Bedford Borough Council facing financial gap of between £22m and £36m due to Covid

"Difficult decisions" lay ahead, says councillor
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Bedford Borough Council is facing a financial gap of between £22 and £36million over the next five years due to impact of Covid.

The council’s finances for 2020/21 were discussed at a meeting of the executive, setting out the financial impact of vital support services and lost income. This report forecasts extra costs and lost income of £12.7million in this year’s budget. This is on top of £1.3million extra spent in 2019/20 at the start of the outbreak.

To date, the Government has given £8.9million in grant funding to the Bedford Borough Council to cover the financial impact of coronavirus. The remaining £3.8million gap this year is to be addressed by reprioritising spending and reserves.

Bedford Borough Council is facing a financial gap of between 22 and 36million over the next five years (Google)Bedford Borough Council is facing a financial gap of between 22 and 36million over the next five years (Google)
Bedford Borough Council is facing a financial gap of between 22 and 36million over the next five years (Google)

Looking ahead to 2021/22, the council is currently forecasting a gap of £21.8million, as the impact on council tax and business rates does not affect the current year but will affect future years.

Cllr Michael Headley, portfolio holder for finance, said: “Over the last 10 years, throughout the period of austerity, the council has been finding ways to become more efficient and make savings. However, the financial impact of COVID-19 goes way beyond what we have previously had to look at. Add to that the unknown potential impact of Brexit and no certainty on future grants from the government, and all councils are finding themselves in a period of greater uncertainty than I’ve ever known before.

“We are expecting difficult decisions ahead and with so much still unknown about the course that the coronavirus pandemic will take and the final impact it will have on the economy, we will be keeping a very close eye on the unfolding funding shortfall and doing our best to minimise the impact on local services.”