16.04.20
Councils given ability to defer £2.6bn in Government payments
The Ministry of Housing, Communities and Local Government has announced today (Apr 16) that councils will be given greater financial relief for cash flow pressures.
New measures mean that councils will be able to defer £2.6bn in business rates payments to Central Government to ease immediate financial pressures on local authority cash flows.
In addition, £850m in social care grants will be paid up front this month as an extra fiscal support measure put in place by government.
Councils are working as the country’s fourth emergency service in this crisis, providing lifelines to vulnerable people in the communities, including providing financial relief to local businesses and delivering essential supplies.
Local Government Secretary Rt Hon Robert Jenrick MP said:
“Whether it be caring for the elderly, providing outpatient services, councils are providing vital support to the most vulnerable people in our society throughout this pandemic.
“I am determined councils get the support they need which is why I am taking action to ease some of the immediate financial pressures they face in responding to coronavirus, helping to protect the NHS and save lives.”
The £2.6bn in payments will be deferred if necessary, for the next three months as part of the business rates retention scheme.
The £850m worth of care grant payments for both children and adult services carried out by local councils will all be paid this month, instead of the normal monthly payments in April, May and June.
It is hoped that these changes will offer immediate support to local authorities allowing them to further support front line social care services and the wider community.