Covid crisis hits Herts County Council coffers - with pandemic bill set to cost more than £71m so far

By Layth Yousif 7th Sep 2020

Covid crisis hits Herts County Council coffers - with pandemic bill set to cost more than £71m and counting
Covid crisis hits Herts County Council coffers - with pandemic bill set to cost more than £71m and counting

The Covid crisis has already hit Herts County Council to the tune of more than £70m - with more to come.

Amid soaring Covid-19 costs, expert estimates suggest the bill of the pandemic to the council – in additional expenditure and loss of income – is currently around £71.6m.

Finance chiefs at the county council are already looking for ways to find £20million of savings and efficiencies next year.

Around £54.57m of those costs have been met by central government – with estimates that a further £6m may follow.

But that, says the report, will still leave the council with a shortfall – or 'net pressure' of around £11m.

At a meeting of the county council's resources and performance cabinet panel last Friday, it was reported that £2m of this could be met through underspends in non-Covid budgets.

And in order to balance the council's budget, the entire contingency budget for 2020/21 – set at £9m – would have to be used.

At the meeting, councillors were warned of the 'clear tapering' in government support, financial uncertainty and the "precarious" financial position of the council.

And they were told the "previous approach of unconstrained support for the local community is no longer sustainable".

"A more cautious approach is now required for all future initiatives to support the local community, businesses and key contractors," says the report to the cabinet panel.

"Before additional costs are approved offsetting savings will need to be identified to maintain a balanced budget position."

In addition, amid fears of a "significant" slump in income from business rates and council tax, it was reported that 'further savings and efficiencies' will be required to balance next year's 2021/22 budget.

And at the meting it emerged that council officers are already starting to look at ways to deliver a further £20million 'headroom' in next year's budget.

"The Integrated Planning process has now been started with a plan of creating a list of options capable of delivering an additional £20 million of headroom in the 2021/22 budget," says the report.

"This will be a challenging target to deliver, but it is seen as necessary due to the level of uncertainty surrounding the council's finances and the late Spending Review announcement."

The £71.6m does not include an additional £37.5m of ring-fenced grants from government and health partners, also highlighted in the report.

This includes £18.8m from local Clinical Commissioning Groups, £13.3m from the Infection Control Fund, £4.5m from the Track and Trace Support Grant and £900,000 from the Local Authority Emergency Assistance Grant.

At the meeting Labour councillor Sharon Taylor – who is also leader of Stevenage Borough Council – acknowledged the sums involved were "eye watering".

She asked what representations were being made to government.

Cllr Taylor said there was a need to stress to the government not only the gap in funding but the 'very long lag' between funding announcements and payment, which she said made financial planning extremely difficult.

     

New hitchin Jobs Section Launched!!
Vacancies updated hourly!!
Click here: hitchin jobs

Share:


Sign-Up for our FREE Newsletter

We want to provide hitchin with more and more clickbait-free local news.
To do that, we need a loyal newsletter following.
Help us survive and sign up to our FREE weekly newsletter.

Already subscribed? Thank you. Just press X or click here.
We won't pass your details on to anyone else.
By clicking the Subscribe button you agree to our Privacy Policy.