Additional Resources for Local Authorities

Part of 4. Questions to the Minister for Housing and Local Government – in the Senedd at 2:43 pm on 24 June 2020.

Alert me about debates like this

Photo of Julie James Julie James Labour 2:43, 24 June 2020

Yes, absolutely. They've faced an enormous range of both pressures and difficulties in loss of income, as you say, and the loss of income is from a range of things, including fees and charges from simple things like car parks and leisure centres, right up to the loss of non-domestic rates income, council tax income—more people claiming council tax relief scheme moneys, for example—and we've yet to see what happens to the collection rates for council tax. So, we've been working very closely with local authorities at official level, and myself with the leaders, and also with the WLGA. I have very, very frequent meetings with the WLGA and its leadership and its officials to do that. So, for example, right now, we're currently working on a piece that seeks to understand what the impact of the increased demand on the council tax relief fund is and what the collection rates might look like so we that we can start to put in place measures to protect against some of the ramifications of that. 

Right at the beginning of the pandemic, we brought forward the May and June revenue support grant payments, which is a total of £526 million, into April, to support local authorities' cash flow in the initial stages of the pandemic, and they stepped up to that plate, because we didn’t want them to worry about cash flow while they did the right thing, and they've very seriously stepped up to that plate.

The hardship fund provides £110 million for the additional costs, and a further £78 million specifically for loss of income. And we've been providing a series of other moneys into local authorities for some of the initiatives that you mentioned, and, of course, they've still got all the transport grants and all the rest of it that they had in the past.

So, what we've been doing is working very well as a team to understand, right across a range of pressures, what that looks like and to be able to meet those as they come forward, and to work with local authorities in particular, actually, because they've taken on things like test, trace and protect for us and, as you know, they administer the shielded food box scheme for us. And we need to understand how those brilliant things they've done really well with are staffed up as we start to ease the lockdown and staff go back to their normal duties. So, we need to understand the impact of that. So, we’ve worked very closely on that all the way through.