Devon councils get £10 million covid dosh

But East Devon's £100k is country's lowest

Councils across Devon have welcomed the fourth tranche of government funding, 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.

They're received an extra £10 million to cover coronavirus-related costs and ensure they can keep providing vital services over the winter. But concerns 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 £130 million in extra government support since the start of the pandemic, with £10.4 million in the latest tranche, but both East Devon District Council and South Hams District Council were only given £100,000.

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 £1.2 million 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."

As part of a £1 billion announcement nationwide, £100 million will support council-run leisure centres, but 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.”

South Hams District Council’s Leader, Cllr Judy Pearce, said: “This extra funding of £100,000 is very welcomed and is a result of collective lobbying activity. This will help us to continue providing vital local services as we approach the winter period.

“The funding has not been ring-fenced, meaning that the Council will decide how to use the additional funding, in order to best protect public health, local vulnerable people and deliver essential services. We are also very pleased to hear the Government has announced a £100million leisure fund that Councils can apply to, in recognition of the ongoing challenges many local authority leisure centres are facing.”

West Devon Borough Council will receive an allocation of £151,414 from the fourth tranche of covid funding, and Cllr Neil Jory, Leader of West Devon Borough Council said: “The Government has provided much needed funding to councils so that they can support their communities, protect vital local services and meet some of the additional financial pressures being faced by councils. 

“I am also delighted that the Government has announced a £100 million fund to help keep Local Authority leisure centres open, through the most difficult period they have ever faced. We will certainly be making a bid for the funding. We know how important these facilities are to the health and wellbeing of our residents.”

Mid Devon District Council has received £202,000. Andrew Jarrett, deputy chief executive and director of finance, said that while the funding was welcome, it remains highly likely that further measures will be needed to ensure the medium and longer term funding viability of councils.”

He added: “This government funding has been essential in ensuring the council can continue to deliver essential public services and also assists with some of the new-covid response measures. The council has also made its first claim against the new Income Protection Scheme set up to compensate councils that have seen significant reductions in fees and charges from services such as; leisure, car parking, planning, trade waste, etc. The annual loss from these key service income streams is currently estimated to be circa £1.6 million in 2020/21.

Teignbridge District Council have received £264,280, but said that they will need to assess the impact of further restrictions which could be introduced over the winter as to how that will affect their operations and anticipated budgetary projections.

Of the district councils in Devon, the highest award of funds went to North Devon Council, who were given £385,547. Jon Triggs, Head of Resources at North Devon Council said that the fourth tranche of funding is welcome. He added: “Overall the recent package of funding announcements in addition to this tranche of money such as the separate reimbursement of losses on income have provided some level of certainty, however we do need further clarity on funding for future years to provide some certainty moving forwards.

Torridge District Council has been awarded £330,000, while Exeter City Council was given £310,000, and asked the same questions as was posed to the other councils as to how the allocation will help bridge the budget gaps, what will it be used for, and whether it is enough or if more help is needed, an Exeter City Council spokesman simply said: “I imagine too early to say.”

Local authorities in Devon have now received £130 million in extra government support since the start of the pandemic.

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