Shropshire Star

Shrewsbury MP Daniel Kawczynski calls for government to back councils or risk calamity

Councils need more financial support from government or risk potential calamity, says Shrewsbury MP Daniel Kawczynski.

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Daniel Kawczynski

Mr Kawczynski has called on Robert Jenrick, Secretary of State for Housing, Communities and Local Government, not to allow councils to become another victim of Covid-19, and has urged him to follow the chancellor, Rishi Sunak's pledge to "do whatever it takes" to support them.

He said that Shropshire Council had so far received just under £9 million out of £1.6 billion made available to councils by the government last month.

Mr Kawcyzynski said that costs of the crisis for Shropshire Council were already £21m – and are likely to increase substantially, and that prior to the crisis he had already been lobbying ministers for a £50m increase in the authority's base budget.

"Across the country, town and county halls face increased demand for services such as adult social care even as revenues are squeezed by the effects of lockdown. My own local council, Shropshire, provides a case in point," he said.

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"To date they have received just under £9 million from the initial £1.6 billion of extra funding announced in March. Were they to receive a similar share from the second tranche – and they’re not optimistic – total extra support from the centre would come to around £18 million. It isn’t enough."

The Conservative MP said he understood the anxiety of some in the party over the level of spending required, but added that now is the time to do so.

He said: "I understand why some in Government are cautious. As a Conservative I believe strongly in devolving both power and responsibility, and am deeply cautious about running up debts.

"But just as there are times when it’s right to intervene in the economy, as Sunak has done, so too are there times when we must let central government shoulder the burdens of local authorities. This has to be one of them."

Mr Kawczynski said the impact of the coronavirus crisis had led to increases in costs for a number of council services.

Challenges

He said: "The council face increased demand for services to protect the vulnerable – including issues such as homelessness – whilst losing anticipated income from council tax, business rates, fees and charges, and commercial sources. Initial estimates put the total ‘Covid cost’ to Shropshire at £21 million. However other councils have reportedly produced much higher figures, and my sources fully expect the eventual sum to exceed this figure.

"This shortfall only compounds the challenges my local authority already faced."

Mr Kawczynski warned that without support some councils could even fail, risking another national crisis.

He said: "Unless the Government steps up, there are serious concerns that the council could spend its remaining financial resilience filling the shortfall in coronavirus funding and end up unviable.

"It’s difficult to overstate what a calamity this would be: local government oversees a huge range of essential services, and Shropshire’s is anything but an isolated case.

"If the Government doesn’t step up and give local authorities the support they need, ministers risk creating another national crisis."

The call comes after reports that Mr Jenrick raised the issue of "burden sharing" during a conference call with council leaders.

Mr Kawczynski said that the only solution is to follow the chancellor's lead.

He said: "By insisting that councils ‘share the burden’, ministers risk exacerbating inequality by letting the financial hammer fall heaviest on those parts of the country which most need help.

"The Communities Secretary has already written to MPs setting out in detail the many steps the Government has already taken to support local authorities, including billions of pounds worth of both extra funding and deferred payments. But if he wants to avoid adding our local authorities to the roster of Covid-19’s victims, he must match the Chancellor’s commitment to do “whatever it takes”."

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