Mayor calls on Prime Minister to stand behind pandemic funding pledge

Salford mayor Paul Dennett has written to Prime Minister Boris Johnson over fears that the Government could renege on its pledge to fully fund local authorities’ response to the coronavirus pandemic.

Mr Dennett said in a tweet that “councils were told to spend whatever was needed to respond to the current crisis & we’d be compensated.”

He added: “However, we’ve recently noticed a concerning shift in language use by the government to: ‘sharing the burden’.”

Mr Dennett has published his letter to the Prime Minister, appealing for clarity, and spelling out the potential costs of further financial strain on local authorities should central government go back on its word to stand behind them financially.

In his letter, he says: “It is imperative that government fully funds the additional costs of this local response to this challenge.

“I welcome the initial £1.6bn funding that was provided to local councils at the beginning of this crisis.

“Alongside this the Secretary of State for Housing, Communities and Local Government was clear – that councils should spend whatever it takes to support people, and that costs would be fully reimbursed by Government.

“The announcement this weekend of a further £1.6bn support is also welcome – and I wait to see details of how this will be allocated.

“I am, though, concerned by the changing language of your Secretary of State that local government must now ‘share the burden’ of this crisis.

“Anything less than full cost recovery would leave local councils in a perilous financial position after 10 years of austerity. Salford has lost 53% of its funding from central government over that decade which has led to budget reductions of £211m from our budget – and many of our critical services have already been cut as a result.”

He went on: “Salford’s initial estimate is that the additional costs of coronavirus will be approx £33m, for the first six months of 2020/21 – from a loss of income and the additional demands placed on all of our services, from adult social care, children’s safety and welfare, ensuring children can access education, support for victims of domestic abuse, to wate and recycling and the provision of business advice, guidance and support.

“There is a real risk that this cost will increase, which will be reflected in any future financial submissions.

“As a minimum, councils must be no worse off as a result of the coronavirus response.

“Councils have provided food and wellbeing support to our vulnerable residents, including all of those on the Government’s shielded list; we have set up a community help line as part of the city’s Spirit of Salford Network ensuring no-one is isolated or alone at this time; we have administed new business grants on a scale not seen before; we have kept parks and our green spaces open; Salford has been able to maintain a full waste service; we have managed the delivery of PPE; and we have continued to support our vulnerable children and older people across the city.

Councils were told to spend whatever was needed to respond to the current crisis & we’d be compensated. However, we’ve recently noticed a concerning shift in language use by the government to: “sharing the burden”. Please see my letter to the Prime Minister today @LGA_Labour 👇🏻👇🏻 pic.twitter.com/FMLxSC8z0G

— SalfordMayor (@salford_mayor) April 20, 2020

“Our staff have maintained critical front-line services to ensure our residents are supported.”

He pointed out the legal responsibilities that councillors are under: “We are legally required to set a balanced budget.

“Anything less than full funding for the costs of our response to coronavirus will mean only one thing – further cuts to local services, impacting some of the most vulnerable in the city, and exacerbating job losses and unemployment after 10 years of austerity and cuts in logal government.

“Cuts to the very services we – and you – have relied on to support our residents in this crisis.”

He added: “Now, more than ever, government must put local government funding on a secure long-term future.

“Anything other than full funding of local government for our response and funding for longer term financial stability would be a betrayal of the critial front line workers in local government and of the people of Salford.