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Wales Online
Wales Online
National
Richard Youle

Councils to get upfront instalments of tens of millions of pounds to help them deal with Covid-19

Councils across Wales will receive tens of millions of pounds upfront to help them pay for new and existing services during the coronavirus pandemic.

The money will also enable them to help struggling businesses and residents more effectively.

Local authorities have been setting up field hospitals, redesigning schools as childcare centres, and taking on a food distribution role, among other things.

With no council tax income in February and March, and revenue-raising venues like leisure centres closed, cash flow is becoming an issue.

Local authorities receive over half of their core funding via a revenue support grant from central Government.

All of Wales' 22 councils will get four instalments of this grant in April, two more than normal. This is not extra money, though.

"A revised profile of payments will be issued to all local authorities shortly," said a Welsh Government spokeswoman.

The help offered to people struggling during the pandemic:

Coronavirus: No interest on loans, cards and £500 free overdraft

Swansea Council's revenue support grant this financial year is £253 million out of a total of £468 million. The remainder comes from a share of business rates - also known as non-domestic rates - and council tax.

Carmarthenshire Council's revenue support grant and share of business rates this financial year comes to £274 million.

Responding to the extra revenue support grant instalments, council Leader Emlyn Dole said: "We welcome that payment albeit that it is not new money – it’s the monthly pay cheque in advance."

The Welsh Government said it was also providing councils with more upfront grant funding to support local businesses, and more upfront money to administer non-domestic rates relief.

All businesses currently eligible for small business rates relief will receive a grant of £10,000. Retail, leisure and hospitality businesses with a rateable value between £12,001 and £51,000 will receive a grant of £25,000.

The Welsh Government said it has also provided additional funding of £30 million for local authorities to help meet the new service pressures arising from Covid-19.

A spokesman for the Welsh Local Government Association (WLGA), which lobbies on behalf of councils, said: "The WLGA has been working exceptionally closely with the Welsh Government to ensure that local authorities have the resources they need for council staff to be able to continue to support business and residents, including the most vulnerable in our communities, during this very difficult period.

"With income likely to take an enormous hit and nearly £850 million required to support around 80,000 businesses across Wales, it was vital that funding was released early.”

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