Laura Sharman 11 February 2021

Four councils get emergency bail out deal from Government

Four councils get emergency bail out deal from Government image

Four councils that are unable to balance their budgets will receive emergency funding from the Government.

The councils - Bexley, Eastbourne, Luton and Peterborough - have been granted the support due to their 'unique circumstances or residual issues'.

The councils have each been awarded a Capitalisation Direction enabling them to borrow in order to fund revenue costs.

Bexley LBC has been issued a capitalisation directive for £3.87m, and will receive just over £6m in grant funding.

Teresa O'Neill, council leader, said: 'The directive is a further tool to help us manage the financial uncertainty the pandemic has created. We will only use it if we need to.'

Luton Council will be allowed to borrow up to £35m and Eastbourne Council will be allowed to borrow £6.8m to fund services this year.

Luton Council leader, cllr Hazel Simmons, said: 'I welcome the exceptional financial support that the Government has agreed to provide to Luton Council which recognises the catastrophic impact of COVID-19 on our airport.'

Peterborough City Council will receive an additional £4.8m and up to £20m for 2021/22 through the Capitalisation Direction.

Cllr John Holdich, leader of Peterborough City Council, said: 'We are delighted with the positive response we have received from MHCLG to our request for exceptional financial support. In allowing us a Capitalisation Direction, they are acknowledging that the council has done everything it can to deliver much-needed services efficiently. This includes the implementation of a financial recovery programme and an extensive review of our services and contracts to ensure they are achieving best value.'

The Isle of Wight Council will receive £50,000 to review the challenges face by the council.

MPs have attacked 'broken' council funding as the settlement for 2021-22 was passed in the House of Commons.

SIGN UP
For your free daily news bulletin
Highways jobs

Social Worker - Adults Social Care

The Royal Borough of Kensington & Chelsea Council
Negotiable
Deliver high-quality mental healthcare and support older adults across our community England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Hospital Discharge Social Worker

The Royal Borough of Kensington & Chelsea Council
Negotiable
Deliver high-quality mental healthcare and support older adults across our community England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Principal Solicitor (Planning Highways and Licensing)

The Royal Borough of Kensington & Chelsea Council
£79605 - £91056 per annum
Provide expert legal leadership on the planning, highways and licensing decisions that shape our borough. As a Principal Lawyer, you'll lead a special England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Principal Highways and Transport Planning Officer

West Northamptonshire Council
£49,587 - £52,860
The Highways and Transport Team delivers essential statutory services relied upon by all residents of West Northamptonshire. Northampton, Northamptonshire
Recuriter: West Northamptonshire Council

Family Hub Business Support Officer

The Royal Borough of Kensington & Chelsea Council
Up to £34359 per annum
Help keep vital family services running smoothly and create a welcoming space for local families.As a Family Hub Business Support Officer, you'll prov England, London, West End
Recuriter: The Royal Borough of Kensington & Chelsea Council
Linkedin Banner