Heather Jameson 22 May 2020

No bail outs for commercial investments

Plans to bail out councils struggling with their finances could vary between authorities - but they will not cover commercial investments, The MJ understands.

Councils that have been particularly hard hit by a loss of income – such as those with airports – could get bespoke deals to see them through the crisis, under the proposals being considered by central government. However, those authorities which have lost money due to commercial ventures are unlikely to be bailed out.

Others who face a drop in business rates and council tax are likely to share the costs with central government. Proposals for local taxes to be underwritten by the Treasury, as outlined in The MJ last week, appear to be getting some traction with the Ministry of Housing, Communities and Local Government.

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