Shadow Local Government Minister Mark Isherwood AM has questioned the Local Government Minister this week over how Local Authorities will be supported through the Covid-19 crisis in the long term.
Although additional funding has been provided to support Councils amid the pandemic, Mr Isherwood is concerned about the long term impact of the crisis on them and, taking part in yesterday’s Virtual Plenary Meeting of the Welsh Parliament, asked the Minister for Housing and Local Government what action the Welsh Government would be taking to address this.
Speaking via ‘Zoom’ from his home in North Wales, Mr Isherwood said:
“Your colleague, the Finance Minister, has confirmed to me that the additional £95 million that the Welsh Government is receiving following the UK Government's announcement of extra funding for Local Government in England will go into the Welsh Government's central fund.
“How will you address the impacts of COVID-19 on Local Authority Finances after the survey that the Welsh Local Government Association asked Local Authorities to complete by the end of this month reveals what the situation might be in terms of lost income, currently estimated at £33.2 million per month, although there's some potential for mitigating cost savings; immediate additional revenue cost of responding to the emergency, although I acknowledge that you've sent a claim form out to Local Authorities so that they can claim these back; longer term additional revenue costs; and additional capital costs – where each Local Authority will be in a different position in terms of their own financial resilience and reserves, with some more exposed than others?”
The Minister said in her reply: “We're working very hard with local authorities to understand the actuals on the ground. This isn't about a formula or trying to work out a one-size-fits-all. This is about trying to work out with each authority what their actual issues are and to try and cover them off.
“I would like to make it clear, though, that depending on how long this goes on for - so, if the lockdown continues another two months - it's hypothetical, I hasten to say, but if it happened - then, clearly, at the other end of the year, we would have a problem. I don't have infinite resources; the UK Government would also have that problem, and we will have to work very closely with them to see what would happen the other end.”
Speaking today, Mr Isherwood added: “Concern has been raised with me again today by local authority representatives who are concerned that the financial impact of Coronavirus will have a long-term impact on County Councils unless they receive further financial support from Welsh Government, where one County alone has assessed that the pandemic could potentially cost them more than £3 million each month through lost income and additional costs”.
