Virus toll adds to overspending
AUTHORITY CHIEFS have said around £13 million of Calderdale Council’s £17.6 million overspending in 2020-21 is estimated to be due to the Covid-19 pandemic.
A further £1.9 million grant from Government in July took central help for dealing with the pandemic’s impact, including lost income to £13.5 million.
However, the council must also answer to the remaining £4.2 million gap officers and councillors have to turn their minds to, in order to balance the books.
Leader of the Council, Tim Swift said if further help was not forthcoming an ‘emergency budget’ may have to be considered.
“Before the pandemic took hold, Calderdale Council – like other local authorities – was already facing severe financial pressures.
“We’re doing all we can to manage the impact of the virus both on our communities and our budget.
“We’ll continue to closely monitor the council’s financial position, make savings, develop innovative service responses and adapt how we operate where we can.
“However, it’s clear that further government support is required to meet the ongoing financial challenges. If this funding is insufficient, it’s likely we’ll need to identify additional savings, use our limited reserves in the short term and potentially implement an emergency budget,” he said.
Further savings officers think can be made are likely to reduce this figure to £3.5 million – that is the figure which needs to be contained, according to a report to be discussed by Calderdale Council’s Cabinet next Monday. A crunch time will come in September when the current year’s financial position, the need for emergency budget decisions to be made including consideration of a Section 114 notice – meaning the council only running core services.
“Before the pandemic took hold, the council was already facing severe financial pressure.”