COVID-19 has hit Calderdale Council’s finances ‘like a tsunami of horror’

Calderdale Council’s fast-changing financial situation through the coronavirus pandemic is bad enough as a “snapshot in time” but is likely to get worse, councillors were warned.

Coun Jane Scullion told Cabinet colleagues the pandemic had brought increased costs and vastly reduced income.

Government help for the pandemic would cover around £13.6m of an estimated £17.7m budget deficit this year and of the remainder the council needs to find around £3.7m in savings.

But lost revenue, including an estimated £10m in lost Council Tax and Business Rate due to COVID-19, has implications for budgets for a number of years to come, she said.

Adding to the uncertainty was council’s waiting on a local government spending review which was expected from Government in the autumn.

Coun Scullion (Lab, Luddenden Foot), who is the council’s Deputy Leader and has the Cabinet portfolio for Regeneration and Resources, said: “I suspect it is going to get worse.

“If things are as bad as they appear to be becoming we will be moving to a business critical model,” she said.

This would mean the council only running core services which it has to provide by law and the seriousness of the position.

By September it should be clear whether an emergency “business critical” only budget will be needed, she said.

Coun Susan Press (Lab, Todmorden) spoke about income lost through not being able to run some of its services because of COVID-19.

Not being able to open leisure centres, for example, was resulting in a £7.6m financial hit.

Cabinet approved a range of measures to reduce the deficit as much as possible.

Coun Scullion said every single line in the budget would be “interrogated” to maximise savings and the aim was to contain costs caused by the pandemic within funding given by the Government to compensate.

The council would have to look at which services it can re-open, which it can pause – and which are not going to be able to re-open, she said.

“I sound like Job, but really, really this is very serious for the council.

“At the moment relief is not in sight,” she said.

Coun Press said it seemed as if Cabinet had been speaking this message for a long time, but the effect of the virus on planning should not be underestimated.

“We are in completely unknown territory.

“COVID-19 wasn’t on the horizon when we were discussing our budget decisions at the back of last year.

“It has hit us like a tsunami of horror,” she said.

Income from libraries, parking, swimming pools, leisure centres and other public services was unavailable to the council.

“The picture in many ways couldn’t be bleaker and it is important all members understand the position we find ourselves in,” she said.

Conservative Group Leader Coun Steven Leigh (Con, Ryburn) asked if an interim meeting before September would allow for further actions to mitigate the situation.

Coun Paul Bellenger (Lib Dem, Greetland and Stainland) was concerned about the impact major company staff not returning to their Halifax town centre offices might have on Calderdale’s economy.