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

Armed Forces Commissioner

Ministry of Defence
£170,000 per annum
This is a unique opportunity to serve as the independent champion for Service personnel London (Greater)
Recuriter: Ministry of Defence

Executive Director Finance, Governance and Assets (s151)

East Surrey
£153,592 - £168,952
Local government in Surrey is being reshaped for the first time in more than 50 years. East Surrey
Recuriter: East Surrey

Transport Planning Officer Policy

Brighton & Hove City Council
£35,570 - £40,444
We are seeking candidates with experience of working in transport and an interest in developing policies and transport schemes... Hove Town Hall, Norton Road, Hove, BN3 3BQ
Recuriter: Brighton & Hove City Council

Social Work Consultant

Durham County Council
Grade 13 £48,738 - £53,051
Are you passionate about working with children and families?   This could be the post for you!   WHAT IS INVOLVED?  As Social Work Consultant you will Newton Aycliffe
Recuriter: Durham County Council

Missing Children Coordinator

Durham County Council
Grade 7 £31,015 - £34,811
Are you passionate about improving outcomes for vulnerable children and young people? Do you have experience working with children who go missing, exp Durham
Recuriter: Durham County Council
Linkedin Banner