Crisis leaving Calderdale Council in parlous financial position

Calderdale Council’s Cabinet met in virtual form last night (Monday, April 27) on the council’s YouTube channel for the first time since in-person meetings were suspended after lockdown and Leader of the Council, Coun Tim Swift said it was estimated the council could be around £36 million short of balancing its budget in 2020-21 because of the pandemic.

And Deputy Leader of the Council, Coun Jane Scullion, said Cabinet hoped the council would never get to the position experienced most recently by Northamptonshire two years ago when it issued Section 114 notices curbing all but essential spending, which would have serious consequences for services Calderdale provides.

Coun Swift (Lab, Town) said the crisis was having a twofold effect on budgets, in part due to increased spending, for example providing extra social care support including to providers, and sharp decreases in revenue.

“There is also the loss to income, particularly from sports centres and parking, but also what the likely loss of Council Tax and Business Rate will be as we start to see the economic impact.

“Clearly, we are at an early stage and don’t know how long before the lockdown will be relaxed, but overall costs could be as much as £36 million,” he said.

Government has provided Calderdale with £6.1 million from a national £1.6 billion pot but that would not close the gap and lobbying by all councils nationally meant a possible further £1.6 billion pot would not go far.

“We’re looking at a substantial gap,” said Coun Swift.

A more detailed report from officers will come before Cabinet at its next meeting but councillors needed to turn their minds to how Calderdale managed the situation.

Coun Scullion (Lab, Luddenden Foot) said the importance of councils had been shown through the crisis, being a key component of how Government distributed COVID-19 business grants, for example.

“Our main hope is that we cannot afford to let it fail – we will be lobbying MPs, the Local Government Association, about ensuring we have enough financial security to support local people,” she said.

Liberal Democrat Leader Coun James Baker (Warley) said it was startling how small the amount of money given to councils to help with the crisis was compared to other sectors.

“I am aware that we will have to take some drastic action should that funding not be forthcoming,” he said.

Coun Baker hoped even if that were the case some way could be found of involving the public as much as possible in determining what form services might take.