Warnings over £16m ‘black hole’
A COUNCIL is still facing a £16 million budget hole because of the pandemic effect, bringing warnings “unpalatable” financial choices will have to be made soon.
Jane Scullion, Calderdale Council Cabinet member for Regeneration and Resources, said councillors would have to make serious choices if the situation remained the same, if no more financial help was given by central Government.
The council’s Strategy and Performance Scrutiny Board was debating the revenue outturn for 2019-20 and the financial situation unfolding during the COVID-19 crisis.
Head of Finance Nigel Broadbent reported the council overspent its budget by £4.2 million last year, the overspend being funded by centrally-controlled underspends, use of some money from central reserves and grants given by the Government to the council to help it cope with the pandemic.
Councillor Scullion (Lab, Luddenden Foot) said: “I know lots of councils are affected in some way by this, but I am optimistic Government will see sense and have a dialogue with us on this.
“That is tempered, because we hope for the best and plan for the worst.
“If help doesn’t come from central Government we will be having to have very, very serious conversations with all members and budget decisions to make that will be very unpalatable for all members and the public.”
Mr Broadbent reported Government had given £11.8 million to the council to help it cope with effects of the pandemic, but there would still be a shortfall projected at around £16 million.
Councillors have previously heard increased social care costs and loss of income ranging from parking fees to leisure centres because of the pandemic were adding up to potential trouble ahead.
Leader of the Council, Coun Tim Swift said at the start of the pandemic councils had been told to spend whatever was needed and they would be reimbursed. “It’s nonsensical, the idea that we could save £16 million without cutting some of the very social care services for keeping people out of hospital – you can’t separate the two,” he said.
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