LGA forced to pay back £1m in unused grant

By Heather Jameson | 11 March 2021

The Local Government Association (LGA) will have to pay back around £1m in unused cash to central government as part of a deal struck on its top slice funding.

The association was awarded £19.2m in 2020-21 for its sector led improvement. However, the cost of delivery has been cut by the pandemic as there has little in the way of travel and hotel expenses for the past year. That cash will now be clawed back by central government. 

The Ministry of Housing, Communities and Local Government is poised to sign its next annual deal with the LGA, which will see a 10% cut to funding for 2021-22, taking the grant down to £17.3m.

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Finance Local Government Association Improvement Funding