Councils warn of £ 10 billion black hole as Robert Jenrick pushes £ 500 million more into troubled British local authorities – less than £ 1.5 million apiece – amid fears of bankruptcy
- The local government secretary said that the cash will go to cover lost revenue
- It is part of the £ 4.3 billion support package so far developed by the government
- The councils have warned of facing a black hole of financing up to £ 10 billion
- An already terrible financial situation was worsened by the coronavirus pandemic
Robert Jenrick sparked a discussion with the local government this morning after announcing plans to pump an additional £ 500 million into council coffers today.
The community secretary said that the money would go to cover the loss of income during the coronavirus blockade, which saw companies smeared of giving holidays rates and forcing other income cuts.
It is part of a £ 4.3 billion support package put in place by the government – while councils warn that they face a funding black hole of up to £ 10 billion, with an already terrible financial situation aggravated by the coronavirus pandemic.
The money, which equates to less than £ 1.5 million for each of the 343 local authorities in England – with extra money for those in Scotland and Wales.
It comes after last week the local authorities managed by Tory warned the government to face a possible bankruptcy if a second wave of coronaviruses forced the UK to block again.
Labor Council leader Newcastle’s Nick Forbes turned to Jenrick and Boris Johnson on Twitter, writing: ‘I’m sorry, this £ 500 million isn’t going anywhere to fill the advice of the £ 10 billion funding gap that will face this financial year.
The secretary of the communities said that the money would go to cover the loss of income during the blockade of the coronavirus, which saw the companies smeared, given the holidays of the job rates
Newcastle City Council Labor Leader Nick Forbes addressed Jenrick and Boris Johnson on Twitter
“Up to now we have given you the benefit of the doubt, but our patience is running out a lot.”
Jenrick also announced this morning that the government would help underwrite the losses. Where the council is losing more than 5% of its “sales, commissions and charges” revenue, the government will cover 75 cents of every pound lost.
Congressman Jenrick said: “Councils play a huge role in supporting their communities during this pandemic.
“From supporting the most vulnerable and maintaining vital services to local traceability management, council employees have been at the forefront of this great national effort and are the unsung heroes of this pandemic.
“Today I am providing an additional support package that brings our support for councils during this pandemic to £ 4.3 billion to help cope with the immediate pressure that the councils are facing.
“I know that the loss of parking and leisure center revenue has created enormous difficulties, so I’m introducing a new scheme to help cover those losses.”