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Town halls given ‘nowhere near enough’ funding to plug shortfalls caused by Covid-19

TOWN halls are to be given just £500 million to cover income lost as a result of the coronavirus crisis – “nowhere near enough” to plug the gaping financial holes councils face, according to unions.

Local Government Secretary Robert Jenrick said today that the funding, which is not ring-fenced, would bring Covid-19 support to local authorities to £4.3 billion.

But the Chartered Institute of Public Finance and Accountancy (CIPFA) said that councils would still have a £1.2 billion shortfall.

Unison head of local government Jon Richards said: “Council workers are the unsung heroes who’ve been serving communities and keeping us safe throughout the pandemic.

“Local authorities are facing a massive funding gap, coupled with huge holes in their income from taxes, fees and charges because of the virus. 

“But services will be in even greater demand in the coming months as the UK copes with the coronavirus aftershocks.

“Ministers promised that councils would be compensated for shortfalls. This announcement is welcome, but it’s nowhere near enough.”

Shadow communities and local government secretary Steve Reed warned that many councils were “on the brink of bankruptcy” due to the costs of tackling Covid-19.

He said: “This funding is a start, but we don't know how it will be shared out, and much of the detail is being held back until the autumn, which might be too late to save many frontline workers’ jobs that are now at risk.

“We urge the government to stick to its promise to support councils to do what’s necessary to get communities through this.”

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