Laura Sharman 17 July 2020

Councils call for clarity on income guarantee

Council leaders have urged the Government to provide further details on the promised compensation for loss of income due to the pandemic.

The Government has announced that councils will be compensated for irrecoverable income losses from sales, fees and charges.

Although councils will have to absorb the first 5% of losses, after that the Government will compensate then for 75p in every pound lost.

Both the County Councils Network (CCN) and the District Councils’ Network (DCN) have called for clarity on the promised income guarantee as soon as possible.

Cllr Sharon Taylor, DCN finance spokesperson, said: ‘District councils’ budgets have been severely impacted by lost income streams, such as car parking, leisure centres, council tax and business rates, and while this additional government support will go some way to plugging these revenue sources, we call on the Government to keep their promise to cover all additional costs incurred in responding to the pandemic.’

Cllr Carl Les, CCN spokesperson for finance, said: ‘We await the publication of the detail for the government’s compensation scheme for lost income in council fees and charges. However it is crucial the government brings forward an ‘income guarantee’ for lost council tax and business rate income, which pose the largest financial risk to councils over the coming period.’

The announcement was made as the Government has confirmed the allocation of £500m extra funding for councils to help meet the cost of dealing with the coronavirus crisis.

The funding will be distributed to councils based on population and levels of deprivation, and how the costs of delivery of services varies across the country.

Councils will also be allowed to spread their tax deficits over three years rather than the usual one year to help limit their cashflow problems.

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

Senior Project Manager (Regeneration)

West Yorkshire Combined Authority
£49,359 to £56,057 per annum (pay award pending) – Grade 9
With ambitious goals ahead, we need dedicated individuals who are ready to make a real impact as part of our expanding Housing team Leeds / Hybrid
Recuriter: West Yorkshire Combined Authority

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerPermanent, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

Information Governance Officer

Essex County Council
£28349.00 - £33351.00 per annum + pension
Information Governance OfficerFixed Term, Full Time£28,349 to £33,351 per annumLocation
Recuriter: Essex County Council

HR Advisor - Pay & Policy (Career Grade)

Wakefield Council
Grade 9 - Grade 10, Career Grade, 24 hours, Permanent
Are you ready to make a difference and shape policies that foster a high performing and inclusive workplace? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Leisure Support Assistant

Wakefield Council
£12,013.50 - £12,202.00, Grade 3, 18.5 hours, Permanent
Are You Ready to Make a Difference in Your Community? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner