Financial impact survey

NALC has gathered evidence on the  financial impact of the coronavirus on local councils . This information is vital to our representation to the government on the loss of income to local councils during these difficult times, and the need for a tailored financial support package for the local council sector. A short survey was sent to local councils and NALC’s Super Councils Network to complete. We are also working with county officers on a separate survey on the financial impact on county associations.

Supporting communities

Local councils are ideally placed to inform and support residents as they already do in so many spheres — from assisting during flooding and other emergencies to supporting vulnerable or lonely people. And this will almost certainly be the case in the current situation. Cllr Sue Baxter, chairman of NALC, met Nigel Huddleston MP (DCMS minister and their representative on COBRA) on NALC’s Lobby Day on 10 March, who saw a potentially big role for parishes during the current period, including keeping an eye on vulnerable people and encouraging new volunteers to come forward to help.

NALC has also engaged with PHE and communicated the desire from local councils to support their communities and the need for information on how best to do this within the scope of government advice on social distancing. PHE is launching further guidance to support community activities next week which we will share widely.

We know already the coronavirus has affected every community in a multitude of ways, with local councils doing a brilliant job in difficult circumstances. Playing their part to support the community and its residents, businesses, and groups at this challenging time.

Such as Woodbridge Town Council in Suffolk, which has set-up an emergency response group of councillors and volunteers which will assist with collection/delivery of medicines, shopping, walking the dog or simply being a voice at the end of the phone, and Hagley Parish Council in Worcestershire, which is acting as an information hub and plans to publicise restaurants offering a delivery service and contact details for NHS helplines. And Backwell Parish Council, Somerset, has a dedicated team of over 30 volunteers who can organise to have someone check in regularly with the elderly or at high-risk either by phone, Skype or FaceTime.

You can read more about their work, and that of other local councils, in our newly published Coronavirus case studies publication.

Useful national resources for supporting your community

• On 26 March, the government produced information on how to help people safely.
• Public Health England has also produced a range of material to support the Stay Home, Save Lives' campaign which is free to download and use.
• NHS England has launched a national volunteer initiative which you can share with your residents.
• The British Red Cross also has a number of volunteer schemes to help communities in emergency situations.
• Communities Prepared has created free training resources for volunteers and local groups wishing to support their communities during the pandemic — they also provide free training and resources around wider emergency preparedness too.
• NALC partners, Parish Online, has published information on how digital mapping can help local councils support their communities during this crisis. To support local councils at this time Parish Online is offering a 30-day free trial to new subscribers.

Local council meetings

NALC strongly advises local councils to continue to meet remotely, without the need for face-to-face contact.

Local councils have the powers to hold public meetings remotely by using video or telephone conferencing technology currently until May 2021 and are advised to make use of those powers. There is an intrinsic risk to everyone attending a face to face meeting at this time. In particular, local councils have a duty to allow the public to observe council meetings without placing restrictions on the number attending, which many council meeting venues will not be able to accommodate in a safe way at this time.

Remote meeting regulations

On 12 August, Simon Clarke MP wrote a letter to NALC to thank all organisations across local government that “have responded so magnificently to the challenge of ensuring that vital council business continues by conducting your council meetings remotely”. The letter also provides information on changes to the regulations that affect Parish Meetings

On 2 April, the government published The Local Authorities and Police and Crime Panels (Coronavirus) (Flexibility of Local Authority and Police and Crime Panel Meetings) (England and Wales) Regulations 2020. These regulations came into force on 4 April.

NALC has also responded to the government, feeding back issues relating to the regulations – this information can be found in the engaging with government section.

Understanding the regulations:

• NALC has a legal briefing on our interpretation of the regulations

Guidance for holding meetings remotely:

• NALC has produced guidance for local councils on how to hold effective remote council meetings. This also includes information on how to approach hybrid meetings, where some individuals attend in person and others join remotely.
• Northamptonshire County Association of Local Councils has created a video to demonstrate what a virtual meeting of (the fictional) Great Pipping Parish Council would look like. It is a training video designed to show how a chairman would deal with councillors joining by computer and phone, declarations of interest, public participation and confidential items where members of the public and press are excluded.
• The National Centre for Cyber Security (NCSC) has issued updated guidance to help individuals and organisations choose, set up and use video conferencing safely and securely.
• We have received a large number of queries related to Zoom. If you do choose to use Zoom, there is a range of free information and training to help people use the platform which is definitely worth having a look at to help get you started. A recent update on the Zoom blog has been guidance on hosting public meetings including how to keep uninvited guests out of your meeting.

Health Protection Regulations and council meetings

The Health Protection (Coronavirus, Restrictions) (No. 2) (England) Regulations 2020 (“the 2020 Regulations”) were made on 3 July and came in to force on 4 July. 

The 2020 Regulations refer to gatherings in private dwellings, vessels and land that is a public outdoor place. No more than 30 persons can participate in a gathering in such places. Public bodies are able to exceed the 30 person gathering restriction in premises used for the operation of a public body if certain conditions are met. They are:

• the gathering has been organised by the public body;
• the person responsible for organising the gathering has carried out the requisite risk assessment (which would satisfy the requirements of regulation 3 of the Management of Health and Safety at Work Regulations 1999), and;
• the gathering organiser has taken all reasonable measures to limit the risk of transmission of the coronavirus, taking into account the risk assessment.

In determining whether all reasonable measures have been taken to limit the risk of transmission of the coronavirus, any guidance issued by the government relevant to the gathering in question must be taken into account.

NALC’s view of the 2020 Regulations is that (i) public body can include parish councils and parish meetings and (ii) they do not prevent gatherings of more than 30 people (indoors or outdoors) if the above conditions are met. However, NALC remains of the view that remote meetings are the best way of holding meetings at this time.

The above guidance applies until the further direction of the Secretary of State and the Regulations will be reviewed every 28 days.

Impact on year-end accounts and audit

Following NALC’s engagement with government around local council audit timeframes final regulations were published on 7 April and will come into force on 30 April. These extend the statutory audit deadlines for 2019/20.

The Joint Practitioners Action Group (JPAG) has produced updated flow charts and step-by-step guides related to the changes to audit time frames. These can be found on our JPAG webpage.

We are pleased the government has listened to the sector and recognises the need for an extension to the timeframes for audit. This extension is for two months and not the minimum of at least three months which NALC called for in our response to the consultation on the draft regulations.

On 22 April, Max Soule, Deputy Director, Local Authority Accountability and Oversight at MHCLG has emailed a letter to all local authority chief executives in England, confirming the extended audit deadlines for 2019/20, just in case they were not aware through other sources. The letter is also being published on GOV.UK to ensure that it is in the wider public domain.

Will elections be affected?

The Coronavirus Act, which the government introduced on 19 March, postpones any elections that were due to be held in May 2020 until 6 May 2021. Any other electoral events, such as the council or parliamentary by-elections, will also be postponed until May 2021.

NALC has published a legal briefing, which gives guidance on the implications for local councils of the Local Government and Police and Crime Commissioner (Coronavirus) (Postponement of Elections and Referendums) (England and Wales) Regulations 2020. This includes commentary on the prohibition on holding elections to fill casual vacancies until 6 May 2021.

On 13 January 2021, Cabinet Office minister, Chloe Smith MP responded to an urgent question in the House of Commons and confirmed May’s local elections will go ahead as planned, but this would be kept under review. NALC has asked the government to make a swift decision should this situation change.

Government engagement

NALC is continuing to engage with the government, and other stakeholders such as the LGA and PHE, on how local councils are responding to the current public health crisis, and raising issues regarding any impact on the operation of our local councils.

The fast-tracked Coronavirus Bill was considered by the House of Commons on 23 March and House of Lords on 24/25 March. It has now received Royal Assent and is an Act of Parliament. Provisions of particular relevance to local councils are on the postponement of local elections and local authority meetings. We are pressing the Ministry for Housing Communities and Local Government (MHCLG) to work with us on any subsequent regulations. We don’t have the timeframe for those at present but will keep you updated.

A summary of issues which we have been raising with MHCLG, including those which relate to the Coronavirus Act, include:

• Holding of statutory meetings (such as annual parish meeting and the annual council meeting) – We are communicating the concerns that councils have around their ability to hold meetings within the statutory deadlines.
• Audit deadlines — We are communicating the concerns that local councils have around their ability to hold meetings within the statutory deadlines.
• Local elections — With the postponement of local elections we are seeking clarification on the implications of this, including on by-elections and neighbourhood planning referendums.
• Democratic decision-making (e.g. if councils are unable to be quorate for an extended period of time) — We are communicating the difficulties that councils are experiences or expecting, this includes the question of phone/online attendance.
• Public Works Loan Board – We have sought clarification on whether repayments would be subject to deferral in keeping with other measures announced regarding mortgages and loans.

On 16 March, local government secretary Robert Jenrick MP addressed over 300 council leaders and sector bodies in a call on the government’s response to coronavirus. He reaffirmed the government’s commitment to supporting councils to focus their efforts on the priority area of social care, providing vital support for vulnerable people and supporting their local economies — read the full press release on MHCLG’s website. NALC is still pressing for clarification on how some of these changes not covered in the Coronavirus Act will be applicable to local councils.

On 30 April, Robert Jenrick MP, secretary of state for Housing, Communities and Local Government, wrote a letter to town and parish councils thanking them for their work supporting communities during this pandemic. Cllr Sue Baxter, chairman of NALC, responded saying “I am pleased the local government secretary has acknowledged and praised the fantastic response from local (parish and town) councils across England in supporting their communities during this pandemic. I welcome the recognition of the financial challenges facing local government and the need for support. We will continue to discuss how best to address this with the government and the Local Government Association.” 

NALC will continue to engage with the government on these issues.

Accounts and Audit (Coronavirus) Amendment Regulations 2020

On 6 April, the government brought regulations into force to change audit deadlines – you can read more in the local council activity and operations section.

On 30 March, NALC responded to proposed regulations from the government which would extend the deadline for the inspection/publication requirements in the Accounts and Audit Regulations 2015. Their communication stated that at that point the government was not currently planning to amend the requirements for smaller authorities. NALC has undertaken a rapid engagement exercise seeking input from the local council sector, including representatives from different sizes of local councils, county associations, SLCC, and also from the Association of Drainage Authorities and National Audit Office.

Read NALC's response on behalf of the local council sector

Local council meetings

On 2 April, the government published The Local Authorities and Police and Crime Panels (Coronavirus) (Flexibility of Local Authority and Police and Crime Panel Meetings) (England and Wales) Regulations 2020. On the same day, NALC wrote to the government to feedback issues and queries related to the new regulations — read NALC’s comments on behalf of the local council sector.

Psychological first aid training

Front line staff and volunteers at the forefront of the coronavirus response across England will be able to access a new Psychological First Aid (PFA) training course developed by Public Health England. The free online course teaches responders how to give practical and emotional support on issues such as job worries, bereavement or isolation to those affected by COVID-19.

Coronavirus Job Retention Scheme

The government have introduced a scheme to allow some employers to furlough certain members of staff and reclaim a proportion of their salaries — find out more about the scheme.

The government's Coronavirus Job Retention Scheme is available to public sector organisations and the guidance states that "the government expects that the scheme will not be used by many public sector organisations, as the majority of public sector employees are continuing to provide essential public services or contribute to the response to the coronavirus outbreak".

NALC feels that the government guidance at this point is not clear on whether local councils could reclaim salaries from furloughed employees or not. We have continued to seek more detail from the government to clarify this situation.

It would appear to be possibly relevant for those staff whose jobs have fallen away as a result of the restrictions being put in place to fight COVID-19 and where they cannot be reallocated to other roles. At the heart, the Coronavirus Job Retention Scheme is to help avoid redundancies. For example, where a local council has community facilities that have been closed as a result of COVID-19, there will be no income from these facilities to pay for the caretaker or other staff who run the facilities.

So where local councils have staff who are unable to work in their current roles, where that role is funded from income other than precept, and they are unable to be redeployed to another role to support the response to coronavirus, the council may wish to consider furloughing those staff with the hope of being able to reclaim a portion of their salaries. But at this stage, while NALC could not be certain that the council would be successful in claiming back that salary, we are hearing from councils that have been successful in applying. Therefore if councils believe it is appropriate to apply then they should consider doing so.

The government has opened applications to the Coronavirus Job Retention Scheme and produced guidance to support organisations who wish to make a claim through this scheme.

If a local council is considering furloughing any staff then NALC and HR Service Partnerships (HRSP) have produced template letters for members to aid this process.

Template letter asking to be furloughed

Template letter to confirm furloughed arrangements

HRSP has also uploaded FAQ’s on their website this morning with the latest updates on the scheme.

Furlough fraud

There have been recent headlines about a crackdown on furlough fraud. This tends to focus on employers who have provided inaccurate or false information, or who have then broken furlough rules – in the main by having furloughed staff continue to work. 

HMRC does allow organisations to ‘correct’ any over or underpayment. The period of time in which employers can correct any errors and amend claims under the Coronavirus Job Retention Scheme without incurring penalties has been extended to:

• 90 days after the day on which the Finance Act 2020 was passed (22 July 2020); or
• 90 days after the day on which the income tax on the payment made becomes chargeable,

whichever is the later. The previous period was 30 days.

Councils should be advised to only provide accurate and true information when applying for furlough and to stick within the stated rules of the scheme. If they realise they have made any errors in their claims they should correct this as quickly as possible.

For councils that have successfully claimed under the furlough scheme

HMRC also provide information on what you must do following a successful claim which includes the following information:

Once you’ve claimed, you’ll get a claim reference number. HMRC will then check that your claim is correct and pay the claim amount by BACs into your bank account within 6 working days.

You must:

keep a copy of all records for 6 years, including:

• the amount claimed and claim period for each employee
• the claim reference number for your records
• your calculations in case HMRC need more information about your claim
• for employees you flexibly furloughed, usual hours worked including any calculations that were required
• for employees you flexibly furloughed, actual hours worked
• tell your employees that you have made a claim and that they do not need to take any more action
• pay your employee their wages, if you have not already
• You must pay the full amount you are claiming for your employee’s wages to your employee.

You must also pay the associated employee tax and National Insurance contributions to HMRC, even if your company is in administration. If you’re not able to do that, you’ll need to repay the money back to HMRC.

You must also pay to HMRC the employer National Insurance contributions on the full amount that you pay the employee. If you have submitted a claim for the employer National Insurance contributions and pension contributions, then the full amount you claim in respect of these must be paid or you will need to repay the money back to HMRC.

Employers cannot enter into any transaction with the worker which reduces the wages below the amount claimed. This includes an administration charge, fees or other costs in connection with the employment. Where an employee had authorised their employer to make deductions from their salary, these deductions can continue while the employee is furloughed provided that these deductions are no administration charges, fees or other costs in connection with the employment.

Getting tested

The government guidance on getting tested for COVID-19 is available which includes information on who would be regarded as an essential worker and so be prioritised for testing. On 1 May, Robert Jenrick MP wrote to all local government employees in England thanking them for their support during the pandemic, and outlining how staff can get tested.

Homeworking

As an employer, if the council provides homeworking expenses for your employees, you have certain tax, National Insurance and reporting obligations. The council as the employer is has the same health and safety responsibilities for staff working from home as they do for those in an office. The Health and Safety Executive has useful information that could inform your approach.

