More than £730 million in vital EU cash – which could help local communities bounce back from COVID-19 – risks going unspent and being sent back to Brussels if the funding is not allocated by the Government before the end of the year, the LGA has warned.
The Government’s funding package for councils offers some positive measures and recognises the pressures they are facing, but more is needed.
Further funding and financial flexibilities are needed to avoid in-year cuts to vital local services during the pandemic.
Local government faces “unsustainable” financial pressures as the sector continues to lead efforts to beat the coronavirus pandemic, the LGA has warned.
An extra £30 billion of public spending was announced in last month’s Budget – much of it aimed at local priorities including homes, roads, digital connectivity, flood resilience and devolution.
Councils in England will receive a further £1.6 billion for their response to the coronavirus, taking total funding from government for the pandemic to more than £3.2 billion.
Councils have been working ‘at pace’ to identify and contact eligible businesses to support them to apply for government funding since 1 April, and continue to distribute the cash as quickly as possible.
Some local authorities in England have invested an estimated £6.6 billion in buying commercial property over the past three years, mostly with the aim of generating a financial return, according to the National Audit Office.
Based on feedback from councils, the LGA’s Budget submission focuses on getting the right funding to improve services and people’s lives through public service reform.