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Your weekly update of London local government issues

12 August 2020

Funding gap grows

London boroughs’ latest estimate of the overall financial impact of Covid-19 will exceed £2 billion this year – up from £1.9 billion last month. Boroughs have received £587 million in emergency funding from the government, leaving a £1.4 billion gap.

The estimated additional expenditure required because of the virus has increased by £130 million since June, largely due to rising demand for adult social care and homelessness and rough sleeping services.

Cllr Peter John OBE, Chair of London Councils, said ( Cllr Peter John OBE, Chair of London Councils, said: “Boroughs have played a crucial role in London’s response to Covid-19. “We’re proud that we helped more than 5,000 rough sleepers into emergency accommodation, delivered more than 80,000 food parcels to vulnerable residents, and secured millions of items of PPE for use in our local communities. All this work has been essential for keeping Londoners safe and slowing the spread of the virus. “However, the pandemic has played havoc with our finances. In March the government assured councils that it would do ‘whatever is necessary’ to support our efforts to help residents and businesses through the pandemic. But the extra money provided so far is not nearly enough to cover our costs. Boroughs are instead left facing a massive £1.4 billion shortfall. “We’re extremely concerned about the implications for London’s local services, which so many Londoners rely on, and the capital’s post-pandemic recovery. The government must move quicker to stabilise council finances and to commit to long-term, sustainable funding for the sector as part of its upcoming Comprehensive Spending Review.”?campaignkw=PJ ) ( Cllr Peter John OBE, Chair of London Councils, said: “Boroughs have played a crucial role in London’s response to Covid-19. “We’re proud that we helped more than 5,000 rough sleepers into emergency accommodation, delivered more than 80,000 food parcels to vulnerable residents, and secured millions of items of PPE for use in our local communities. All this work has been essential for keeping Londoners safe and slowing the spread of the virus. “However, the pandemic has played havoc with our finances. In March the government assured councils that it would do ‘whatever is necessary’ to support our efforts to help residents and businesses through the pandemic. But the extra money provided so far is not nearly enough to cover our costs. Boroughs are instead left facing a massive £1.4 billion shortfall. “We’re extremely concerned about the implications for London’s local services, which so many Londoners rely on, and the capital’s post-pandemic recovery. The government must move quicker to stabilise council finances and to commit to long-term, sustainable funding for the sector as part of its upcoming Comprehensive Spending Review.”?campaignkw=PJ ): “Boroughs have played a crucial role in London’s response to Covid-19.

“However, the pandemic has played havoc with our finances. In March the government assured councils that it would do ‘whatever is necessary’ to support our efforts to help residents and businesses through the pandemic. But the extra money provided so far is not nearly enough to cover our costs. Boroughs are instead left facing a massive £1.4 billion shortfall.

“We’re extremely concerned about the implications for London’s local services, which so many Londoners rely on, and the capital’s post-pandemic recovery. The government must move quicker to stabilise council finances and to commit to long-term, sustainable funding for the sector as part of its upcoming Comprehensive Spending Review.”

Planning changes 'potentially disastrous' for London

London Councils has stated its strong opposition to “any moves towards a planning free-for-all”.

Responding to the government’s white paper on planning policy, London Councils expressed concern that the changes will severely restrict boroughs’ ability to uphold quality standards and to ensure affordable housing targets are met.

( [link removed] )Cllr Darren Rodwell, London Councils’ Executive Member for Housing & Planning, said ( [link removed] ) ( [link removed] ): “These changes are potentially disastrous for Londoners and could reduce the amount of affordable housing built in the capital.

“London is suffering the most severe homelessness crisis in the country and the chronic shortage of affordable housing is at the heart of this. It would be a massive step backwards if the government undermined boroughs’ ability to ensure new development in London includes affordable homes.

“While we support ambitions to build more housing, we strongly oppose any moves towards a planning free-for-all – which would lead to lower quality and fewer affordable homes in London.

“We will be sharing our concerns with ministers. Councils certainly need more detailed information and reassurance from the government over how these changes would work.”

Business Grants deadline extended

The government has this week agreed to extend the deadline for local authorities to process discretionary grants to small businesses. On 23 July the government announced that all three of its business support grants schemes, including the more complex discretionary scheme, would close on 28 August.
Following a letter from London Councils' Executive Lead for Business, Good Growth and Europe Cllr Claire Coghill, that highlighted the difficulties London businesses would face in meeting the deadline, Secretary of State for Business Alok Sharma has written to chief executives to confirm the government will now allow until 30 September to work through applications and make final payments under the scheme.

Shop Local Week

The government has launched Shop Local Week ( [link removed] ) (10 - 16 August) to encourage shoppers to return to their local high street and shop safely.   

( [link removed] )London's boroughs have been supporting local retailers in their phased re-openings since 15 June. ( [link removed] ) ( [link removed] )

Shop Local Week aims to reassure shoppers that safety is paramount, and that their custom is valued by local high street shops and businesses. It gives customers an opportunity to show appreciation and support for their ‘locals’.

Shop Local is a dedicated week within government’s ( [link removed] )Enjoy Summer Safely ( [link removed] ) ( [link removed] ) campaign, which aims to inspire the public to get back to the things they enjoy, while following coronavirus safety guidelines.

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By the Leaders' blogs

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Coronavirus (Covid-19) latest information and advice

Please check these websites for the most up-to-date and accurate infomation regarding coronavirus and government, NHS and PHE advice:

Staying safe outside your home ( [link removed] ) ( [link removed] )

Information on UK government response to Coronavirus (Covid-19) ( [link removed] )

Read frequently asked questions about coronavirus on Public Health England’s blog ( [link removed] )

Guidance for employees, employers and businesses ( [link removed] ) ( [link removed] )

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London Councils fights for the best deal for our boroughs, develops policy and lobbies government on the issues
that matter for London. We also run pan-London services like Freedom Pass and Taxicard.
59½ Southwark Street, London SE1 0AL | [email protected] ( [email protected] )

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