Coronavirus: Councils given £1.6bn funding boost after fears of service cuts

‘Up and down the country council workers are the unsung heroes as we tackle this virus,’ says minister

Councils across England will be given be given an additional £1.6bn in funding to deal with the coronavirus crisis, Local Government Secretary Robert Jenrick has announced, after a warning many faced financial failure if they had to shoulder the burden.

The cash injection doubles the funding available to councils in England to deal with the effects of the crisis, after £1.6bn was announced earlier this year. The extra cash will help councils deal with the immediate impact of the pandemic, including helping rough sleepers off the streets and schemes to assist extremely vulnerable people shielded in their own homes.

The Local Government Information Unit think tank has warned that councils will “fail in large numbers” unless ministers made good on his earlier promise to “do whatever is necessary” to support them.

As he sought to head off a damaging row with local authorities, Mr Jenrick praised them as “unsung heroes” in the fight against Covid-19.

Announcing the extra money, Mr Jenrick said it would help protect vital services.

“We stand shoulder to shoulder with local government and my priority is to make sure they are supported so they can continue to support their communities through this challenging time,” he said.

“Up and down the country council workers are the unsung heroes as we tackle this virus. They are in the front line of the national effort to keep the public safe and deliver the services people need. Never has this been more important and we are all rightly grateful for everything that they are doing."

The announcement will also see an extra £155 million for councils in Scotland, £95 million for Wales and £50 million for Northern Ireland.

Lockdown measures introduced by the government have seen town hall revenues from sources like leisure centres nosedive.

Councils will also be allowed to defer £2.6bn in payments to central government.

Another £850m in social care grants will be paid up front this month in a move designed to help ease immediate pressures on local authority cash flows.

The announcement stops short of a call by the Local Government Association for ministers to offer a “cast-iron public commitment” that central government will pick up the full coronavirus-related bill, however.