Severe cuts likely in life after lockdown, Sandwell Council finance bosses warn
Sandwell faces severe cuts even after the Covid-19 lockdown has been lifted, council finance bosses are warning.
The prospect of lost jobs and less money for services is outlined in a stark risk assessment to be discussed by senior councillors next week.
A report to Sandwell Council’s emergency committee says the borough will continue to suffer from the pandemic’s financial impact for the foreseeable future.
Giving the threat their highest rating, finance bosses have said: “Work with budget holders and within finance teams has commenced to understand what the potential impact is likely to be and whether the council can continue to deliver a balanced budget for 2020/21 and beyond.
“As a result, the council will need to review which services it continues to deliver with the reduced financial resources available, with an immediate focus placed on the continued delivery of statutory services.”
The financial cost of Covid-19 was spelt out at the committee’s meeting two weeks ago when officers said between March and August the council would spend an extra £14m, while suffering £9m from lost income.
Warning the cost of higher spending and lost revenue will carry on even after outbreak ends, the risk assessment adds: “The loss of income will continue to be affected even once lockdown restrictions are eased.
“Reduced income from council tax collections, increased costs of implementing the council tax reduction scheme, business rate arrears, commercial rents, housing rent arrears, etc and increased demand for council services as a result of the economic downturn will impact the current year and future years’ budgets.”
Council chiefs also warn children services are expected to see a spike in demand as wider job losses in the economy push up the number of youngsters being referred to social workers.
The emergency committee will meet on Wednesday, May 6.
