Yorkshire Town Halls face a budget deficit of £ 273million, with Leeds City Council’s forecast deficit hovering around £ 100million by 2023/24
The BBC’s shared data unit analyzed 170 top-level and single-level councils to determine how their finances are being placed as the nation prepares to exit lockdown restrictions.
He revealed UK local authorities plan to achieve at least £ 1.7bn in savings in fiscal year 2021-2022, while drawing on more than £ 500m in reserves to help to balance the books.
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Despite the planned cuts, which are expected to have a particular impact on the adult welfare sector, the BBC said local authorities forecast a collective budget deficit of £ 3 billion by 2023-24.
The total cumulative deficit forecast in Yorkshire councils is £ 273.4million, although the actual figure is likely higher as the analysis did not include second level district councils in North Yorkshire.
Hardest hit in the region is Leeds City Council with a forecast 23/24 deficit of £ 99.9million, which is 22.9% of the Labor-led council’s net budget.
His £ 56.1 in savings planned for 2021-2022 is 12.89% of his net budget for the year and £ 70.73 per person in the city.
In contrast, the Hull union council has a projected cumulative deficit of £ 12.9million, representing 3.8% of the net budget for the period up to 23/24.
Earlier this year, nearly £ 90million in cuts, 800 job losses and a 5% council tax hike were passed as part of Leeds City Council’s budget for the year to to come.
A spokesperson for the Department of Housing, Communities and Local Government (MHCLG) said broadcasters ‘councils had received £ 12 billion in support during the pandemic, adding:’ In the months to come we will do the review the demands on advice and the resources available to meet them and decide on the timing of future funding reform.
According to the MHCLG, 10 local authorities in England have requested either additional financial support from the government or the ability to treat revenue costs as capital costs, citing “unique circumstances or residual problems that have resulted in unmanageable pressures “.
Croydon Council tops the list with £ 120million in requested support, spread over fiscal years 2020-21 and 2021-22. Luton is next with £ 49million, while Nottingham has asked for £ 35million in further support.
Last month, the government’s Public Accounts Committee (PAC) released its Covid-19: Local Government Finance report, which found that taxpayers were expected to pay an average of 4.3% more in 2021-2022 in government bills. municipal taxes due to holes in the local council. budgetary.
The report called on the MHCLG to do more to understand the “service implications of current financial pressures.”
He also recommended that the department and the Treasury ensure that the next expenditure review “includes full consideration of the longer-term effects of the pandemic on local government finances and the demands placed on local authorities.”
Committee chair Meg Hillier MP said: “MHCLG has stepped up efforts to avert a wave of board bankruptcies in the wake of the pandemic, but the long-term health of the sector is still precarious. optimism about the resilience of the sector is of great concern.
“MHCLG must be a better champion of local government within Whitehall.”
In response, a spokesperson for the MHCLG said: ‘The committee rightly recognizes that we have acted swiftly and effectively to support advice during the pandemic – in total, we have committed over £ 45bn to help advice to support their communities and local businesses.
“However, we dismiss their other claims and continue to work closely with the councils to ensure they have the resources they need to provide vital services to their communities – including access to $ 2.3 billion. more pounds sterling this year. “
Earlier this year, nearly £ 90million in cuts, 800 job cuts and a 5% council tax hike were passed as part of Leeds City Council’s budget for the year to to come.
The changes were announced by the new head of the authority, Coun James Lewis (Lab), who said the increase in demand for services and loss of revenue caused by Covid-19 meant the city was facing his “biggest crisis in 75 years”.
However, Opposition Leader Councilor Andrew Carter (Con) claimed the authority’s financial woes were “self-inflicted wounds” and warned that further financial hardship would be caused by the policies of the borrowing “delicate” from the board.
Changes in the budget for the next fiscal year 2021/22 include a 1.99% increase in the council tax, as well as a 3% increase in the precept of social assistance to adults. A report from council officers said this was to offset Covid-related losses in council tax revenue.