Dan Peters 27 April 2020

Councils need another £12.8bn to cope with coronavirus - LGA

Councils may need up to another £12.8bn from the Government to get through the coronavirus crisis, the chairman of the Local Government Association (LGA) has suggested.

Giving evidence to the Housing, Communities and Local Government Committee today, Cllr James Jamieson said the £3.2bn given by Whitehall so far had given councils ‘breathing space’.

However, he added that, based on preliminary analysis of information provided by councils, the sector could need ‘three or four times’ the amount given so far.

The comments came as the Ministry of Housing, Communities and Local Government (MHCLG) refused to offer the sector a ‘cast-iron public commitment’ that it will fully meet extra costs to councils and compensate for lost income in order to avoid the issuing of Section 114s.

Early announcements by ministers had told councils to spend whatever it takes and suggested that they would be compensated for additional costs.

Ministers made it clear that they do not want local government to fail due to reduced cash flow or short-term budget pressures caused by COVID-19, but have not yet published plans for how they will fully support budgets for the current financial year.

And a shift in tone in a recent meeting with local government secretary Robert Jenrick rocked the sector’s confidence.

The LGA has demanded a ‘rock-solid’ written commitment for the Government to cover all extra costs incurred by councils but asked by The MJ to give one, an MHCLG spokesman said: ‘We have nothing to add at this stage.’ 

In a letter seen by The MJ to chancellor Rishi Sunak, District Councils’ Network chairman, Cllr John Fuller, wrote: ‘Further support will be critical to support services and to avoid s114s being issued by district councils in the weeks and months ahead.’

SIGN UP
For your free daily news bulletin
Highways jobs

Customer Payment Solutions Lead (Business Support) - EFDC

Essex County Council
Up to £15.0000 per hour
Customer Payment Solutions Lead (Business Support) - Epping Forest District Council 30 Hours per Week Part-Time, Temporary Up to 11 Month Contract£15 England, Essex
Recuriter: Essex County Council

Targeted Youth Advisor

Essex County Council
£28514.00 - £33545.00 per annum
Targeted Youth AdvisorPermanent, Full Time£28,514 to £33,545 per annumLocation
Recuriter: Essex County Council

Part Time Business Operations Assistant - ACL

Essex County Council
Up to £25081.00 per annum + Pro Rata
Part Time Business Operations Assistant - ACLPermanent, Part Time£25,081 per annumLocation
Recuriter: Essex County Council

Multi Therapy Assistant

London Borough of Richmond upon Thames and London Borough of Wandsworth
£35,391 - £42,888 per annum
Multi Therapy Assistant£35,391 - �... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Part Time Business Operations Assistant - ACL

Essex County Council
Up to £25081.00 per annum + Pro Rata
Part Time Business Operations Assistant - ACLPermanent, Part Time£25,081 per annum, full time equivalentLocation
Recuriter: Essex County Council
Linkedin Banner