Support 100 years of independent journalism.

  1. Science & Tech
  2. Coronavirus
27 April 2020updated 06 Oct 2020 9:45am

Councils face £9.6bn shortfall from coronavirus crisis, local authority leaders warn

By Samuel Horti

The coronavirus crisis will leave councils with a funding shortfall of up to £9.6bn, and some are considering freezing essential services as their cash reserves run out, local authority leaders have said.

James Jamieson, chairman of the Local Government Association (LGA), also told MPs on the Housing, Communities and Local Government Committee that increased spending and reduced commercial incomes might leave councils needing a bail out quadruple the size of the £3.2bn already pledged by government. 

“We need the cast iron guarantee that we will be funded to the amount we are delivering to our communities,” Jamieson said.

The shortfall figures come from an LGA survey carried out this month, which 98 per cent of councils responded to.

Sign up for The New Statesman’s newsletters Tick the boxes of the newsletters you would like to receive. Quick and essential guide to domestic and global politics from the New Statesman's politics team. The New Statesman’s global affairs newsletter, every Monday and Friday. The best of the New Statesman, delivered to your inbox every weekday morning. A handy, three-minute glance at the week ahead in companies, markets, regulation and investment, landing in your inbox every Monday morning. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A weekly dig into the New Statesman’s archive of over 100 years of stellar and influential journalism, sent each Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy