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Additional support to help a small number of councils
The Ministry of Housing, Communities & Local Government has announced details of additional support to a small number of councils who are unable to balance their budgets for 2020-21 or 2021-22.
Local Government Secretary Robert Jenrick said that this support is being provided on an exceptional basis and the decision to grant these requests follows a robust and challenging process to confirm that councils have taken all reasonable steps to manage pressures locally.
The councils, not named in the government announcement, will now need to undertake an independent assurance review focused on the council’s current financial position, sustainability and their ability to meet any of the identified budget gaps for 2021-22 without additional recourse to government.
It has been reported that the councils involved are Eastbourne, Bexley, Luton and Peterborough.
Analysis last year revealed the scale of the problems facing local councils, with nearly 150 authorities forecasting a combined budget shortfall of at least £3.2 billion.
The government has also announced a £50,000 fund for the Isle of Wight, which will be used to review the challenges face by the council, residents and businesses on the island who are separated from the mainland. This could include access to vital services, supplies and employment.
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