New budget will safeguard against Covid's lasting legacy

In new draft budget report the council set out its forecast for the coming year and for years to come.

Cabinet member for finance, Pauline Church, said: "The report sets out that the2021/22 budget is balanced, but that we have been impacted by Covid-19, such as an estimated loss of £4.5m in revenue from parking and leisure.

“In addition the level of council tax receipts has also been impacted, and the government have mandated that we can spread the deficit that arises over three years – we have prudently set aside money to cover the loss in full.”

The financial impact of Covid will be felt in the budget

In the coming years, by 2024/25 the council’s medium term financial strategy the budget report predicts a funding gap of £71.122m.

Cllr Church said that planning for the 2022/23 budget – when the gap is forecast to be £45.512m – will begin this summer.

She said: “As stated in the report, planning for the 2022/23 budget will have to begin early to ensure there is enough time to build in the necessary changes as well as reflecting the latest position as a result of the pandemic.

“A key aspect will be the Government’s funding to local councils, which at this stage is currently uncertain.”

But how will would affect the council’s services or the future of its capital programmes? Cllr Church said this was impossible to say at the moment, due to the ever-changing landscape of the pandemic.

“ We will be more informed following the review of the position in summer 2021.

“We have always been diligent with our finances and that ensures we have a strong foundation in place to deal with the unexpected.”

According to the council, the £29.422m budget gap predicted in November will be balanced for the current financial year.

The budget warned that financial planning for the coming years will need to begin sooner than it would be in normal times. The council expects talks between the cabinet and the leadership team to begin in the summer.

Addressing the overview and scrutiny committee this week, leader of the council, Philip Whitehead said the local authority had taken on responsibilities in the past year, he never thought it would.

He said that the draft budget was a safe base but would safeguard the council against legacy issues due to the pandemic including mental health and financial pressure on residents.

Cllr Whitehead said: “We have not only got to deliver a balanced budget this year, but set a budget for next year that allows us not to know everything that is going to happen next year.

“Not to know what the size of the tsunami of problems coming towards us is, but to be able to cope with whatever it is.”

Council leader, Philip Whitehead says the 2021/22 budget will help the local authority cope with a tsunami of problems not matter what size as the pandemic continues

Cllr Church, said the council tax hardship fund would increase six-fold under the budget to support families going through difficult times.

While some loss of income is expected for the authority as the pandemic continues to affect areas such as leisure and car parking, an assessment on changes in behaviour going into 2021/22 will see budgets reduced by between 10 and 30 per cent in some services with an impact of £4.4m.

The council expects additional pressures from Covid-19. One example given in the budget was the cleaning of council buildings, which resulted in a £4.9m demand.

The draft budget is due to go before full council for approval on February 23.