Devon councils warn latest round of government COVID funding is not enough

Councils across Devon have welcomed the fourth tranche of COVID funding they have been awarded by the government, but have warned it won't cover all their predicted losses and say they still have no idea what level of funding they will get next year.

An extra £10million from the government has been given to councils in Devon, with the intention that it will help cover coronavirus-related costs and ensure councils have the resources they need to keep providing vital services over the winter.

But while council chiefs across the county have welcomed the additional boost to their coffers, concerns and fears have been raised about how they can be expected to set a budget for 2021/22 when there is still no indication as to when the government will announce how much money they will be getting.

Local authorities in Devon have now received £130million in extra government support since the start of the pandemic, with £10.4million given in the latest tranche, but both East Devon District Council and South Hams District Council were only given £100,000 – the minimum amount that any council has been given.

Cllr Jack Rowland, portfolio holder for Finance at East Devon District Council, said: "The latest amount received from central government of £100,000 although welcomed is actually the lowest amount being paid to a local authority in the current round based on the formulae used.

"This only goes a small way to plug the forecasted end of year deficit of £1.2million that has been caused by the COVID-19 crisis where related costs being incurred continue to rise in a number of areas of the services provided.

"In addition there is no indications at the moment regarding government funding for next year and we are starting the budget planning exercise for 2021/22 very soon so the uncertainty adds an additional problem In trying to plan for next year and the medium term financial plan."

As part of £1billion announcement nationwide, £100million will to support council-run leisure centres, which are proving key to boosting health and wellbeing across the South West.

Cllr Rowland said: "The government news regarding additional funding help for leisure services is also welcomed, but, as ever, we await the detail to see exactly how this will help plug the financial gap caused by COVID-19 for Leisure East Devon."

Of the district councils in Devon, the highest award of funds went to North Devon Council, who were given £385,547.

The larger authorities have been given the most – £67million for Devon County Council, £31million for Plymouth City Council and £19million for Torbay Council.

Councils can also claim funding through a compensation scheme for lost income from sales, fees and charges, while further support will be made available to areas placed under Tier 3 restrictions.

Communities Secretary Robert Jenrick said: "Since the start of the pandemic, we have backed local councils with the funding they need to support their communities, protect vital services and recover lost income.

"This extra £1billion funding will ensure councils have the resources they need over the winter and continue to play an essential role on the front line of our response to the virus, while protecting the most vulnerable and supporting local businesses."

Culture Secretary Oliver Dowden added: "It's vital that we keep ourselves fighting fit through the winter months and local authority leisure centres are crucial to this.

"This £100million fund will help keep leisure centres across the country open. I urge leisure centres to bid for the money and people to make the most of these precious local facilities."