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02
Jul 2020
Council can 'still balance budget' despite £15m shortfall
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.
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.
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