A government “lie” about financial support during the pandemic has left Sefton Council facing a £21m black hole, a senior councillor said.
Members at a Sefton Council cabinet meeting this morning received an update on the financial impact the pandemic continues to have.
Cllr Trish Hardy, cabinet member for communities and housing, said the government “lied” when they said they would do “whatever it takes” to help councils who would struggle financially due to their responses to the pandemic.
Cllr Hardy continued: “We are still suffering the consequences of that lie.”
Fellow cabinet member Cllr Paulette Lappin echoed the sentiment, saying: “The people of Sefton have suffered, and will continue to suffer, due to central government’s lack of ability to see [how much funding is needed].”
A report, discussed by council officer Stephan Van Arendsen, showed key financial pressures in four areas.
The first is the cost of responding to the pandemic, which council chiefs have predicted to be £14.2million.
See how coronavirus is impacting your local area by entering your postcode below
Sefton has also been hit by a reduction in the fees which the council charges residents for, such as parking and the use of leisure centres.
This loss of income could cost the local authority £14.9million.
The local authority will suffer a another hit to its income from reduced council tax, with some residents unable to afford the charge and others moving to Universal Credit and therefore facing either a reduced council tax bill or no bill at all.
Council chiefs predict this to mean a loss of £5.3m.
A further loss of £7m is forecast due to the reduction of income from business rates, as some companies were forced to close and others are struggling financially.
Mr Van Arendsen said the ongoing uncertainty and volatility due to the second wave of the pandemic is forcing the council into an “incredibly difficult financial scenario”.
So far, the council has received £23.7m from central government – but has said this isn’t nearly enough to cover its pandemic expenditure.
The latest instalment of emergency funding for boroughs in the Liverpool City Region was announced last week.
And despite having the third largest population in the region, Sefton was awarded the lowest amount of emergency funding – just £3.5m.
Liverpool City Council will receive just over £19m, while Wirral Council’s share is £5.4m.
Knowsley, St Helens, and Halton will receive £5.3m, £3.9m and £3.6m respectively.
Funding is allocated using a relative needs formula, which favours area with high levels of deprivation.
However, Sefton Central MP Bill Esterson says with its high number of elderly residents, who are most at risk of complications, hospitalisation and death from coronavirus, Sefton is in a unique position.
Mr Esterson said: “It is nothing less than disgraceful that a borough with such high numbers of over 65s could receive such a inadequate sum from the government to cover extra costs from coronavirus.
“Of course where there is a more elderly population costs will be high. These are the very people whose health is most impacted by coronavirus.”
