Grave situation of ‘budget hole’
CALDERDALE COUNCIL is facing dark times ahead if it does not get more help to fill a £16 million hole in its budget caused by the impact of the COVID-19 pandemic.
The Council’s Cabinet heard that after Government help already given to offset increased costs and loss of income caused by coronavirus, there is still a substantial gap to be filled if it is to balance its budget.
Government has announced £500 million more will be made available to English councils but Calderdale has not yet been told the formula for how it will be allocated or how much it will get, said Deputy Leader and Cabinet member for Regeneration and Resources, Coun Jane Scullion.
Cabinet approved a threepoint financial recovery plan primarily aimed at making savings – which must be imCabinet plemented as soon as possible – and managing costs, continuing with other local authorities to lobby Government for funds and a third stage involving emergency budget measures if further help is not forthcoming.
This would look to reshape the council towards a “business critical” model, operating only core services it legally has to provide – particularly social care – and Council Leader Coun Tim Swift warned it would affect other services people were used to.
members did not mince their words.
Coun Swift (Lab, Town) said: “I want to reinforce the grave nature of the challenge this creates for the council and its services.”
He added councils would also not know what Government’s new financial settlement for local authorities until the autumn, one of a number of unknown factors which made planning difficult.
Coun Scullion (Lab, Luddenden Foot) said the toughness of the situation should not be underestimated.
“These are very, very dark times – these are really, really difficult times for the council,” she said.
An angry Coun Susan Press (Lab, Todmorden) said Government had stated at the start of the pandemic that it would give councils “whatever it took” to deal with the effects but that had “blatantly” not happened so far.
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