Cash fears over virus discussed
SENIOR COUNCILLORS have been warned the coronavirus crisis could leave Calderdale Council in a parlous financial position.
Calderdale Council’s Cabinet met in virtual form on Mondfay night via the council’s YouTube channel for the first time since in-person meetings were suspended after lockdown and Leader of the Council, Coun Tim Swift said it was estimated the council could be around £36 million short of balancing its budget in 2020-21 because of the pandemic.
Deputy Leader of the Council, Coun Jane Scullion, said Cabinet hoped the council would never get to the position experienced most recently by Northamptonshire two years ago when it issued Section 114 notices curbing all but essential spending, which would have serious consequences for services Calderdale provides.
Coun Swift (Lab, Town) said the crisis was having a twofold effect on budgets, in part due to increased spending, for example providing extra social care support including to providers, and sharp decreases in revenue.
“There is also the loss to income, particularly from sports centres and parking, but also what the likely loss of Council Tax and Business Rate will be as we start to see the economic impact.
“Clearly, we are at an early stage and don’t know how long before the lockdown will be relaxed, but overall costs could be as much as £36 million,” he said.
Government has provided Calderdale with £6.1 million from a national £1.6 billion pot but that would not close the gap and lobbying by all councils nationally meant a possible further £1.6 billion pot would not go far.
“We’re looking at a substantial gap,” said Coun Swift.
A more detailed report from officers will come before Cabinet at its next meeting but councillors needed to turn their minds to how Calderdale managed the situation.
Coun Scullion (Lab, Luddenden Foot) said the importance of councils had been shown through the crisis, being a key component of how Government distributed COVID-19 business grants, for example.
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