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

Housing Options Manager

West Northamptonshire Council
Salary Band 9
What will you be doing?
Recuriter: West Northamptonshire Council

Clinical Practitioner (CYP Mental Health) - (CYP - PT Trainee ASC / LD Modality)

London Borough of Richmond upon Thames and London Borough of Wandsworth
Starting salary of £46,206 per annum
Clinical Practitioner (CYP Mental Healt... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

School Crossing Patrol Officer - Kingston Primary School

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Kingston Primary SchoolPermanent, Part Time£13.00 per hourLocation
Recuriter: Essex County Council

AMHP Senior Social Worker

Essex County Council
£46574 - £56027 per annum
This role involves working a condensed week (37 hours per week across 4 weekdays). There is an expectation that the successful candidate will be base England, Essex, Chelmsford
Recuriter: Essex County Council

Team Manager - Targeted Early Help

London Borough of Richmond upon Thames and London Borough of Wandsworth
£51,540 - £62,451 per annum
Team Manager – Targeted Early Help
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner