Government confirms allocations of £1.6 billion funding boost for councils

Coronavirus: Most English district councils will receive over £1m each, says MHCLG

Local Government Secretary Robert Jenrick

Local Government Secretary Robert Jenrick

Councils in England have received their funding allocations confirmed following Local Government Secretary’s announcement of £1.6 billion in additional funding.

The Ministry for Housing, Communities and Local Government (MHCLG) said the extra funding is intended to help local authorities continue to deliver frontline services and meet new pressures such as getting rough sleepers off the streets, supporting clinically vulnerable people and providing assistance to the public health workforce.

The funding allocations can be found by clicking here

The £1.6 billion funding means councils in England will be provided with over £3.2 billion to deal with the immediate impacts of coronavirus.

The extra funding will be distributed to councils across England based on their population and the latest assessment on the challenges they are facing.

The split of funding between county and district councils also reflects the financial pressure being felt by councils as a result of residents staying at home, rather than using services including car parks and leisure facilities. 

A majority of district councils will now receive more than £1m of additional funding to ensure they are fully supported.

Local Government Secretary Robert Jenrick said: “Councils are playing a central role in our national fight against coronavirus and the government continues to back them at this challenging time. That’s why I announced an extra £3.2 billion of support for councils to help them to continue their extraordinary efforts.

“The latest £1.6 billion of this will be allocated to councils in the fairest way possible, recognising the latest and best assessment of the pressures they face. We are backing local district councils and a clear majority will receive at least £1m in additional funding.”

The Government has confirmed the funding will not be ringfenced, recognising councils are best placed to decide how to meet pressures in their local area.

The split between county and district authorities will be 65:35. Where there are separate fire authorities, a specific tier split for fire of 3% will be used.

The funding is part of a package of support that has also included allowing councils to defer £2.6 billion in business rates payments to central government and brought forward £850m in social care grants paid to councils from this month.

The Government has also confirmed that the Review of Relative Needs and Resource and 75% business rates retention will no longer be implemented in 2021-22. This will allow councils to focus on meeting the immediate public health challenge posed by the pandemic.

The MHCLG said the Government would continue to work with councils on the best approach to the next financial year, including how to treat accumulated business rates growth and the approach to the 2021-22 local government finance settlement.