Friday, 29 May 2020

COUNCIL CHIEF: COST 'BURDENS AND PRESSURES' ARE WEIGHING HEAVILY ON OUR FINANCES

THE impact of the panademic could hit North East Lincolnshire Council's coffers to the tune of almost £16-million in the current year.

The authority is braced for a huge shortfall in  income from unpaid council tax bills, depleted business rate revenue and lost income from other sources such as car parks.

In a report to be considered by councillors at a scrutiny panel meeting next week, chief executive Rob Walsh states: "In total we currently estimate our loss of income to be circa £15.7-million, presenting a significant risk to our business plan and financial resilience."

He continues: "Alongside this loss of income, there are the additional financial burdens and pressures created by the response to the emergency, across all areas including social care.

"These are estimated to be £16.7m and range from responding to pressure created by additional hospital discharge, provider sustainability, increasing costs associated with children at risk or looked after, to pressures created by delays to implementing or delivering savings programmes." 

Along with all other councils, NELC has received substantial grants from Whitehall to tide it over the short-term, but the future financial situation is still of grave concern.

What of recovery?

Pending how lockdown unwinds, the NELC supremo has concluded his statement with a holding comment.

Says he: "We will need to revisit our current business plan, its priorities and programmes to determine the full and detailed extent of the impact of the COVID19 emergency response."

Further updates will be released in due course.

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