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<p>On 2 July, the Government announced a co-payment scheme to compensate local councils for relevant, unforeseen
sales, fees and charges losses that are irrecoverable. Councils will absorb the first
5 per cent of all relevant, irrecoverable losses compared to budgets, with government compensating councils for
75p in every pound of loss thereafter.</p><p>This scheme is designed to compensate
for transactional income losses that are truly irrecoverable. This will include transactional
income from customer and client receipts which are generated from the delivery of
goods and services and which were budgeted for in 2020/21, including leisure centres,
but excluding rents and commercial investment income.</p><p>Commercial income losses
are more complicated in nature, and the Government recognises that there are a complex
set of variables relating to commercial income sources including recoverability.</p><p>We
are also aware of instances where councils are currently experiencing cost pressures
by supporting local services, such as leisure, which are delivered through contracted
arrangements. We will continue to work with DCMS and councils over the coming weeks
to ensure they are managing as the pandemic progresses. The Government stands ready
to support any local authority with particular financial concerns.</p>
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