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Coronavirus cash allocations are 'out of date', says IFS

Out of date spending assessments mean councils may not be getting their fair share of cash to deal with the coronavirus crisis, latest figures from the Institute of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

Home Finder Officer

Durham County Council
Grade 7 £30,024 - £33,699
We are looking for a motivated individual to work as part of the Home Finder Service which includes Fostering, Residential and Supported Accomodation, Durham
Recuriter: Durham County Council

Quality Officer

Durham County Council
Grade 7 £30,024 to £33,699 per annum
Are you passionate about driving quality and continuous improvement in employment and skills services? Do you have a keen eye for detail and a proacti Seaham
Recuriter: Durham County Council

Supporting Family Time Worker

Durham County Council
Grade 6 £28,142 - £31,022 pro rata to hours worked
We are pleased to offer an exciting opportunity to appoint a sessional Supporting Family Time Worker to help the team manage the workload of a seven-d Durham
Recuriter: Durham County Council

Health Care and Education Assistant

Durham County Council
£24,796- £25,185 pro rata
Health Care and Education Assistant x2 Grade 2 £24,796- £25,185 pro rata 32.5 hours per week Temporary – required as soon as possible until 31/08/2026 Durham
Recuriter: Durham County Council

Social Work Assistant

Durham County Council
£28,142 - £31,022 pro rata Grade 6
We are looking to appoint a Pemanent 30 hour Social Work Assistant to work within the Dales Locality Team.   The Team provides an effective and effici Durham
Recuriter: Durham County Council
Linkedin Banner