HR-related issues

NALC's partner HR Services Partnership are keeping their website updated with issues related to the coronavirus.

National Joint Council guidance on working from home

On 17 March the National Joint Council for local government services has issued guidance for councils and council staff on working from home.

Statutory Sick Pay

The Statutory Sick Pay (General) (Coronavirus Amendment) Regulations 2020 were made on 12 March 2020 and came into force on 13 March. They amended the Statutory Sick Pay (General) Regulations 1982 and provide that statutory sick pay will be available to anyone isolating themselves from other people in such a manner as to prevent infection or contamination with coronavirus disease, in accordance with the guidance published by Public Health England, NHS Scotland or Public Health Wales and effective on 12 March 2020, and by reason of that isolation is unable to work. The government has said that the Statutory Sick Pay will be payable from the first day (not, as previously from day four) and that employers with fewer than 250 employees will be able to reclaim the cost from the government up to a maximum of two weeks’ Statutory Sick Pay.

The Secretary of State is required to keep the operation of the Regulations under review and they will cease to have effect eight months after they come in to force.

NHS Test and Trace

On 18 September 2020, new regulations came into force making it a legal requirement for venues to log details of visitors, customers, and staff. Local council venues and buildings that allow public access or bookings must:

• Have a system in place to request and record contact details of their customers, visitors and staff
• Register for an official NHS QR code and display the official NHS QR poster from 24 September 2020

The NHS has provided more information on the QR code and posters for organisations, as well as further information on the NHS COVID-19 app.

Collecting contact details and maintaining records for NHS Test and Trace is a legal requirement and failure to comply is punishable by a fine.

Government guidance

The government has produced:

• Guidance for the safe use of multi-purpose community facilities
• Guidance for the safe use of council buildings
• Guidance on the phased return of sport and recreation
• Guidance for the owners and operators of urban centres and green spaces to help social distancing
• Guidance for people who work in grassroots sport and gym/leisure facilities

Play areas

We had positive discussions with MHCLG colleagues on recent government guidance on managing playgrounds and outdoor gyms. NALC and SLCC welcome API's guidance that provides practical steps for playground operators. It refers to the government guidance and sets out examples of practice that may be appropriate for local (parish and town) councils or other owners and operators to consider.

BHIB Council’s Insurance have produced  guidance on re-opening playgrounds  plus a set of templates to help councils risk assess play areas (available above)

RoSPA has also provided additional information to complement government guidance.

Shrewsbury Town Council has produced a template poster for playground signage that any local council can use.

Multi-purpose community facilities

The government has produced guidance for the safe use of multi-purpose community facilities and guidance for the safe use of council buildings which include what activities can take place and what practical steps can be taken to manage risks.

Risk assessment for COVID-19

NALC and BHIB Councils Insurance have produced a new guide on risk assessment for COVID-19. The guide features guidance and information to help make risk assessments and directs to useful resources from the government and the Health and Safety Executive, with specific details on how to adapt your risk assessments for COVID-19. The guide also contains two templates designed especially for local councils that will help start risk assessments.

Read the Risk assessment for COVID-19

Templates are available for:

• Council reopening checklist
• General workplace risk assessment
• Reopening toilets — download the editable version
• Play areas and outside gyms — download the editable version

Further advice

There is a range of organisations producing information to help manage facilities and public spaces:

• On 3 June, CFP published a guide to managing public parks during COVID-19. This includes specific sections related to car parks, children’s play areas, outdoor gyms, ball courts, sports activities, public toilets, cafes and visitor centres.
• The Lawn Tennis Association has produced information related to tennis activities during COVID-19.
• Skateboard England has produced a set of guidelines for skating safely.
• The Visitors Safety Group have produced guidance on work practices for landowners and countryside managers.
• The National Allotment Society has issued useful guidance on how to manage allotments in accordance with government regulations.
• BHIB Councils Insurance has developed advice on expectations of local councils regarding playgrounds and outdoor fitness equipment.

