The coronavirus crisis could leave Bath and North East Somerset Council £53million in the red.
Leader Dine Romero said the extra £4.6million set to come from Government is welcome but goes “nowhere near” filling the forecast deficit on its £120million budget.
Councils across the country are seeing massive spikes in demand at the same time as their income has been slashed – B&NES Council normally gets huge payouts from its commercial estate and tourist attractions like the Roman Baths to fund frontline services.
Other authorities have warned that the pandemic is pushing them to the brink of financial failure.
Council finance chief Richard Samuel tweeted that its situation is “very serious” and the government “needs to meet all costs”, echoing the Local Government Association’s calls for a “cast-iron guarantee”.
Dine Romero said: “Government has announced an extra £1.6billion funding for councils to address the additional costs of Covid-19.
“However, if this is shared out as before we would receive an additional £4.6million.
“While this is welcome it goes nowhere near the funding we are going to require to meet our projected pressures in the new financial year.
“The current reality is that we face a predicted £53million deficit on our £120million budget.
“Our position is more challenging than other councils as our budget is supported by income generated from our commercial estate and tourist attractions such as the Roman Baths.
“We are talking to the government about this and are also working on a recovery plan to help Bath and North East Somerset get back into business which we will report back on as we progress.”
Richard Watts, who chairs the Local Government Association’s resources board, said: “Local government continues to step up to the unprecedented challenge we face as a nation. It will do everything it can to help residents and businesses but is being stretched to the maximum.
“Many councils are facing increased cost and demand pressures at the same time as seeing a significant drop in income. This is unsustainable and pushing councils towards financial failure.
“It is good that the Government has moved to provide some financial help to councils. Additional funding is urgently needed to help councils get through this crisis, support the vulnerable and adapt to life once we defeat this virus when our local services will be needed more than ever to help communities rebuild.
“It would be wrong and unacceptable if councils are then forced to make further cutbacks to the very services that will have helped the nation through this crisis and the key workers who are producing heroics on the frontline see their jobs placed at risk.”
Stephen Sumner, Local Democracy Reporter
You can find the latest coronavirus information, advice and community updates for the Bath & North East Somerset area on our dedicated live blog here.
