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Martin Reeves, Solace spokesperson for Local Government Finance, said: “Solace welcomes this additional funding and initial package of financial alleviation measures in recognition of the vital additional expenditure by all local authorities on Covid-19 and the unavoidable and ongoing income losses councils are facing.

“Local government has been at the heart of responding to this crisis in our local communities and quite rightly is leading on the community and economic re-set and recovery. It remains clear, however, that despite these short-term measures there will still be a funding gap for the sector in terms of additional Covid-19 related direct expenditure, enhanced latent demand for critical services and income losses.

“Solace has consistently argued for a sustainable funding settlement for local government which provides the sufficiency, certainty and flexibility to be able to deliver the services for our communities as we re-build a different future together. This simply cannot be short-changed – it’s too important for that.

“We look forward to the forthcoming Spending Review setting out a much more ambitious funding settlement for local government to enable councils to drive economic recovery and address health outcome inequalities across our communities.”