Additional Fiscal Flexibilities
The Cabinet Secretary and COSLA asked HM Treasury to consider a number of temporary fiscal flexibilities to support the response of Local Government to COVID-19 in the following areas:
to utilise £156 million of local authority capital budget directly for Covid resource costs;
Capital Receipts Received - Dispensation for both 2020-21 and 2021-22 through Statutory Guidance to allow Councils to place capital receipts in the Capital Grants and Receipts Unapplied Account and then used to finance Covid expenditure (revenue);
Credit arrangements - At present Councils are required by statutory guidance to charge the debt element of service concession arrangements to their accounts over the contract period.