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Apr 2020

Last Updated: 23/04/2020

Councils expects coronavirus to hit coffers by £75m

by Connor Creaghan

| 23 Apr, 2020

Harrogate Borough Council and North Yorkshire County Council expects the coronavirus pandemic to hit them financially with a combined £75 million budget shortfall.

Senior staff Harrogate Borough Council could be in line for a pay rise.

Harrogate Borough Council and North Yorkshire County Council expect the coronavirus pandemic to hit them financially with a combined £75 million budget shortfall.

The borough council has spent more than £20,000 so far and that is rising on a daily basis with a focus on supporting vulnerable residents.

That money does not include redeployment costs, with many volunteers from the culture, tourism and sports sectors now supporting the waste and recycling centres.

Leader Richard Cooper says Harrogate Borough Council was in a strong financial position before the pandemic and that it is almost impossible to estimate the effects coronavirus will have. According to the council, the vast majority of the £10 million they expect to lose out on will be lost income from leisure facilities, car parks as well as the impact on business rates and council tax income.

“Our cash flow has been hit hard and it is difficult to know the long-term impact of that. What I can say though is that we will continue to prioritise spending on front line services, on our retail centres, on community facilities, on the homeless and those at risk of homelessness and on supporting the voluntary organisations that make our area the special place it is."

Both of the region's councils have recently welcomed an addition £1.6 billion in Government funding to help with the escalating costs of dealing with the COVID-19 crisis.

North Yorkshire County Council believes that its finances would be £65 million worse off before any government grants.

Councillor Carl Les, North Yorkshire County Council’s leader, said:

“The whole of North Yorkshire is pulling together to meet this unprecedented challenge and we are doing everything we can to keep people well and safe and to support the NHS. But we were already operating with reduced spending power so there is no doubt that we like many other councils, will need supportive and long-term partnership with Government for the crucial role we play and to see this crisis through.”