LGA responds to IFS report on coronavirus impact on council finances

"Emergency government funding provided to councils has helped them in dealing with the impact of COVID-19 in recent months. Further funding and financial flexibilities are now needed to help councils meet a shortfall which we estimate could reach at least a further £6 billion this year."


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Responding to an Institute for Fiscal Studies report on the financial risks facing councils as a result of the impact of coronavirus, Cllr Richard Watts, Chair of the Local Government Association’s Resources Board, said:

“Councils across the country are leading efforts to support communities through the unprecedented coronavirus crisis we face. They continue to do an amazing job.

“Emergency government funding provided to councils has helped them in dealing with the impact of COVID-19 in recent months. Further funding and financial flexibilities are now needed to help councils meet a shortfall which we estimate could reach at least a further £6 billion this year.

“We are pleased that the Government has indicated it is working on a comprehensive plan to address the ongoing financial challenges councils face this financial year as they lead communities through the pandemic. We urge the Government to bring forward details of this plan as soon as possible.

“This is vital if councils are to avoid taking measures, such as in-year cuts to local services, to cope with funding shortfalls and meet the legal duty to balance their budgets.”