Finance experts have called on the Government to temporarily relax rules that prevent councils borrowing to cover day-to-day spending as they deal with the coronavirus crisis. The latest report from the Institute for Fiscal Studies (IFS) has revealed that, while deprived areas have been badly hit by the virus due to an increase in demand on services, more affluent areas are also struggling due to the sudden drop in income. Councils have said they need a further £3.2bn in funding to support them through the crisis, on top of the £3.2bn they have received so far, but the IFS warns it will be difficult to target funding effectively. IFS associate director, David Phillips, said: 'Big differences in financial risk and significant variation in the reserves councils hold mean the Government should also consider temporarily relaxing the rules that prevent councils from borrowing to cover day-to-day spending.
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