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

Head of Communities and Climate Change

High Peak Borough Council and Staffordshire Moorlands District Council
£63,433 to £75,033 per annum
We're looking for an ambitious and strategic leader to join our Alliance Management Team as Head of Communities & Climate Change. Leek, Staffordshire & Other Alliance Locations
Recuriter: High Peak Borough Council and Staffordshire Moorlands District Council

Relief Mobile Cook

North Yorkshire Council
£13.92 to £14.59 per hour
your role will require you to lead and support the team to deliver an effective catering service operating to the highest standards of food safety. Ripon, North Yorkshire
Recuriter: North Yorkshire Council

Business Support Assistant

Essex County Council
Up to £25959.00 per annum
Business Support AssistantFixed Term, Full Time£25,959 Per AnnumLocation
Recuriter: Essex County Council

Business Support Assistant

Essex County Council
Up to £25959.00 per annum
Business Support AssistantFixed Term, Full Time£25,959 Per AnnumLocation
Recuriter: Essex County Council

Specialist Community Public Health Nurse OH (Business Partner)

North Yorkshire Council
£48,738- £53,051 pro rata per annum
This is a unique opportunity to influence strategy, shape service delivery,use your occupational health expertise to improve workforce health Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner