Heather Jameson 01 July 2020

COVID funding gap hits £7.4bn, LGA estimates

The funding gap created by COVID-19 now stands at £7.4bn, the Local Government Association has said.

Analysis of the June financial returns showed council incurred £4.8bn in extra cost pressures and income losses as a result of the pandemic.

The association now estimates the cost to councils will now reach £10.9bn. After the £3.2bn emergency funding provided by Government, and a further £300m from clinical commissioning groups, it leaves councils with the £7.4bn black hole.

Ministers are working on a ‘comprehensive plan’ to address the funding challenges, which could be announced when communities’ secretary Robert Jenrick speaks to the LGA’s virtual conference tomorrow (Thursday).

Cllr James Jamieson, LGA Chairman, said councils ‘continue to face unsustainable finance pressures’.

‘Further funding and flexibilities are now urgent if councils are to have the certainty they need to avoid taking steps, such as in-year cuts to local services, to cope with funding shortfalls. We are already starting to see this being borne out in towns halls of all political colours across the country.

‘The Government has shown a firm commitment to fully understanding the financial pressures councils are facing as a result of COVID-19 and we are pleased it is working on a comprehensive plan to address these this financial year. We urge the Government to bring forward details as soon as possible.’

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Market Quality & Sustainability

Royal Borough of Greenwich
£67,290 - £70,710
Royal Greenwich Integrated Commissioning are looking for a skilled and experienced leader Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Programme Officer - WMF1088e

Westmorland and Furness Council
£35,745 - £36,648
The Capital Programme team is responsible for the core delivery of the Council’s c.£60m/year Capital Programme Cumbria / Countywide
Recuriter: Westmorland and Furness Council

Asylum Lead Officer - WMF1080e

Westmorland and Furness Council
£33,945 - £34,834
Westmorland and Furness Council is committed to supporting asylum seekers Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Locality Officer Level 3 WMF1091e

Westmorland and Furness Council
£32,076 - £33,024
Westmorland and Furness Council is an ambitious authority. Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Head of Commissioning Management

Derbyshire County Council
Grade 15 £59,559 - £65,327
At Derbyshire, we have been on a journey to transform the way we deliver highway services Derbyshire
Recuriter: Derbyshire County Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.