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PA Media
The most recent tranche of emergency coronavirus funding for councils in England is to be allotted “within the fairest means potential”, ministers say.
County councils will get 65% of the £1.6bn pot and district councils 35%, based mostly on inhabitants dimension and native authorities’ particular wants.
Not one of the cash will probably be ring-fenced, with councils in a position to spend it as they see match to deal with particular pressures.
A assessment of general future funding due subsequent 12 months has additionally been placed on maintain.
Previous to Tuesday’s announcement, county councils had referred to as for his or her social care budgets to be prioritised and warned of “unpalatable” choices if an estimated £1bn in additional prices brought on by the pandemic weren’t met.
The BBC’s political correspondent Alex Forsyth mentioned the monetary state of affairs going through councils was “very tight”.
The truth that no cash was being assured for look after the aged, she added, was more likely to dismay care suppliers who’re apprehensive the funding will not get by means of to them.
The federal government mentioned the £1.6bn pot – a part of an general £3.2bn package deal of emergency help introduced this month – can be shared on the premise of an up-to-date evaluation of the monetary challenges going through councils.
The help for district councils is barely greater than anticipated, reflecting the disproportionate impact the lockdown is having on their budgets by way of lowered earnings from parking costs and leisure services.
As a part of the breakdown, nearly all of the 192 district councils in England will obtain greater than £1m, which the federal government says will allow very important frontline providers for the weak and homeless to be protected.
“Councils are taking part in a central position in our nationwide struggle in opposition to coronavirus and the federal government continues to again them at this difficult time,” Communities Secretary Robert Jenrick mentioned.
He mentioned he was setting out “how the most recent £1.6bn of this will probably be allotted to councils within the fairest means potential, recognising the most recent and finest evaluation of the pressures they face”.
‘Pivotal position’
To additional ease the stress on councils, a assessment of their present assets and future wants designed to find out modifications to baseline funding subsequent 12 months, won’t go forward.
Neither will a shake-up of enterprise charges which might have seen the quantity of charge earnings councils retain from Excessive Road outlets – lots of which are actually closed – rising from 50% to 75% in return for grants being phased out.
The physique representing district councils mentioned the bulletins “might imply a really welcome half a billion kilos of funding certainty for district councils on the entrance line over two years delivering these ultimate mile providers”.
“This reveals authorities recognises the unimaginable work of districts in supporting each household and enterprise and the pivotal position they’ll play combating this virus and main the native restoration,” mentioned its chair John Fuller.
Ministers say they’ve acted swiftly and decisively to assist councils take care of the disaster, together with bringing ahead £850m in social care grants and permitting city halls to defer £2.6bn in enterprise charge funds.
However council leaders have warned that billions extra in monetary help could also be wanted to avert potential bankruptcies and have referred to as for all losses of earnings because of the pandemic to be under-written by authorities.