Government gives Milton Keynes Council an extra £7m to cope with immediate coronavirus crisis

    An extra £7 million has been given to Milton Keynes Council to cope with the immediate impacts of the coronavirus crisis.

    But the leader of the council, who has written to the Prime Minster about finances, is still seeking assurances over what will happen once the crisis is over.

    Milton Keynes Council has spent millions on the response to covid-19, including in buying personal protective equipment (PPE), while at the same time seeing drastic reductions in its income.

    Its car parking income has dropped by £3 million, the council says.

    “I am glad that the Government is helping us meet the immediate increase in spending and loss of income,” said Cllr Pete Marland (Lab, Wolverton), the council leader. 

    Cllr Marland said the council does not have an immediate cashflow problem and is not facing an “impending financial meltdown” because it has a “decent financial base.”

    He puts that down to “years of hard work by the Labour administration working in partnership with our Lib Dem opposition.”

    The council, despite not having one party in overall control, is run by Labour which has a partnership arrangement with the Lib Dems.

    Cllr Marland added: “I welcome the extra money, however, the balance of funding is again tilted heavily in favour of rural Conservative shires that have had the least impact from Covid-19.”

    The Government is letting councils use their own judgements on how to spend the money.

    But Cllr Marland says this has allowed some “badly run” councils to “cover off existing poor financial management rather than on Covid-19 services”.

    “I don’t think that’s right,” said Cllr Marland, “funding should go on helping those in need.”

    Cllr Marland said that the real issue for Milton Keynes will be in the longer term.

    The council is projecting an additional £37 million black hole over the coming years.

    Cllr Marland said: “This is where the mood music from the Government has changed more negativity, and that is why I have written to the Prime Minister asking for reassurances on long term funding to ensure the impact of Covid-19 isn’t devastating cuts to services.”

    The extra £7.4m announced this week comes on top of some £6 million announced in March, bringing the total to £13.5 million.

    Local Government Secretary Robert Jenrick MP said: “Councils are playing a central role in our national fight against coronavirus and the government continues to back them at this challenging time.

    “The Government has confirmed the funding will not be ringfenced, recognising councils are best placed to decide how to meet pressures in their local area.”

    The Conservative-run Government also confirmed that county councils will be receiving 65 per cent of the extra money.

    Whitehall has also allowed councils to defer business rates payments and paid out millions of pounds to support social care.

    And in the longer term, the Government says it will “continue to work with councils on the best approach to the next financial year” including the amount it gives out in the next financial year.

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