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Apr 2020

Last Updated: 19/04/2020

Politics

North Yorkshire County Council has funding gap of £50m to fight covid-19

by Tamsin O'Brien

| 19 Apr, 2020

North Yorkshire County Council welcomes an announcement more money is coming but says the cost of fighting the crisis is rapidly accelerating

North Yorkshire County Council says it welcomes a government announcement that an extra £1.6billion is to be allocated to local councils with the rapidly accelerating cost of fighting covid-19.

The council said its estimated costs for coronavirus showed that finances would be £65m worse than had been anticipated before the pandemic. Whilst £15m had been provided by government as additional grant, it left a shortfall of £50m.

The Leader of the county council, Carl Les said:

“We don’t yet know the size of this additional allocation for the County Council but this extra funding will undoubtedly help to bridge the gap. Nevertheless, we still face massive financial challenges and we estimated that the original allocation of £15m of grant for Covid-19 needed to be quadrupled to deal with the estimated costs.”

As well as financial strains, the council has found it difficult to source a reliable supply of PPE. The Stray Ferret has reported its appeal to schools and business to help and how care workers in the Harrogate district are feeling frightened and vulnerable.

Long Term Funding Gaps

Well before the crisis, the county council said, there were real financial strains on the long term funding of adult social care and special educational needs. In a statement it said:

North Yorkshire’s financial planning has been dependent on nearly £62 million of temporary funding after the Council lost around £136 million in direct grants from government since 2011 when austerity began.

Together with the overall savings North Yorkshire has had to deliver and the rise in demand the council’s spending power has been reduced by 40 per cent.

Cllr Les said the whole council was pulling together to do everything it could during the crisis and called on the government for "long -term partnership" through the crisis.