Agenda item

The Chair invited Nicola Morton (Head of Local Government Finance) to introduce the report.

Nicola discussed the following developments and points of work since the last meeting;

-        Collaboration is ongoing with the Institute for Fiscal Studies on the financial challenges facing local authorities in the medium term due to COVID. Additional IFS work on the funding gap for local government will feed into the LGA’s submission to the Comprehensive Spending Review.

-        The Tranche One Business Rates Review submission has been cleared by the Task & Finish Group and the Executive Advisory Board. The Tranche Two response is in progress.

-        Sales fees and charges compensation scheme has been published. Local authorities will be asked to absorb 5% of losses but will be able to claim on the next 75%.

-        Applications to the Business Grants Scheme closed at the end of August 2020. Payments can be expected in September 2020. A new scheme to compensate closed businesses has also been announced. The LGA position is that local authorities should be compensated in full for losses accrued due to COVID.

-        A first draft of the CSR submission has been submitted to the EAB and will be shared with the Resources Board in a future meeting.

In the subsequent discussion the following points were raised by members:

-        Members raised concerns with the medium to long term funding implications for local authorities related to the COVID crisis. Additional financial burdens continue to be raised without appropriate resourcing.

-        Leisure was highlighted as an area of ongoing concern. Members noted that many authorities continue to be heavily impacted by loss of income that will not be reimbursed due to outsourcing and trust arrangements for leisure services.

-        Members discussed the predicted increase in demand on the welfare system over the winter due to the economic impact of COVID.

-        Members requested that Officers make specific representations to the Government on the complexity and burden of evidence to claim from the Income Compensation Scheme. Sarah noted that work is underway on this topic.

-        A short discussion took place on the Resources Board’s role and engagement with the Test & Trace system. Concerns were raised with the level of funding being provided to authorities in comparison to private providers. Sarah explained the governance process around Test & Trace and the LGA’s ongoing lobbying efforts to support a localised system.

The Chair summarised the discussion highlighting leisure as an area where strong representations are needed.

Decision

The members of the Resources Board noted the update.

Action

-        Officers will proceed with the delivery of the LGA’s work on local government finance issues.

-        Officers to make representations on the reimbursement of losses on leisure provision.