Coronavirus cash welcomed in South Tyneside - but fears remain over council budgets

The government’s latest spending plans include a £5billion emergency response fund to support the NHS and other services, as well as a ‘hardship fund’ to help English councils deal with their most vulnerable families.

But the debut budget of new chancellor Rishi Sunak has also been slammed for failing to address other issues facing borough bosses.

“I wholeheartedly welcome the Chancellor’s budget announcements around Covid-19 and resources to tackle the virus,” said Coun Ed Malcolm, South Tyneside Council’s cabinet member for innovation and resources.

“We must do everything we can to protect and support our communities.

“However, it must be noted that local government was again absent from yet another budget.

“Local government services that are under intense pressure in terms of resources and capacity – local government services that are already feeling the strain.”

Coronavirus measures also include statutory sick pay for anyone advised to self-isolate during the outbreak, with sick-notes to be available through NHS 111 and small businesses eligible for refunds on the cost of this from the government.

More than £600billion has been earmarked for upgrades to roads, housing and internet connections over the next five years.

This includes £5billion to invest in broadband, £2.5billion to fix potholes and resurface roads and £650million to get rough sleepers off the streets.

But apart from the £500million hardship fund, little cash has been directly promised to councils, despite warnings from the Local Government Association that English councils face a combined funding gap worth £6.5billion by 2025.

Coun Malcolm said: “As always the devil is in the detail. It is unclear as to how many of the big issues we still face will be addressed, especially adult and children’s social care.

“We wait to see in the coming months how the Chancellor’s announcements will work in practice, how any new funding will be allocated and what the future for local government finances is.

“Until then, we will continue to roll up our sleeves to deliver for the people that we represent in our communities.”