My Labour administration supports debt cancellation…as part of a funding solution

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

Preventing a new round of local government austerity

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

Councils could need at least £6 billion more than current government emergency funding

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

MPs join call for £82 billion debt cancellation for crisis-struck local authorities

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

Hackney funding gap could hit services

Public Finance reports that Hackney council has warned that its funding gap could be as high as £19m this year, due to the cost of emergency coronavirus measures. Council forecasts suggest that funding will cover less than half of front-line funding. The borough is expected to receive £17m from thegovernment's emergency support fund, but emergency … Continue reading Hackney funding gap could hit services

Some authorities could become ‘financially unsustainable’ due to pandemic

Public Finance magazine has reported that the leaders of all six Oxfordshire councils have warned that the fallout from the coronavirus pandemic could leave some “financially unsustainable”, and urged the government to provide more funding. The county's council leaders and MPs have written to the government warning that without extra funding to cover shortfalls, authorities … Continue reading Some authorities could become ‘financially unsustainable’ due to pandemic

Five councils start bypassing Care Act duties under pandemic pressures

The government's coronavirus Bill gave local authorities the power to suspend their legal duties to provide social care. The 'easements' to the Care Act 2014 remove the legal duty to meet certain needs unless it would breach human rights to do so. However, concern has been expressed about lack of transparency and the impact on … Continue reading Five councils start bypassing Care Act duties under pandemic pressures

Big losses for District Councils as a result of coronavirus pandemic

The Local Government Chronicle has collected detailed breakdowns of the financial impact of the outbreak from 24 district councils. Although it is only a small proportion of England’s 189 districts, it includes councils from all parts of the country where there is two-tier local government and there is no suggestion the picture is not replicated … Continue reading Big losses for District Councils as a result of coronavirus pandemic