Covid-19: Funding for Local Authorities — [Mr Philip Hollobone in the Chair]

Councils in Staffordshire have received adequate funding from central Government to cover their covid-related losses, but they need more certainty and additional support for council tax collection fund losses, as well as funding to cover the cost of council tax support for people claiming benefits.

Local government funding has been decimated since 2010, with councils losing more than half their budget over the past decade. Leeds City Council faces a current estimated funding gap of £52.5 million for this year and £118 million for next year due to significant extra costs related to covid-19. The council may have to make job cuts of around 800 with the current funding gap, despite doing everything asked of it during the pandemic.

The MP highlighted the urgent need for sustainable core funding for local government in Tower Hamlets, which has the highest rates of child poverty. She emphasized that the borough is experiencing rapid population growth while facing budget reductions, leading to significant challenges such as reduced services and public sector pay freezes.

Council staff have faced significant costs and reductions in income due to the pandemic, with financial commitments from the Government including nearly £5 billion of non-ring-fenced money. Wiltshire Council, a prudent council that balanced its books recently, still faces a budget gap of nearly £30 million despite receiving additional funding. Kruger supports reforming social care financing and highlights Wigan's model of community partnership in delivering frontline services.

Local authorities like Hillingdon Council and Harrow Council have redeployed staff to support vulnerable residents during the pandemic. The challenge is balancing budgets when local authorities cannot borrow for revenue expenditure and funding is not distributed equally across all areas.

The hon. Member thanked the hon. Member for Bethnal Green and Bow for bringing to the House the issue of local government funding during the covid outbreak, highlighting three key performance indicators: providing adequate financial support, equipping local governments with necessary tools, and avoiding creating a further burden on an already overloaded state apparatus. Wakefield Council received £41.52 million to support its efforts in tackling the pandemic, while social care grants of £850 million were paid up front to cover April to June 2020.

The hon. Member commended Wirral Council for its support during the pandemic, including a pay rise for care workers and financial support to residents whose livelihoods were devastated by lockdown restrictions. He noted that local authorities have played a vital role in providing services and advocating for vulnerable people, while expressing concern about future budget cuts and urging the Government to honour its promise of supporting councils.

Council staff in Bradford West have worked tirelessly to manage the pandemic, from minimising infection spread to supporting businesses and essential services. However, local government faces huge challenges due to budget cuts over a decade and the additional pressures of the pandemic. Councils risk being unable to balance their budgets without adequate funding, leading to cuts that will disproportionately affect vulnerable people.

Councils like Stockport Metropolitan Borough Council face significant shortfalls due to the pandemic, exacerbated by a decade of austerity. The council has lost over £100 million since 2010 and now faces additional costs exceeding £6 million from Manchester airport dividends.

County councils have faced significant financial challenges due to the pandemic, with one in five council members confident of delivering a balanced budget next year without drastic service cuts. Councils need additional funds for immediate and strategic planning purposes.

Council staff in York have worked tirelessly during the pandemic, but their efforts must be recognised with a proper pay rise. The city's high rateable values mean it has not received adequate grants from the Government. With 30,000 people working in hospitality, retail and tourism, York is one of the worst affected places economically. Increased demand for domiciliary care due to fears about infection rates in care homes must be met, as charities providing services are already £10 billion in debt. Contact tracing has been effective but requires more funding. City of York Council's investment choices need scrutiny, especially regarding the £35 million spent on a brownfield site and paying out £500,000 to a former chief executive.

The MP thanked local authorities for their work during the pandemic despite a £15 million cut in core funding since 2010. She pointed out that Luton Borough Council had to make emergency cuts of £22 million, risking jobs and non-statutory services. The Local Government Association is calling for an additional £8.7 billion in core funding.

Local authorities are on the frontline fighting the virus but have not received adequate funding from the Government, with Barnsley Council facing a £15 million shortfall despite doing an exceptional job in supporting residents.

Local authorities like Newham have been imaginative in their response to the pandemic, partnering with faith groups for food and care support. The council has spent £25.3 million extra on pandemic-related measures but faces a funding gap of £59.5 million. Families without recourse to public funds face significant challenges, as they do not qualify for universal credit or other safety nets. There is no clear legal basis for supporting single homeless adults without care needs, leading to inconsistent provision across local authorities.

South Lakeland District Council provided significant grants to local businesses during the crisis. However, there were gaps in initial support for small businesses such as bed and breakfast owners and those who missed the payroll cut-off date. The Government should allow councils to extend this help to individuals still without support since March 2020.

Despite initial promises, Bath and North East Somerset Council has faced inconsistent funding from central Government, leading to a £29 million savings target over five years. The council needs support for its financial losses and assistance in maintaining essential services like leisure facilities and street cleaning.

Local authority budgets were in crisis before the pandemic, with Coventry losing £120 million every year since 2010. Youth club closures and refuges shutting down highlight the impact of cuts, while housing waiting lists have grown to 14,000 people in Coventry. The council has been further hit by the pandemic, leading to a need for substantial financial support from the Government.