Fears of £1.35M funding shortfall for Melton council services

Council services in the Melton borough could be facing a funding black hole of up to £1.35million due to the Covid-19 crisis.
Latest council news EMN-200728-121241001Latest council news EMN-200728-121241001
Latest council news EMN-200728-121241001

That is the fear expressed by the borough council unless additional financial support is provided by government to cope with the challenges posed by the pandemic.

The authority may have to dip into its reserves to balance its budget if further funding is not made available because latest estimates indicate a potential unfunded financial impact of between £865,000 and £1.35million.

It is hoped the government will step in to give extra support to local authorities but there is also the prospect of future losses as a result of the difficulty in collecting business rates, Council Tax and any sundry debts as the community recovers from the crisis.

Ronnie de Burle, a member of the cabinet at Melton Borough Council EMN-200728-121310001Ronnie de Burle, a member of the cabinet at Melton Borough Council EMN-200728-121310001
Ronnie de Burle, a member of the cabinet at Melton Borough Council EMN-200728-121310001

The council’s portfolio holder for corporate finance and resources, Councillor Ronnie de Burle, said: “The council has again demonstrated it has a good grip on its finances by ending the financial year with an underspend against its budget.

“However, like with many in our community we face some significant financial challenges ahead as a result of the financial implications of COVID-19.

“We must continue to manage a strong hold on the finances as we move forward if we are to maintain our future financial sustainability.

“Further financial support from the government will be essential to meet our expenditure and income losses and we will continue to lobby to ensure Melton receives the funding it needs.”

At the authority’s latest cabinet meeting, the provisional Outturn 2019/20, which provides an overview of the council’s financial performance over the previous year, shows the council underspent by £496,000 on its Housing Revenue Account - spending on council housing - due to a number of key work streams being delayed.

There was also a marginal underspend on the council’s General Fund, the main account used to provide services to Council Tax payers.

Despite this there continues to heavy pressure on the authority’s budget caused by the challenges of Covid-19.

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