Heather Jameson 14 April 2020

Coronavirus cash allocations are 'out of date', says IFS

Out of date spending assessments mean councils may not be getting their fair share of cash to deal with the coronavirus crisis, latest figures from the Institute of Fiscal Studies have revealed.

The £1.6bn provided to help local authorities deal with COVID-19 are based on spending needs assessments from 2013-14 and fail to take account of confirmed coronavirus cases.

IFS associate director, David Phillips, found large differences in allocations around the country, and variations in how the spending and demographics have changed in the past seven years.

Mr Phillips acknowledged the emergency funding was a ‘near impossible task’ given the speed at which allocations had to be made. ‘The Government has therefore had to make use of the rough proxies already available to it.’

But he said future funding could be better. ‘Rather than try to allocate all of the funding in advance, it [the Government] could loosen the rules to allow councils to borrow to fund day-to-day spending linked to the coronavirus pandemic, allowing them to respond rapidly in a manner they see fit.

‘The Government could then reimburse councils at a later date once it has a better idea of what the impact of the coronavirus has been in different parts of the country and is able to apply proper financial safeguards.’

Central Government has already reassured councils that there will be additional funding, but as yet has given no further detail.

The report found allocations per resident ranged from £15 in Wokingham to £45 in Knowsley, with London and home counties receiving less in general than more deprived area.

District councils are set to receive an average of 45p per resident, despite their responsibilities for services like homelessness, environmental health and cemeteries and crematoriums.  

Chartered Institute of Public Finance and Accountancy (CIPFA) local government policy manager, Joanne Pitt said: ‘CIPFA recognises and welcomes the additional funding announced by the government at this very difficult time.

‘But this IFS analysis raises several valid questions around the allocation of COVID-19 funding, and following local government secretary Robert Jenrick's previous statements, it is important that the sector remains confident it will be fully reimbursed for crisis-related spend.’

SIGN UP
For your free daily news bulletin
Highways jobs

Assistant Director for Estate Strategy and Development  

Derbyshire County Council
£71,202 - £77,495 per annum
We are seeking an ambitious and strategic leader to join our senior management team as Assistant Director for Estate Strategy & Development. Matlock, Derbyshire
Recuriter: Derbyshire County Council

Information Governance Officer

Essex County Council
£29432.0000 - £34519.0000 per annum
Information Governance OfficerFixed Term, Full Time£29,342 to £34,519 per annumLocation
Recuriter: Essex County Council

ESCA Development Assistant

Essex County Council
£25959.0000 - £27613.0000 per annum
ESCA Development AssistantFixed Term, Full Time£25,959 to £27,613 per annumLocation
Recuriter: Essex County Council

Closed Landfill Site Operative

Essex County Council
£25959.00 - £28621.00 per annum
Closed Landfill Site OperativeFixed Term, Full Time£25,959 up to £28,621 per annum Location
Recuriter: Essex County Council

Apprentice Admin Assistant

Durham County Council
£8 per hour
Apprentice Admin Assistant Apprentice £8 per hour. Temporary contract for approx. 18 months Full Time, Term Time Only, Required to start September 202 Durham
Recuriter: Durham County Council
Linkedin Banner