Council lashes out at government's claim £11.26m emergency funding was enough for Luton

Luton Borough Council has lashed out at the government after its request for a £50m emergency funding package went unheeded.
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The Ministry for Housing, Communities and Local Government (MHCLG) insists that the local authority has had its backing.

MHCLG states the council's latest return shows the £11.26m emergency funding they have already received is enough to cover coronavirus-related spending.

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They also added that the council’s core spending power increased by over £8.9 million this financial year, before emergency funding was provided.

Luton town centreLuton town centre
Luton town centre

A MHCLG spokesman said: “We are grateful to everyone at Luton Council for all their hard work to support their community during this national emergency and we are backing the town as they respond and recover.

“We recognise that some councils with strategic investments, such as airports, are put in an exceptional position by this crisis.

"We’ll continue to work closely with Luton Council to help them navigate through what is undoubtedly a difficult situation, as they support their communities through this national emergency.”

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But Luton Borough Council has contested the department's claim it has received enough support.

A council spokesman said: “The welcomed money Luton and other councils across the country have received was used to deal with the immediate crisis.

"However it does not take into account the catastrophic loss of income that Luton is facing or the impact this will have on the town.

“Between 2015/16 and 2020/21 the core spending power for England has increased by 10% whereas for Luton it has increased by only 7%.”

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The council's executive committee approved major budget cuts on Monday, expected to lead to some 365 job cuts.

These are due to be confirmed at its July 14 emergency budget meeting.

Luton Borough Council's spokesman added: "We cannot accept MHCLG’s suggestion that they are yet backing Luton or that they yet fully understand the devastating impact the emergency budget will have on people in our town.

"If they really were backing Luton they would be taking appropriate action to provide a bespoke package of funding before our 14 July emergency budget meeting.

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"To be absolutely clear, once again, we are facing a £50m in-year budget shortfall due largely to the impact Covid-19 has had on the aviation industry, revenue from which we have had to rely on to fund services for our most vulnerable people in response to the harsh realities of 10 years of austerity.

"This £50m shortfall includes an assumption that an additional £6.3m Covid-related funding will be provided by the government which is yet to be confirmed. If this assumed additional support is not forthcoming, our financial shortfall will be even worse."

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