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

Senior Lawyer (Safeguarding Children Team)

Royal Borough of Greenwich
PO6 - £54,267 - £57,402
We are seeking a Senior Lawyers (Safeguarding Children) to join our busy team London (Greater)
Recuriter: Royal Borough of Greenwich

Youth Justice Practitioner

Essex County Council
£38487.0000 - £51834.0000 per annum
Please note that visa sponsorship is not available for this role. Applicants must have a current, unrestricted right to work in the UK.Here in Essex, England, Essex, Epping
Recuriter: Essex County Council

Senior Key Account and Business Growth Manager (CDC)

City Of Doncaster Council
Grade 10 £49,817 - £54,143 per annum
Leading and managing a multi-disciplinary team, the post holder will be responsible for supporting the development and implementation Doncaster, Civic Office/Hybrid 2
Recuriter: City Of Doncaster Council

Exams Officer

City Of Doncaster Council
NJC 12-20 FTE £28,954 - £33,673 / Actual Salary £10,157.98 - £11,813.55
This is an exciting opportunity to join an award winning Multi Academy Trust Doncaster, Bader Academy
Recuriter: City Of Doncaster Council
Linkedin Banner