Thank you for contacting me about funding for local authorities during the coronavirus outbreak.
Local authorities have been at the forefront of the response to the coronavirus outbreak in our communities where the most vulnerable and deprived have been particularly at risk. The spread of the virus has placed unprecedented demands on local services and I am proud of our key and public sector workers in Calder Valley.
Significant additional funding has been provided to local authorities to support them as they respond to the outbreak. Over £9 billion in funding has been made available for councils to relieve local pressures and help vulnerable people. This includes £4.6 billion in un-ringfenced funding, £1.1 billion for care homes, £300 million to support Test and Trace as well as funding allocated to councils from the Local Alert Level system and a number of grants to support communities and vulnerable people.
I welcome that in 2021-22, local government will on average see a cash terms increase of up to 4.6 per cent in Core Spending Power – a real-terms increase. This is in line with last year’s increase and recognises the resources councils need to meet their pressures and maintain current service levels. Separately, over £3 billion additional funding is being provided, which includes £1.55 billion for service pressures, £670 million for council tax support and £762 million to compensate lost tax revenue.
Funding to address homelessness and rough sleeping is being raised to over £750 million, alongside £1.3 billion toward adult and children's social care. £220 million is being allocated to the Community Renewal Fund to support communities pilot new programmes and approaches before the introduction of the Shared Prosperity Fund. As part of the Towns Fund, over £2.4 billion has been committed to 101 Town Deals. I am confident that these measures will provide local communities with the resources they need to recover from the outbreak and to build back better.
I know that many councils are worried about what lies in the future. The Government has asked local councils to approach the Ministry of Housing, Communities and Local Government if they are experiencing unmanageable pressures or concerned about their financial position. To help councils through the worst of the crisis, a compensation scheme was put in place. The income recovery scheme covered local council losses over 5 per cent of planned income at a rate of 75p for every pound, encouraging councils to minimise losses where they can and providing certainty where needed. On top of this, a phased repayment of council tax and business rates deficits over three years rather than one has been announced.
Local councils not distributing grant funding
I am aware of reports that there have been issues with local authorities releasing grant funding, specifically with regards to the Additional Restrictions Grant and the Restart Grants. It is up to local councils to distribute the funding, and I know that Ministers have encouraged local authorities to get grant funding to businesses in good time. If you have any further concerns it may be best to contact your local council directly for clarification.
Redundancies and layoffs in local public sector
I realise that in local government layoffs can have a real impact on the quality and provision of vital local services. It is a disheartening situation to be in and I know many families are having to make difficult choices as a result of being left without work. Over £9 billion has been allocated directly to councils since the start of the pandemic. On top of this, £3 billion in additional support for coronavirus is being given to councils in 2021-22, taking the total support committed to councils in England to tackle the impacts of coronavirus to over £12 billion. I do hope that this substantial support will help prevent cuts from having to take place.
Thank you again for taking the time to contact me.
Craig Whittaker MP
July 2021