Laura Sharman 29 May 2020

Councils will need £6bn to balance budgets this year, says LGA

Councils will need another £6bn to cover the costs and lost income caused by the coronavirus crisis, the Local Government Association (LGA) has warned.

The LGA analysis of May’s returns shows that the emergency funding provided by Government has fully met the extra Covid-19 costs and losses of income over the past three months.

However, councils could need as much as £6bn more to cover the costs of coping with the coronavirus pandemic during this financial year. Nearly two-thirds of this funding would be needed to cover lost income, while the rest would be needed to cover extra cost pressures as a result of the pandemic.

It warned that without knowing when further funding will be received, councils may be forced to make in-year cuts to local services.

Cllr James Jamieson, LGA chairman, said: ‘Concerns remain about the ongoing financial pressures ahead. Councils will need further funding and financial flexibilities in the weeks and months ahead to meet ongoing COVID-19 pressures and to keep services running normally.

’Certainty around this is desperately-needed so councils can balance their budgets this year and take vital decisions about how to pay for vital local services next year.’

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Design Services

Lincolnshire County Council
£77,536 - £83,366
You will lead the delivery of a high-performing Technical Services Partnership (TSP). Lincolnshire
Recuriter: Lincolnshire County Council

Director of Adult Social Care Operations

Manchester City Council
£111,669 – £123,071
Manchester is a city that defines innovation, energy and ambition. Manchester, Greater Manchester
Recuriter: Manchester City Council

Director of Commissioning and Transformation

Manchester City Council
£111,669 – £123,071
Manchester is a city that defines innovation, energy and ambition. Manchester, Greater Manchester
Recuriter: Manchester City Council

Strategic Director of Adult Social Services (DASS)

Manchester City Council
£143,836 – £164,909
Manchester is a city that defines innovation, energy and ambition. Manchester, Greater Manchester
Recuriter: Manchester City Council

Chief of Staff

Borough Council of King's Lynn and West Norfolk
up to £126,615
We’re transforming services with ambition and community at the heart of our work. Norfolk
Recuriter: Borough Council of King's Lynn and West Norfolk
Linkedin Banner