Dan Peters 02 July 2020

Jenrick announces more cash, income compensation and tax delay

Jenrick announces more cash, income compensation and tax delay image

Local government secretary Robert Jenrick has announced more cash and new ways councils will be reimbursed for income lost as a result of coronavirus.

The latest package includes an unringfenced £500m and will allow council and business rates tax deficits to be repaid over three years instead of the usual one, which the Government said would ‘build much-needed breathing space into budgets and limit cash flow pressures’.

Where losses are more than 5% of a council’s planned income from sales, fees and charges, the Ministry of Housing, Communities and Local Government (MHCLG) said it would cover 75p for every pound lost.

MHCLG said the 5% figure accounted for an ‘acceptable level of volatility while shielding authorities from the worst losses’ while covering three-quarters of every pound lost would encourage councils to ‘manage and minimise loss where they can’.

Mr Jenrick said: ‘I know that the loss of revenue from car parks and leisure centres has created huge difficulties so I am introducing a new scheme to help cover these losses.

'This Government will continue to stand shoulder to shoulder with councils and communities as we recover from this pandemic as we renew our commitment to unite and level up the country.’

Local government minister Simon Clarke added: ‘This package will ensure councils have access to vital, additional funding so they can continue to serve their communities as they so admirably have done to date.’

However, MHCLG conceded that councils could still be left with unmanageable pressures and may continue to be concerned about their future financial position, urging any authority that found itself in that position to contact the department.

Director of think-tank NLGN, Adam Lent, said the announcement was 'welcome' but still left councils facing £4bn and rising of extra costs.

For more on this story, visit The MJ (£).

SIGN UP
For your free daily news bulletin
Highways jobs

Social Worker - Children With Disabilities (CWD) - Chelmsford

Essex County Council
£30906 - £42254 per annum + Free Parking & Great Benefits
Please note that this opportunity is NOT OPEN to Newly Qualified Social Workers. In line with the newly created Skills and Capability Framework for England, Essex, Chelmsford
Recuriter: Essex County Council

Economic Data Analyst - SELEP - South East LEP Area

Essex County Council
£30906.0 - £34017 per annum + + Great Benefits Package
Please note that while listed with Chelmsford as the primary location, existing members of the SELEP team reside across Essex, Kent, East Sussex and b England, Essex
Recuriter: Essex County Council

Sector Engagement Lead - SELEP - South East LEP Area

Essex County Council
£39168.0 - £43299 per annum + + Benefits Package
Please note that while listed with Chelmsford as the primary location, existing members of the SELEP team reside across Essex, Kent, East Sussex and b England, Essex
Recuriter: Essex County Council

Director for Adult Health & Social Care

Nottingham City Council
circa £103,000
We are really excited to offer a unique opportunity to join our Leadership Team as our new Director for Adult Health and Social Care Nottingham, Nottinghamshire
Recuriter: Nottingham City Council

Finance Assistant (P2P & Income)

Essex County Council
Negotiable
Job Purpose Purchase to Pay (P2P) and Income aims to provide a comprehensive financial transactional and support service, maximising new and innovat England, Essex, Chelmsford
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue