Published: 10th Mar 2021

Local authorities in England are facing combined additional costs and income losses of almost £10bn as a result of the Covid-19 crisis, according to a new report. The report by the National Audit Office (NAO) claims councils have forecast a loss of £2.8bn of income in 2020-21, as a result of a reduction in their sales, fees and charges, commercial and other income streams. Authorities expect to lose £695m alone from reduced car parking income, and £554m income from facilities such as leisure centres, theatres and museums that they run. Further losses of £1.3bn in council tax and £1.6bn in business rates are expected but will not affect budgets until 2021-2022. The report notes the Ministry for Housing, Communities and Local Government (MHCLG) has engaged extensively with local authorities to gather data on the financial impact of COVID-19. Alongside other departments, it has so far announced £7.9 billion in grant funding … (To read the full article, subscribe below)