Covid leaves £1M hole in Melton Council’s income

That figure emerged at Tuesday’s cabinet meeting when councillors met to agree their latest budget.

Members approved a package of investment and some service costs for the coming year, and an overall increase in Council Tax of £5 per household for the borough council’s share of the bill.

The final Council Tax figure will be known after a full council meeting on February 24, when contributions set by the county council, police and crime commissioner plus the local fire authority have been added in.

The council’s vital response to the pandemic, which included supporting priority community and business needs, has had a significant impact on both increased expenditure and lost income during the current financial year.

The resulting considerable additional expenditure has only been partly met through government grants and therefore it has been necessary for the council to reduce spending in some lower priority areas to be able to manage its finances.

The authority has seen a total shortfall in income of £1,104,000, mainly due to the impact of the pandemic and the consequent lockdowns imposed by government.

That figure is made up of a number of elements, including the loss of £460,000 from car park season ticket fees, normal visitor tickets and enforcements.

The council has also lost £250,000 in management fees for Waterfield Leisure Centre through its leisure facilities being closed and £109,000 from planning fees due to a pause on development projects.

Due to the pandemic, the government postponed its fairer funding review around how councils are funded in the future, which only increases the uncertainly as it’s likely to have a significant impact on the council’s financial position moving forward.

Councillor Ronnie de Burle, portfolio holder for corporate finance and resources, said: “The council has continued to manage its finances well against a background of reduced core government grants and responding to the impact of Covid-19.

“Looking forward, it is facing a shortfall in funding and also uncertainty around the outcome of the fairer funding review.

“While we remain committed to continue to invest in our priorities, we shall also be working with officers to deliver the savings and efficiencies required to balance the budget in the coming years.

“However, for 2021/22 we are pleased to be able support the delivery of priority initiatives through investment in our town centre and supporting community-based people projects.”

One of the centrepieces of Melton Borough Council’s spending plan, agreed by cabinet members this week, relates to a new town centre strategy and masterplan, to regenerate the local economy and help it recover from the coronavirus pandemic.

The proposed budget also allocates funding for some initial maintenance improvements, including painting the town’s street furniture.

Funding is also being set aside to support residents in hardship through an extended Council Tax relief scheme.

In addition, new investment proposals will help to support improvements to planning services software and for establishing a business case for rail improvements to Nottingham.

The cabinet has also recommended investment in new audio visual equipment to enable live streaming of future ‘in person’ council meetings, infrastructure to support a new council website planned for later in the year, refurbishment of the footstone bridge at Melton Country Park and £100,000 set aside for rural business diversification grants to support the coronavirus pandemic recovery.

The cabinet is also proposing continued significant financial support for council housing services as part of its pledge to tenants.