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Local Government Finance update
29 April 2020
Type
Written Ministerial Statement
Department
Ministry of Housing, Communities and Local Government
At a Glance
Issue Summary
Robert Jenrick (Newark) is providing an update on financial support for UK local governments during the COVID-19 pandemic.
Action Requested
The minister has announced over £3.2 billion in additional funding for councils, without ringfencing but with expected prioritisation towards specific areas impacted by the pandemic. He also outlines measures to provide cashflow support and suspends future reforms until a clearer financial situation is established.
Key Facts
- Over £3.2 billion of additional funding announced for councils.
- Initial £1.6 billion announced on 19 March.
- Further £1.6 billion announced on 18 April.
- Additional allocations made per capita based on ONS population projections.
- Cashflow measures include deferring payment of the central government share of business rates by £2.6 billion and bringing forward social care grants worth £850 million.
- Suspension of the Review of Relative Needs and Resources and increase to 75% business rates retention in 2021-22.
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Assessment & feedback
Summary accuracy