MHCLG announces £1.6 billion for councils

Last week I wrote about the allocation of emergency Covid-19 funding to councils. Since then, the issue has remained high-profile, with councils highlighting the pressures that they face.

Today Robert Jenrick, Secretary of State at the Ministry of Housing, Communities and Local Government (MHCLG) announced a further £1.6 billion in funding for councils. This doubles the support previously announced, and was accompanied by a letter from the Communities Secretary to Council Leaders and Chief Executives praising the actions of councils and their workforce: "the unsung heroes as we tackle this virus."

This follows the government's earlier announcement that it was bringing forward £850 million in social care payments, and deferring councils' payments of £2.6 billion to central government relating to business rates. These are, however, timing differences in payments to assist cash flow; the £1.6 billion is additional money.

The sector, including the County Councils Network, has welcomed the announcement, while urging that, with major uncertainties regarding both revenues and expenditures, the need for support to councils must be kept under review. It is not yet clear how the funding will be allocated between councils; the MHCLG announcement says this will be communicated "as soon as practicable."