Emergency coronavirus funding: here's how much cash councils will get this winter

Councils will receive an extra £919 million in emergency coronavirus funding to help them through the winter, local government minister Robert Jenrick has announced.

But with dozens of local authorities set to get less than £1 per head of their population, council leaders have warned it will not be enough to turn the tide on the financial challenges they face.

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The latest pool of money will be the fourth round of emergency funding the Government has rolled out since March, and brings the total amount awarded to £4.6 billion.

The grants are not ringfenced, so cash-strapped councils under pressure because of the pandemic will be able to use them however they see fit.

There are wide variations across the country in the awards made – for county or unitary councils, the new funding ranges from £2.48 per person (Rutland) to £43.93 (Manchester).

For smaller district councils – which provide services such as housing and bin collections in areas where there is also a larger county council – funding ranges from 62p per person (Wealdon and Harrogate) to £10.31 (Burnley).

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More than 30 district councils have been given less than £1 per head.

The coronavirus crisis has created a “perfect storm” for councils’ finances, according to the Institute for Fiscal Studies (IFS), both by increasing spending and reducing incomes.

Local authorities have incurred costs supporting rough sleepers and shielders, buying personal protective equipment (PPE) and helping with test and trace and infection control, while social distancing rules have increased costs of delivering services like social care.

At the same time their income from service charges, council tax and commercial rents has fallen.

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Council leaders across the country have welcomed the additional funding, but warned it will not be enough to fully address the financial challenges they face.

Richard Watts, chair of the Local Government Association’s resources board, said: “This much-needed support is helpful but significant challenges remain.

“It is vital that the Government addresses in full the financial challenges facing councils as a result of the pandemic, including all lost income and local tax losses.”

The latest round of funding is equivalent to £16.21 for every person in England. Overall, councils have been given £80.71 per head in emergency grants since March.

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