£1.6bn new funding for councils amid COVID-19 crisis

More than £14 billion from the Coronavirus emergency response fund will go towards public services, HM Treasury confirms.

More than £14 billion from the Coronavirus emergency response fund will go towards public services, including the NHS and local authorities involved in the “fight against Coronavirus”, HM Treasury has confirmed.

The funding has included £1.6 billion of new funding for local authorities.

HM Treasury says it is also working closely with the devolved administrations in Scotland, Wales and Northern Ireland.

In addition to funding urgent health priorities on a UK-wide basis, the Treasury is now providing the devolved administrations with almost £2 billion from this fund through the Barnett formula.

Our public services and its incredible workers are working with immense resolve and skill to keep us safe

Chancellor of the Exchequer, Rishi Sunak, said: “Our public services and its incredible workers are working with immense resolve and skill to keep us safe.

“We depend on them, which is why we are doing everything we can to provide our NHS, local authorities and others, with the resources and tools they need to tackle the virus.

“From the start, I’ve been clear our vital public services will get whatever they need to protect this country and its people from Coronavirus. We are delivering on our pledge.”

The £14.5 billion of expenditure approved so far includes:

  • £6.6 billion of support to health services
  • £1.6 billion for local authorities
  • £0.9 billion to cover extra measures such as food packages for extremely clinically vulnerable people who have been advised to shield themselves from the virus at home and do not have a local network of family and friends to drop off provisions
  • £3.5 billion to ensure vital rail services continue to operate now and, in the future, for those who rely upon them for essential journeys
  • £1.0 billion for the Scottish Government
  • £0.6 billion for the Welsh Government
  • £0.3 billion for the Northern Ireland Executive

On 11 March, the Chancellor initially set aside a £5 billion fund as a rapid response, and said that “whatever extra resources needed by the NHS and public services would be provided”.

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