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Covid-19: Local Authority Support

Volume 675: debated on Tuesday 28 April 2020

What steps he is taking to regularly assess the adequacy of support for local authorities during the covid-19 outbreak. (901982)

What steps he is taking to regularly assess the adequacy of support for local authorities during the covid-19 outbreak. (901988)

I express once again my gratitude and admiration and that of my right hon. Friend the Secretary of State for the vital work that councils are doing. We have been in constant contact with councils up and down the country from Cornwall to Cumbria to listen to their concerns. As I have said, more than £3.2 billion demonstrates our very real support for that sector.

District councils face an acute cash flow problem in the next few months as normal revenue streams have dried up. Although, as the Minister has outlined, there is plenty of financial support available from the Government, has the Department considered, as North East Derbyshire District Council and the District Councils’ Network have suggested, providing more flexibility and innovative approaches to short and medium-term borrowing?

As with unitary authorities or county councils, I assure my hon. Friend that we are committed to ensuring that councils, including district councils, are supported. My hon. Friend the Minister for Regional Growth and Local Government holds regular talks with the District Councils’ Network. Indeed, he had a call with them just yesterday. As I have said, councils will be able to defer £2.6 billion of payments they are due to make to central Government over the next three months. With that support, district councils are ensuring that vulnerable people receive the care that they need and deserve. I am impressed by the work of North East Derbyshire District Council, among others, to pay grants to small businesses.

Will my right hon. Friend join me in again praising the excellent work of Buckinghamshire Council during the covid-19 crisis? As my hon. Friend the Member for Buckingham (Greg Smith) said, we now have a unitary authority. What financial assurances can my right hon. Friend give Buckinghamshire Council, given the reduction in our income and the increase in our statutory duties associated with covid-19?

In addition to the points I made to my hon. Friend the Member for Buckingham (Greg Smith), I emphasise that authorities up and down the country, including Buckinghamshire Council, are performing admirably by supporting businesses, charities and the most vulnerable in society. As I set out in my earlier answer, I am happy to say that Buckinghamshire Council received more than £10 million from the first tranche of funding, which was paid on 27 March, and it will receive further support from the second tranche, for which allocations will be announced imminently. I assure my hon. Friend that we will continue to work with councils such as hers over the coming weeks to ensure that they are managing as the pandemic progresses.