Robert Jenrick has unveiled his “comprehensive package” for local authorities. Councils will get An extra £500 million to cover the costs of responding to coronavirus, andWhere income losses are more than 5% of a council’s planned income from sales, fees and charges, the government will cover 75p in every pound lost. The first thing to … Continue reading “Comprehensive package” – it’s not enough Mr Jenrick
The financial impact of the coronavirus on local authority finances has risen by almost a fifth to £10.9bn in the space of a month, according to new figures from the Local Government Association. An LGA analysis of last month’s council financial returns to the Ministry of Housing, Communities & Local Government found that the gap … Continue reading coronavirus funding gap rises to £7.4 billion
Manchester City Council could be in the “territory” of issuing a section 114 notice by this autumn as it battles a financial shortfall of £133.2m, its treasurer has said. Covid-19 has left the council with £166.9m of reported pressures – predominantly lost income – but has only received £33.7m in additional funding from the Ministry … Continue reading Now Manchester City Council contemplates section 114 notice
Bristol Council Mayor has emailed us. "I have called on national government to underwrite the true costs of the pandemic to local authorities, including lost income. My Labour administration supports debt cancellation, including through the Public Works Loan Board, as part of a funding solution. We have also highlighted changes to the funding formula which … Continue reading My Labour administration supports debt cancellation…as part of a funding solution
Martin Wicks assesses results of the debt cancellation campaign so far and how we can advance it as the financial crisis of local authorities spirals out of control Read on below or download a PDF heredebtcampaignassessmentDownload The financial crisis of local government, precipitated by the pandemic and the lock-down, is rapidly coming to a head. … Continue reading Preventing a new round of local government austerity
The Local Government Association has said that the costs and losses of income in March, April and May are around £3.2 billion. This is the sum in the two tranches of emergency funding given to councils by the government thus far. But councils could need at least £6 billion more to cover the costs of … Continue reading Councils could need at least £6 billion more than current government emergency funding
Claudia Webbe, a signatory of our statement, has gained the support of 27 other MPs, who have written to Chancellor Rishi Sunak, calling on him to cancel local authority debt. Here is her press release. Claudia Webbe, Member of Parliament for Leicester East, with the support of cross party MPs has written to the Chancellor … Continue reading MPs join call for £82 billion debt cancellation for crisis-struck local authorities
Liverpool council is preparing to issue 1 Section 114 notice in June. Faced with a coronavirus 'bill' of £78 million, extra costs and loss of income, the government has provided only £34 million emergency funding. At the same time Liverpool City Region Metro Mayor has estimated that the region will have received less than half … Continue reading Liverpool council facing bankruptcy?