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Thursday, 14 May 2020

There are calls for the government to do more to help councils avoid bankruptcy.


There are calls for the government to do more to help councils avoid bankruptcy.

Croydon North MP Steve Reed has written to the housing secretary, saying that local authority funding is in a “fragile state”.

He says without government money, “ the heroes we all applaud” will lose their jobs, and councils will be unable to support economies through recovery.

An MHCLG spokesperson said:

"We’re giving councils an unprecedented package of support, including £3.2 billion emergency funding, to tackle the immediate pressures they have told us they’re facing.

“This is on top of English councils' core spending power rising by over £2.9 billion this financial year and this week we announced a further £600 million to help reduce the infection rate in care homes.

“The Government will continue to work closely with councils as the pandemic progresses to develop an ongoing assessment of costs as they support their communities through this national emergency.”

Additional information:

• The package recognises the additional costs and pressures on finances councils are facing as a result of the current crisis. It demonstrates the Government’s commitment to making sure councils,
• including upper and lower tier authorities, have the resources they need to support their communities through this challenging time.
• The second £1.6 billion funding has been allocated based on population to ensure a fair split of funding to local councils and their residents at this difficult time.
• The per capita allocation for the second tranche is a fair and balanced response to the national effort in tacking coronavirus; and there is no evidence to suggest that deprivation drives extra Covid-19 costs.
• It is important to consider the allocation of both £1.6 billion funding allocations together as the additional funding provided to councils.
• The local authority allocations can be found by clicking here.

posted by Radio Jackie News Team @ 7:59 pm  

Top of Radio Jackie News page here.

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