Title

FINANCE

The sector's substantive funding has come at a significant cost

Carl Les says we should be under no illusion about the scale of the challenge ahead, 'with an elongated outbreak impacting our cashflows and revenue streams more and more'.

They say a week is a long time in politics and that phrase certainly rang true in a week in mid-April which began with county leaders expressing anxiety over council finances due to the outbreak, but ended with the sector being given a substantive funding boost.

In his Saturday address to the nation, communities secretary Robert Jenrick praised the role councils are playing, showing his appreciation to councils and their staff for their national and local efforts. But, this substantive funding has come at a significant cost.

Even before the Government had asked councils for detailed projections on costs, the County Councils Network (CCN) had written to the chancellor at the beginning of April, outlining that no council should issue a s114 notice, due to assisting with the national effort and protecting lives.

In the week leading up to the announcement, the CCN, alongside the Local Government Association, has been at the heart of discussions with the Treasury and ministers – putting forward evidence of the unprecedented financial challenges we have faced and our concerns over cashflow and lost revenue.

The final sum of £1.6bn was bigger than initially indicated, with CCN providing evidence directly to the Treasury in the final hours of the negotiation.

I believe the positive relationships the sector built with the chancellor during his time as a local government minister last year has stood us in great stead for these discussions. It is hugely beneficial to have someone at No.11 who acutely understands local government finance.

Equally, we should be under no illusion about the scale of the challenge ahead, with an elongated outbreak impacting our cashflows and revenue streams more and more, on top of the savings councils already had to make before the outbreak.

The short-term nature of this funding has been recognised by the CCN, with county leaders calling on the Government to continually review the situation for local authorities in the coming weeks and months. But for now, we should all feel more positive that we have a Government that is willing to listen and is able to act. It is important that this money is put to good use and we continue to protect and serve our communities.

Cllr Carl Les is finance spokesperson for the County Councils' Network and leader of North Yorkshire CC

FINANCE

Putting dynamism into devolution: defining the challenge

By Mike Emmerich | 20 August 2026

The prize from devolution is not stronger strategic authorities for their own sake, but places capable of delivering sustainable economic growth and more nim...

FINANCE

28 years later - lessons from Herefordshire's unitary journey

By Cllr Roger Phillips | 19 August 2026

Reflecting on Herefordshire Council’s reorganisation 28 years ago, leader Cllr Jonathan Lester and chairman Cllr Roger Phillips say experience suggests struc...

FINANCE

Nobody ever voted for a map

By Ben Page | 17 August 2026

Rewiring the State offers the most significant shift in local government for a generation, but there is still a lot that has been left unwritten, says Ben Page.

FINANCE

Do devolution differently: without LGR

By Colin Copus | 14 August 2026

Steve Leach and Colin Copus write an open letter to the Prime Minister urging the government to rethink local government reorganisation and strengthen devolu...