Local government has been ignored in the Chancellor’s summer statement despite being key to driving economic recovery following Covid-19, Plymouth City Council leader Tudor Evans says.
The Chancellor’s announcement comes immediately after councils were told their loss of income and extra costs from Covid-19 wouldn’t be full covered by Government.
Councillor Evans said: “There’s nothing in the Chancellor’s statement for local government despite the fact that councils across the country are now having to consider letting staff go because the Government is reneging on its promise to cover the huge financial impact of Covid-19. It is now saying it will only refund 71 per cent of these costs which will leave huge holes in budgets already stretched after years of austerity.
“What we really needed from the Chancellor was a massive programme of support to enable local communities to rebuild. The Prime Minister talked about a Roosevelt style injection of cash but what we’ve got is a voucher scheme for eating out in restaurants. We were promised a new deal but we’ve ended up with a meal deal.
“Local government is absolutely key to driving economic recovery and preparing for Brexit later in the year. The Government has absolutely got to recognise this and take action now before it’s too late and irrecoverable damage is done.”