Coronavirus: Council services under threat due to Covid-19 impact

That was the message from both Melton Borough Council and Leicestershire County Council this week with the nation into a second month of social isolation ‘lockdown’.

County Hall, which manages services such as education, social care, roads and waste sites, estimates the ongoing pandemic could impact what it does to the tune of at least £50million.

Melton Council, which oversees planning, refuse and recycling collections, leisure, environmental issues, car parks and social housing, fears the virus will cost it in the region of £600,000 over three months, but expects the impact on finances to continue much longer.

The government gave the borough council an initial payment of £23,382 which the authority described as ‘woefully inadequate for the resources required to lead the local response to the crisis and support the community and businesses at this time’.

And this week, a further £506,677 in funding was given to the council from Westminster but the authority says it is still not enough.

Melton Council points out that while most district councils will have received over £1million in Covid-19 funding, the borough’s allocation is significantly below this and that the council has received the lowest amount compared to all district councils across the whole country.

Council leader Joe Orson told the Melton Times: “I am pleased that the government has recognised the vital role districts councils are playing in leading the local response and the huge financial pressure placed upon us at this time through this increased level of funding.

“However, it is clear that much more will be required if we are going to be able to continue to support the local community and local businesses in the way we have without impacting on the council’s other services.

“We will continue to lobby the government for more funding to recognise the key role the council will need to continue to provide at this time and in the future.

“I would like to thank our MP, Alicia Kearns, for her support in getting the message across to the government of the financial support that is required.”

Melton Council was one of the first local authorities to set up a community support hub to help residents get through the coronavirus crisis.

It has also established a business support hub to pay out £11.7million in government funding to help around 1,000 businesses stay afloat while restrictions are in place.

This has all put extra strain on resources, councillors said at last week’s cabinet meeting.

Deputy leader Leigh Higgins highlighted how inadequate the initial £23,000 government funding was to the council.

He told members at the meeting, which was streamed on YouTube because of social distancing restrictions: “This equates to just 45p for every man, woman and child in the borough and it is not enough.”

A report which went before the cabinet stated: “The current estimate is based on major disruption on services for a three-month period followed by a slow recovery thereafter.

“On this basis, the financial impact for the general fund is currently estimated at £590,000, with the majority of this impact being lost income from services such as car parking, planning fees, cattle market, rental income and investment income.

“The additional direct costs that are being incurred include such costs as additional cleaning materials, IT equipment, staffing costs, postage as well as supporting community needs.

“Indirect costs will continue for some time with debt levels increasing and being difficult to recover.”