West Berkshire Council 'has enough funds in place' to deal with impact of Covid-19

Government grants have helped council deal with pandemic

WEST Berkshire Council says it “currently has the funds in place” to deal with the financial impact of Covid-19 – but has not ruled out having to use emergency reserves beyond the end of July.

It has been widely reported that councils across the UK are struggling to manage the additional demands on their services and that some are considering issuing a Section 114 notice to Government.

Local authorities may issue such a notice only when the chief finance officer (CFO) judges that the council is unable to set or maintain a balanced budget.

They are rarely used, with the most recent case being Northamptonshire County Council in 2018.

West Berkshire Council has received £7.6m in non-ring-fenced funding to support its efforts in respect of the Covid-19 response.

It says that this funding has, among other things, enabled it to support adult social care, continue to deliver vital services, create the Community Support Hub and distribute laptops for more disadvantaged pupils.

In addition, the council has received other targeted funds, including £29m for business grants as well as funding to help the district’s high streets to re-open safely, to eradicate homelessness and to support its public health obligations.

With social distancing guidelines being relaxed and many pubs and restaurants starting to reopen from Saturday, some of the financial pressures the council has faced are expected to reduce, including falls in income from planning fees or car parking.

Furthermore, as infection rates drop, a reduction in additional adult social care demand, which has seen the largest additional financial cost, is expected.

West Berkshire Council leader Lynne Doherty said: “In recent weeks, we have been asked, as have councils across the country, whether we will be issuing a Section 114 notice in response to the additional Covid-19 costs.

“I am pleased to advise that this is not something West Berkshire has had to consider at this time.

“At the start of the pandemic, it was made very clear to me by the Ministry of Housing, Communities and Local Government (MHCLG) that the financial support we needed to cope with its impact would be made available to us.

“To date, this has been proven to be the case and we are confident that the funding we have received so far will last until at least the end of July, at which point we may have to consider the use of our reserves.

“We have put the funds we have received to good use as part of our response and are able to continue to offer support to those in need whilst providing local services.

“We have recently completed a third financial return for government and expect to receive a further funding update in the coming weeks.

“The long-term impact of Covid-19 is not yet clear, as much will depend on the local and national economic recovery efforts.

“We will continue to monitor the financial impacts of Covid-19 and look forward to receiving further funding from Central Government.

“We believe, however, that we have the budget and emergency reserves in place to support our services in the short term and that we do not need to consider a S114 notice at this time.”