Devolved administrations to get £1.5bn for Covid-19

THE UK government will provide at least £1.5 billion to the devolved administrations for their Covid-19 response, Her Majesty's (HM) Treasury has said.

The devolved administrations will receive the sum to make sure that they have the resources they need to support people and businesses through Covid-19. With this, they can increase funding for the NHS and provide grants to businesses.

Through the £1.5bn package, the Scottish government will receive £780 million, the Welsh government £475m and the Northern Ireland executive £260m – worked out through the Barnett formula.

This funding is in addition to the UK-wide support that people in all four corners of the country will receive from the UK government.

This includes extending statutory sick pay, making it easier and quicker to access benefits, and providing a business interruption loan scheme, among other measures.

Chancellor of the Exchequer, Rishi Sunak, said: “We will do what is right to help businesses and individuals in every part of the UK. That is why we announced a special funding package at the budget last week to support those affected by Covid-19.

“...I am confirming this additional funding that will ensure the devolved administrations can support vulnerable people, businesses and vital public services, including the NHS, in Scotland, Wales and Northern Ireland.”

This £1.5bn announcement is part of the £12bn response plan announced last week to support public services, people and businesses through the disruption caused by Covid-19.

This included a £5bn Covid-19 response fund for the NHS and public services, a £500m local authority hardship fund, business rates reliefs and £3,000 grants for the smallest businesses -- all of which cover devolved policy areas meaning additional funding is being made available for the devolved administrations.

The UK will continue to work closely with the devolved administrations as the situation develops to ensure they have the funding needed to tackle the impacts of Covid-19.