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.’

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Elections Officer

Hyndburn Borough Council
£27,711 – £30,060 per annum
Are you an organised and detail-oriented professional with a passion for democracy? Accrington, Lancashire
Recuriter: Hyndburn Borough Council

Economic Development Officer

Hyndburn Borough Council
£36,124 – 37,938 per annum
Hyndburn is an attractive area set in the heart of Pennine Lancashire, within easy reach of Manchester, the lakes and the Coast. Accrington, Lancashire
Recuriter: Hyndburn Borough Council

Public Health Officer

North Yorkshire Council
£41,511 - £45,718 per annum
We are seeking to recruit a Public Health Officer to join our supportive and high achieving public health team at North Yorkshire Council. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Communications Team Leader

Mansfield District Council
£38,626 - £42,708 per annum (pay award pending)
We're looking for a talented Communications Team Leader Mansfield, Nottinghamshire
Recuriter: Mansfield District Council

Principal Housing Enforcement Officer

Durham County Council
Grade 11 £39,513 to £43,693 per annum
We are looking for two experienced housing professionals with the ability to effectively plan and manage a high-volume and complex housing enforcement Seaham
Recuriter: Durham County Council
Linkedin Banner