‘WE NEED MORE HELP’
12 North East councils make joint plea to PM for extra cash to cope with Covid-19 crisis
We cannot do this alone and will need ongoing Government support
Coun Simon Henig
ALL 12 North East councils have written a joint letter to the Prime Minister calling for more support to cover their financial pressures and help them through the coronavirus crisis.
The letter, sent by Coun Simon Henig on behalf the Association of North East Councils (ANEC), outlines some of the measures which would help ease the pressure on authorities now and in the future.
Coun Henig, chairman of ANEC and leader of Durham County Council, says while council leaders in the region welcome the initial Government funding they have received they warn much more is needed given the scale of the short-term pressures and the costs associated with longer term recovery.
He said in the letter: “It is extremely important I set out a number of issues and areas for consideration which if not addressed will undoubtedly impact on our ongoing efforts to shape and lead the recovery essential to reinvigorating and regenerating our local economy and communities.
“We are very clear we see local government leading place-based recovery across the North East. “We cannot do this alone and will need ongoing Government support for the financial pressures we are facing.” Some of the difficulties facing local authorities in the short term include the additional cost of the support effort, including helping care homes and other care settings, the cost of providing PPE and supporting suppliers.
Authorities are also facing significant reductions in revenue because of lower levels of council tax income, the closure of buildings and facilities, a reduction in car parking income and regional and local transport pressures arising from reduced passenger numbers and current restrictions.
Many councils are also struggling to make savings which were planned for 2020/21.
The letter asks the Government to immediately agree to more funding which will cover all coronavirus-related pressures and losses of income for local authorities, as well as other measures including full reimbursement for all council tax support applications and asking Government to fully cover business rates collection shortfalls for the next three years. Council leaders are also stressing they need the resources to lead the longer-term recovery of communities and businesses following the impact of Covid-19.
To do this, they believe a sustainable financial settlement is essential, over at least three years. They are also asking for additional cash for investment in infrastructure to accelerate economic growth and to ensure long-term funding is provided to support the region’s transport infrastructure. They recommend the Government ensures any funding takes full account of the needs in local areas and that longer-term pressures on adults and children’s social care services are considered. The Prime Minister has been asked in the letter to consider how best to support local authorities’ council tax income, focusing on whether the system remains fit for purpose and whether the council tax referendum principles could be removed to make way for more locally accountable decision making.
ANEC has asked for discussions with the Government over the issues to ensure communities and businesses in the North East are not disadvantaged.