheme between April and June, which is worth £25 million.
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Assessment & feedback
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Response accuracy