Fears latest £500m government pledge to councils is still not enough as shortfall 'continues to grow' in Portsmouth

This week an extra £500m of government funding was announced to reimburse local authorities for lost income amid the pandemic.

Local Government Secretary Robert Jenrick said the funding, which is not ring-fenced, would bring the total Covid-19 support to local authorities to £4.3bn.

It is not yet known what share of the additional fund Portsmouth City Council will receive, but it is now thought the authority's shortfall could be closer to £20m - with previous reports suggesting it would be around £17m - including additional service costs and loss of income.

Council leader Councillor Gerald Vernon-Jackson said: 'This money will be nowhere near enough what councils actually need.

'The funding gap in Portsmouth is now looking closer to £20m, the gap continues to grow all the time.

Under the government's plan, some councils will be reimbursed for 75 per cent of lost income. This will apply where more than five per cent of planned takings from sales, fees and charges have not been collected.

The government will also allow council tax and business rate deficits to be paid over three years instead of the usual one.

Cllr Vernon-Jackson added: 'This new lot of funding we have been told can cover loss of income but doesn't cover lost rent during this time, which is a large amount of money.

'So the money is never going to cover the real losses felt by all councils. I don't know if this is just because the government doesn't know how local councils work or if it's being done to punish us.'

So far Portsmouth has been given £11m in funding from the government.

The Chartered Institute of Public Finance and Accountancy (CIPFA) said councils nationwide would still have a £1.2bn shortfall in funding after the move.

The CEO of CIPFA , Rob Whiteman, said: 'While the announcement of £500m additional funding is of course welcome news for councils, this does not cover the full extent of the costs they are incurring this year as a result of the pandemic, particularly cost pressures felt in social care.'

Hampshire County Council is currently facing a shortfall of around £21.6m due to the pandemic. The council was approached for comment.

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