Following the impact of Covid-19 on essential services, we are preparing now for a very challenging budget position in 2022/23.
Covid-19: Financial headlines
Over the past few months we have been looking into the financial impact Covid-19 is having on the Council. Here are the headlines:
- Our current estimate of the total financial impact of the crisis is £77 million
- Not all of this will impact in the current financial year - £50 million is the impact this year. In line with the experience of other local councils, this is both additional costs and lost income (eg parking, homes care charges) and also budget savings we cannot now make
- The remainder £27million is expected future loss of council tax and business rate income
- We have received £34million in government grant, so this is insufficient to cover even our £50million costs this year
- We will therefore have to draw in our reserves to make up the £16million difference
- Before the crisis, we had already identified £35million of reserves available to use over the next 3 years to support our budget, so this additional call will put further strain on our financial viability
- There was already a well acknowledged problem with shortage of funding for local councils, even before the crisis, particularly for social care costs: everyone knows that local councils had their funding cut earlier and harder than any other part of the public sector
- We will not “go bankrupt” this year, but in two years’ time we will run out of reserves that we can prudently use unless the government addresses the impact not just of the crisis
- Councils around the country are in the same position
- We have received other grants, but these have been to pass on to other people rather to use to cover our costs e.g. we have now paid out over £80million of grants to businesses affected by the crisis and £6millionfunding for care homes to cope with infection control has just been announced
- The current crisis has proved the importance of local councils being properly funded to provide support to the city not just in times of crisis but in the future
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Balanced budget and future focus despite pressures of Covid-19
We've set out our budget plans for 2021/22. Despite the challenges brought about by the pandemic we are investing in the care sector, youth services and community safety, giving Council Tax support to those who need it most, retaining citywide essential services to all residents, and delivering on priorities for a sustainable future.
Latest update on Covid-19 testing units available to support local response
Testing is a vital part in our fight against the spread of Covid-19 and to help reduce the rate of people contracting the virus, your help is still needed as much as ever.
Demand for testing has increased so if a booking isn't immediately available please try again. Results are taking a little longer than usual to process so please contact 119 if your results have not been received after 48 hours.
Some sites are pedestrian-only and don’t have drive-through testing. If you are driving to these sites we recommend that you plan your parking in advance.
You can get a test at one of the testing centres by booking an appointment in advance.