Covid-19: Funding for Local Authorities Debate
Full Debate: Read Full DebateDepartment: Department for Levelling Up, Housing & Communities
Peter Aldous
Main Page: Peter Aldous (Conservative - Waveney)Department Debates - View all Peter Aldous's debates with the Department for Levelling Up, Housing & Communities
Covid-19: Funding for Local Authorities
Peter Aldous Excerpts(3 years, 5 months ago)
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Peter Aldous (Waveney) (Con)
It is a pleasure to serve under your chairmanship, Mr Hollobone.
I start by thanking Suffolk County Council and East Suffolk Council for stepping up to the plate to meet the challenges posed by covid-19. I want to highlight the challenges that county councils face, taking into account my role chairing the county all-party parliamentary group. Councils have been on the frontline supporting communities during the pandemic. This has cost money, and the Government have met covid-related costs through four tranches of emergency funding. However, there is uncertainty about the potential costs of the current lockdown, which will not show on the latest local government returns to the Ministry of Housing, Communities and Local Government.
Covid-19 has starkly exposed the fault lines in the funding of county councils and will exacerbate the underlying financial challenges they face in areas such as adult and child social care, special educational needs, highways maintenance and school and bus transport. The County Councils Network’s budget survey of two weeks ago revealed that just one in five of their 35 council members was confident of delivering a balanced budget next year without dramatic reductions to services. In the following year, only one of those councils is confident of doing so.
In the immediate future, county councils are faced with an overbearing and seemingly insoluble dilemma. On the one hand, they will be expected to, and they will, play their role in the covid recovery. On the other hand, they will find that they have even less money to perform this vital task. Two thirds of the funding that county councils receive comes from council tax, and they will thus be exposed to the difficulties in collection that I fear will be inevitable.
The future is both bleak and intimidating for county councils. In the very short term, additional funds are urgently required both tomorrow and in the local government funding settlement that is due next month. Grants should be provided for three years, not one year, so that councils can plan strategically, and more money is needed for special educational needs. In the longer term, we must fix social care, and the Government must carry out the fair funding review.