Heather Jameson 01 July 2020

COVID funding gap hits £7.4bn, LGA estimates

The funding gap created by COVID-19 now stands at £7.4bn, the Local Government Association has said.

Analysis of the June financial returns showed council incurred £4.8bn in extra cost pressures and income losses as a result of the pandemic.

The association now estimates the cost to councils will now reach £10.9bn. After the £3.2bn emergency funding provided by Government, and a further £300m from clinical commissioning groups, it leaves councils with the £7.4bn black hole.

Ministers are working on a ‘comprehensive plan’ to address the funding challenges, which could be announced when communities’ secretary Robert Jenrick speaks to the LGA’s virtual conference tomorrow (Thursday).

Cllr James Jamieson, LGA Chairman, said councils ‘continue to face unsustainable finance pressures’.

‘Further funding and flexibilities are now urgent if councils are to have the certainty they need to avoid taking steps, such as in-year cuts to local services, to cope with funding shortfalls. We are already starting to see this being borne out in towns halls of all political colours across the country.

‘The Government has shown a firm commitment to fully understanding the financial pressures councils are facing as a result of COVID-19 and we are pleased it is working on a comprehensive plan to address these this financial year. We urge the Government to bring forward details as soon as possible.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Parks & Countryside Officer - Maldon District Council

Essex County Council
Up to £13.4500 per hour
Parks & Countryside Officer - Maldon District Council Full-Time, Temporary 36-37 Hours per Week £13.45 PAYE / £17.25 Umbrella Closing Date
Recuriter: Essex County Council

Director of Corporate Services

Powys County Council
£116,572 – £124,881
The Successful candidate will lead major transformation programmes, drive organisational improvement Llandrindod Wells, Powys
Recuriter: Powys County Council

Chief Executive

North Yorkshire Council
£205,749 to £224,986
North Yorkshire Council is seeking an exceptional leader to become our next Chief Executive. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Senior Social Worker - Learning Disability & Autism

Essex County Council
£48205 - £57988 per annum + Flexible Working, Hybrid Working
About the TeamThis is an exciting opportunity for a passionate and experienced Social Worker to join an innovative and award-winning Learning Disabil England, Essex, Harlow
Recuriter: Essex County Council
Linkedin Banner