The Deputy Leader of the Liberal Democrat Group and Shadow Cabinet Member for Finance, Councillor Chris Gloster, will be seconding a motion at the next full meeting of Oldham Council (July 15) which calls on the Government to back the Council in its fight against Covid-19 with more cash.

Councillor Gloster commented on the professionalism and sacrifice of the medical, care and key workers across the borough who are in the front-line leading that fight:

“I want firstly to praise and thank the medical, care and key workers across the borough, many of whom are employed by this Council, and the many volunteers from amongst our communities, who have worked tirelessly and selflessly during this time of national crisis. We should all be grateful for and proud of their efforts; their dedication and professionalism continue to be an inspiration to us all as we work together to see off the Covid-19 pandemic and Build Back Better.”

Addressing the specifics of the motion, Councillor Gloster added:

“Oldham Council has incurred significant additional costs and suffered a significant loss of revenue as a result of the Covid-19 pandemic. Like the NHS and our emergency services, our workforce provides front-line services to those who are most vulnerable and at risk in our communities. The Oldham Liberal Democrats are gravely concerned that if the Conservative Government fails to honour its promise to fully reimburse Oldham Council for these extra costs and lost income that this will place us in a serious financial crisis. Simply put it will force us to cut some of the key services that the people in Oldham are currently relying upon and will continue to rely upon in the future.

“Oldham has already suffered more than its fair share of the burden of austerity. We have cut £221 million from our budget and in the next financial year, and the next, we already face demands from the Conservative Government for still more cuts. I just wish I had the opportunity to sit next to the Secretary of State for Communities and Local Government, Robert Jenrick, to tell him frankly that we cannot take anymore. If the Government truly wants Councils like Oldham to be partners in the fight against Covid, they need to give us more cash.”

The next full meeting of Oldham Council starts at 6 pm on Wednesday 15 July.

The text of the motion

Council 15 July 2020 – Motion: Funding Recovery, Jobs and Services

This council notes with thanks the combined efforts of council officers, our public sector partners, volunteers and businesses in working together to tackle the COVID-19 pandemic. From carers looking after older residents and putting themselves at risk, to the waste team quickly finding new ways of working to keep our bins empty, to the huge army of volunteers distributing food parcels to those in need, the crisis has shown Oldham at its best.

We must also acknowledge the funding and support packages that the Government has put in place to assist businesses in Oldham, some of which have been administered by the council. Without this Government support many businesses would have ceased trading and more Oldhamers would be facing unemployment.

However, whilst there has been a range of Government support, the council is facing a significant financial challenge. Some Government funding has been received, including £14.2m of unring fenced grant. A further funding package was announced on 2^nd July but it did not provide the clarity required for the council assess the extent of the additional financial support. However, it is evident that it will fall far short of the funding required to compensate for the additional expenditure being incurred and for the income that has been lost in this financial year. 

If the Government does not provide any more support the council will have to consider making cuts to key services in order to manage its finances effectively. This will also have an impact in 2021/22 which already has a budget reduction target of £23m. Any additional financial pressure will be on top of the £221m of budget reductions that the council has been forced to make as a result of the Government’s austerity regime.

It is important to note that on 16^th March the Secretary of State for Communities and Local Government, Robert Jenrick, told English council leaders “This government stands with local councils at this difficult time. Everyone needs to play their part to help the most vulnerable in society and support their local economy. The government will do whatever is necessary to support these efforts.”  By 14 April the message had changed and Jenrick told council leaders that councils would have to “share the burden” of coronavirus-related costs.  We need the Government to honour its original statement and do whatever is necessary to support councils in their response to COVID-19 – including fully funding the extra financial pressures.

This council resolves to ask the Chief Executive to write to:

• The Secretary of State for Communities and Local Government to fully fund councils for the extra costs and lost income arising from COVID-19 in line with his communication of 16^th March
• The LGA to confirm the council’s support in their lobbying of Government for increased funding for local government in response to financial pressures arising from COVID-19
• Key partner organisations across Oldham, requesting their support for our campaign for central government funding that protects the jobs of key workers and enables Oldham to build back better

Proposed Councillor Abdul Jabbar MBE, Seconded Councillor Chris Gloster