This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities...
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
    • Politics
    • Transport
    • Lifestyle
    • Community
    • Business
    • Crime
    • Environment
    • Health
    • Education
    • Sport
    • Harrogate
    • Ripon
    • Knaresborough
    • Boroughbridge
    • Pateley Bridge
    • Masham
  • What's On
  • Offers
  • Newsletter
  • Podcasts

Interested in advertising with us?

Advertise with us

  • News & Features
  • Your Area
  • What's On
  • Offers
  • Newsletter
  • Podcasts
  • Politics
  • Transport
  • Lifestyle
  • Community
  • Business
  • Crime
  • Environment
  • Health
  • Education
  • Sport
Advertise with us
Subscribe
  • Home
  • Latest News

We want to hear from you

Tell us your opinions and views on what we cover

Contact us
Connect with us
  • About us
  • Advertise your job
  • Correction and complaints
Download on App StoreDownload on Google Play Store
  • Terms and Conditions
  • Privacy Statement
  • Comments Participation T&Cs
Trust In Journalism

Copyright © 2020 The Stray Ferret Ltd, All Rights Reserved

Site by Show + Tell

Subscribe to trusted local news

In a time of both misinformation and too much information, quality journalism is more crucial than ever. By subscribing, you can help us get the story right.

  • Subscription costs less than £1 a week with an annual plan.

Already a subscriber? Log in here.

02

Jul 2020

Last Updated: 01/07/2020
Politics
Politics

Council can 'still balance budget' despite £15m shortfall

by Calvin Robinson

| 02 Jul, 2020
Comment

0

Officials insist that the council can meet a balanced budget, despite facing a £15 million gap in its finances due to coronavirus.

hbccabinet2

Harrogate Borough Council faces “significant detriment” to its finances but can still come up with a balanced budget, say council officials.

Senior councillors on the authority's cabinet signed off on a financial recovery plan last night which will see the authority review its budget and reserves as it faces a £15 million shortfall due to coronavirus.

As part of the plan, council bosses will review the authority’s 2020/21 budget, reserves, investment plans and capital expenditure including borrowing.

Officers are expected to report more on the council’s financial position once the reviews are complete and bring them before future cabinet meetings.




Read more:



  • Council misses debt recovery target by more than half

  • New budget amid coronavirus costs ‘not necessary’, says council

  • County council needs more funding to tackle future coronavirus costs






It comes as councils across the UK are warning that some may have to issue section 114 notices – an emergency measure in dire financial circumstances – and potentially cut services to deal with the financial gaps.

Other authorities, such as Leeds City Council, have warned of that the crisis would leave them with no choice but to cut frontline services if no financial backing is given by government.

But Paul Foster, the council’s head of finance, assured senior councillors that the authority was not at the stage of putting together an emergency budget and that it still thinks it can meet a balanced budget.

He said: “It will come as no surprise that the council will be faced with significant financial detriment as a result of covid-19 as many other organisations are.
“The financial implications are challenging to estimate with certainty as the number of unknowns to how long lockdown will continue and what will recovery look like.
“I am pleased to say at this stage we are not at that position, we still think that we can balance the budget for this year. 
“I am not contemplating issuing a section 114 notice and we are also not looking to do an emergency budget.
“Only if we get to the stage that we need to issue a section 114 notice would we consider any more severe restrictions on spending.”


Mr Foster added that the council had faced additional costs in responding to the crisis on IT and homelessness and lost income on the convention centre, parking and leisure services.

However, Cllr Graham Swift, cabinet member for resources, said the council was in a better position than others and the authority had been “prudent” with its investments.

He said: “We are going to be impacted by a variety of lost revenues in car parks, pools and other things that generate money for us.
“But the reality is that we are not exposed with the risk profile that some very significant large and small councils around the UK are engaged in.
“I think it’s a testament to our council have put our finger in the pie in investment, but we have done it prudently and with a balance risk approach which is frankly paying off at this stage.”