Support to help high streets

The High Streets Task Force, an alliance of place-making experts that provides encouragement, tools and skills to help communities and councils transform their high streets, have launched a range of support for high streets in England.

The support, which is available to local councils and all organisations involved with high streets, includes free access to online training programmes and webinars, as well as data and intelligence on topics including recovery planning and coordination, public space and place marketing.

Coronavirus and cybersecurity

The National Centre for Cyber Security has launched a campaign geared towards the public during COVID-19 times. This includes useful best practice we can all be following at work, but also it is useful information to share with residents.

Two of NALC’s partners have also provided advice for local councils on cybersecurity:

• Microshade has provided additional advice for local councils as fraudsters are exploiting the spread of coronavirus to facilitate various types of fraud and cybercrime.
• BHIB Councils Insurance has developed cybersecurity tips to help keep local councils and their staff to stay secure and keep online data safe.

Data protection and GDPR

On 12 March the Information Commissioners Office (ICO) released a statement to reassure organisations seeking to support their communities at this time. It includes this information:

"Data protection and electronic communication laws do not stop Government, the NHS or any other health professionals from sending public health messages to people, either by phone, text or email as these messages are not direct marketing. Nor does it stop them using the latest technology to facilitate safe and speedy consultations and diagnoses. Public bodies may require additional collection and sharing of personal data to protect against serious threats to public health.

The ICO is a reasonable and pragmatic regulator, one that does not operate in isolation from matters of serious public concern. Regarding compliance with data protection, we will take into account the compelling public interest in the current health emergency.”

To support this statement the ICO has also produced further guidance around data protection and coronavirus.

Local death management powers

The government has produced statutory guidance issued under s.58 and Schedule 28 to the Coronavirus Act 2020. The 2020 Act introduced new powers for local authorities and government to support the resilience of local death management systems, and step in if they become overwhelmed.

Parish councils are excluded from the definition of the local authority for the purposes of s.58 and Schedule 12 to the 2020 Act. Their role as burial authorities is recognised. Essentially the role of parish councils under the 2020 Act is one of co-operation should they choose to do so:

• The powers in Part 1 of Schedule 28 enable local authorities to require persons and national authorities to provide information to assist those authorities to ascertain the capacity to deal with transportation, storage or disposal of dead bodies and other human remains in a particular area or nationally. The guidance on Part 1 confirms that parish councils “are not included in the definition of what constitutes an English local authority. However, as parish councils are often burial and/or cremation authorities, they may cooperate with local authorities to ensure appropriate death management occurs”.
• Part 2 of Schedule 28 gives powers of direction to local and national authorities in order for them to manage capacity in the death management system. The guidance on Part 2 provides that parish councils “are not included in the definition of what constitutes an English local authority. However, as parish councils are often burial and/or cremation authorities, they may cooperate with local authorities to ensure appropriate death 

Neighbourhood planning

The government has provided guidance where the coronavirus situation impacts on neighbourhood planning including the referendum process, decision-making, oral representations for examinations, and public consultation — find it by scrolling to the very bottom of the neighbourhood planning guidance.

The recently published issue of NALC’s flagship magazine, LCR, features a coronavirus-themed special section. 

As local councils stepped up to help the vulnerable in their communities at the outset of the pandemic, there was clear evidence that the magazine could provide some must-read practical tips to local councils and also present some great leadership cases studies. 

So, in this issue, there are coronavirus features on: 

• how local councils can manage their volunteers; 
• how they have been responding to, and leading on, the pandemic;
• how they can keep their momentum going while working from home.

But please do read the rest of the magazine, which puts a spotlight on those councillors, councils and county associations doing excellent work. It also gives information and advice and guidance on a range of topical issues – from actions being put in place to speed up rural mobile coverage, to advice on how to get to grips with the new web accessibility regulations.

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