Coronavirus: Further £10bn wanted to plug funding hole, say councils

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Coronavirus: Further £10bn wanted to plug funding hole, say councils

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A further £10.1bn is required yearly to assist native authorities in England plug funding gaps and enhance providers, council leaders say.

The Native Authorities Affiliation mentioned the determine included greater than £5bn to make sure councils can keep providers at present ranges, amid uncertainty attributable to coronavirus.

It mentioned £1.9bn was wanted for elevated demand in areas akin to homelessness.

It got here as the federal government geared as much as set budgets for the approaching years.

The figures have been included within the Native Authorities Affiliation’s submission to the excellent spending assessment, which establishes the form of presidency funding.

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Chair of the affiliation, Cllr James Jamieson, mentioned the assessment would “form the route of this nation for years to come back” including “securing the speedy and long-term sustainability of native providers should be the highest precedence”.

“With the fitting funding and freedoms, councils can enhance the lives of their residents, handle the stark inequalities the pandemic has uncovered, develop a inexperienced restoration, handle abilities gaps and rebuild the economic system in order that it advantages everybody.”

The LGA, which represents councils in England in addition to the London boroughs, urged Chancellor Rishi Sunak to supply the extra core funding to councils in England by 2023-24.

It mentioned the £5.3bn was wanted to make up funding gaps and allow councils to keep up providers – and warned this determine might double as a consequence of uncertainty attributable to the pandemic.

A complete of £1.9bn would go in direction of providers struggling underneath elevated demand, akin to kids’s social care and homelessness.

And an extra £2.9bn would allow councils to “play a number one position in serving to communities get better and rebuild after the pandemic”, the LGA mentioned. This would come with funding in reforming grownup social care pay, boosting connectivity and bettering parks.

The pandemic has elevated the monetary stress on councils as demand for his or her providers akin to social care develop, whereas revenue from native taxation and expenses has fallen.

Earlier this yr among the largest councils warned they might face chapter with out monetary help.

Throughout March and April 2020, the federal government supplied £3.2bn to councils in emergency funding to assist take care of the coronavirus pandemic.



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