Calderdale Council still facing huge £16 million budget gap amid pandemic

Jane Scullion, Calderdale Council Cabinet member for Regeneration and Resources, said councillors would have to make serious choices if the situation remained the same, if no more financial help was given by central Government.

The council’s Strategy and Performance Scrutiny Board was debating the revenue out-turn for 2019-20 and the financial situation unfolding during the COVID-19 crisis.

Head of Finance Nigel Broadbent reported the could overspent its budget by £4.2 million last year, the overspend being funded by centrally-controlled underspends, use of some money from central reserves and grants given by the Government to the council to help it cope with the pandemic.

Earlier in the week the out-turn figures and issues relating to the pandemic had also been discussed by Cabinet.

Councillor Scullion (Lab, Luddenden Foot) said: “I’m an optimist and I know lots of councils are affected in some way by this, some very badly, but I am optimistic Government will see sense and have a dialogue with us on this.

“That is tempered, because we hope for the best and plan for the worst.

“If help doesn’t come from central Government we will be having to have very, very serious conversations with all members and budget decisions to make that will be very unpalatable for all members and the public.”

Mr Broadbent reported Government had given £11.8 million to the council to help it cope with effects of the pandemic, but there would still be a shortfall projected at this stage to be around £16 million.

Figures were refined as time went on and all councils report to the Government monthly – there were a lot of unknowns with two thirds of the additional costs being lost income, he said.

Councillors have previously heard increased social care costs and loss of income ranging from parking fees to leisure centres because of the pandemic were adding up to potential trouble ahead.

Councillors queried areas where savings had resulted and some of the costs

Coun Rob Holden (Ind, Ryburn) asked if the council was due rebate for some recycling services which had not operated and questioned a £600,000 bill for homing 21 people during the pandemic.

Mr Broadbent said that had been contractually committed to but a number of options were being explored.

Board Chair Coun Paul Bellenger (Lib Dem, Greetland and Stainland) said the council should look carefully at procurement as there could be cheaper options.

Leader of the Council, Coun Tim Swift (Lab, Town) said at the start of the pandemic councils had been told to spend whatever was needed and they would be reimbursed, he said.

“It’s nonsensical, the idea that we could save £16 million without cutting some of the very social care services for keeping people out of hospital – you can’t separate the two,” he said.

Coun Bellenger said councillors, officers and staff had risen to unprecedented challenges.

“It is one of my proudest moments that I am a member of this authority in these times.

“It’s hard but we have the tenacity, the vision and the strength to get us through this.

“I am sure we are having a lot of sleepless nights but we will get there,” he said.