Coronavirus: Councils being pushed towards 'financial failure'
Many councils had precarious finances before the crisis but now face further loss of income and high demand from the community.
Saturday 18 April 2020 14:25, UK
The costs associated with the coronavirus pandemic are pushing many local councils towards "financial failure", it has been warned.
The Local Government Association has called for a "cast-iron" commitment from the government that more funding will be provided to help councils meet extra costs and to compensate for lost income.
The LGA said councils were trying to support communities through the coronavirus pandemic, which has seen more than 15,000 people die across the UK.
But demand for support for the elderly, disabled, homeless, and other vulnerable groups is high, and must be paid for while keeping normal services - such as bin collections - running.
At the same time, many councils have been hit by funding cuts from central government and have seen a drop in the income they usually get from fees and charges for things such as high street car parks, leisure centres and planning services.
The government has given councils £1.6bn to help to help them deal with the COVID-19.
It has also allowed councils to postpone business rates payments to central government and to receive care grants upfront.
But the LGA said, while these measures were helpful, some councils could still be forced to cut services that are vital during the pandemic if they were not given more help.
The LGA has written to Local Government Secretary Robert Jenrick to warn of the situation.
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Councillor Richard Watts, chairman of the LGA's resources board, said: "Local government continues to step up to the unprecedented challenge we face as a nation. It will do everything it can to help residents and businesses but is being stretched to the maximum.
"Many councils are facing increased cost and demand pressures at the same time as seeing a significant drop in income. This is unsustainable and pushing councils towards financial failure.
"It is good that the government has moved to provide some financial help to councils. Additional funding is urgently needed to help councils get through this crisis, support the vulnerable and adapt to life once we defeat this virus when our local services will be needed more than ever to help communities rebuild.
"It would be wrong and unacceptable if councils are then forced to make further cutbacks to the very services that will have helped the nation through this crisis and the key workers who are producing heroics on the front line see their jobs placed at risk."