Heather Jameson 01 July 2020

COVID funding gap hits £7.4bn, LGA estimates

COVID funding gap hits £7.4bn, LGA estimates image

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.’

Participatory budgeting image

Participatory budgeting

Evgeny Barkov explains what participatory budgeting means and how it can reveal what citizens need.
SIGN UP
For your free daily news bulletin
Highways jobs

Occupational Therapist

Brent Council
£29,766 - £30,711
We are particularly interested in... Redbridge, London (Greater)
Recuriter: Brent Council

Communications Manager

Camden London Borough Council
£40,829 – £47,360
We are looking for an experienced Communications Manager to provide strategic communications to support our... Camden, London (Greater)
Recuriter: Camden London Borough Council

Property Administrator

Camden London Borough Council
£28,573 - £30,808
To succeed, you will contribute to the pro-active provision of a full office management function. Camden, London (Greater)
Recuriter: Camden London Borough Council

Senior Practitioner - Family Support & Protection - Chelmsford

Essex County Council
£39168.0 - £47405.0 per annum + Plus Excellent Benefits Package
The Senior Practitioner is responsible for the management of their own cases and support of social work staff in the management of complex Child Protection and Child in Need Cases, or Children Looked After. England, Essex, Chelmsford
Recuriter: Essex County Council

Advanced Skills Worker - Longwood Place

Essex County Council
£26801 - £30906 per annum
This is a part time role for 21 hours a week.Interviews will take place via video calling.Essex County Council (ECC) is one of the largest and most dy England, Essex
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue