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More than £730 million in vital EU cash which could help local communities bounce back from COVID-19 risks going unspent and being sent back to Brussels if the funding is not allocated by the Government before the end of the year, councils warn today.

“Councils continue to face significant extra cost pressures and huge income losses as a result of the pandemic. The Government’s commitment to fund a portion of lost income from fees and charges is a step in the right direction but does not cover full losses, nor does it extend to commercial income losses."

“The further £500 million extra funding to help councils meet extra COVID-19 costs pressures is helpful but, in the context of the funding gap councils still face, substantial additional funding will be needed and we await further details on how this money will be distributed."

The Local Government Association is calling for the Government to urgently bring forward details of its comprehensive plan to ensure the financial sustainability of councils this year and next.

“We are pleased the Government has indicated it is working on a comprehensive plan to address the ongoing financial challenges councils face this financial year. We urge the Government to bring forward details as soon as possible and ensure it address three key elements of the pressures facing councils."

"We are pleased that the Government has indicated it is working on a comprehensive plan to address the ongoing financial challenges councils face this financial year as they lead communities through the COVID-19 crisis. We urge the Government to bring forward details of this plan as soon as possible."

“Councils have responded quickly and effectively to the complex challenges faced by local communities and this funding will help them continue to provide much needed crisis support to households who are struggling to afford food, fuel and other essentials."

"Councils continue to lead local efforts to beat this disease but are facing increased cost and demand pressures at the same time as experiencing a significant drop in income."

LGA Chairman Cllr James Jamieson said: “Councils across the country are leading efforts to support communities through the unprecedented coronavirus crisis we face. They continue to do an amazing job."

Councils across the country are leading local efforts to support communities through the coronavirus crisis and keep day-to-day services running. This has led to significant unforeseen demands and costs caused by the pandemic – to protect the vulnerable such as older, disabled and homeless people - and in order to continue to keep normal services running, such as bin collections. This is at the same time as councils have seen a large and immediate hit to their income. Many councils use income from fees and charges to fund a range of services, such as leisure and planning services, many of