Pandemic could leave Stafford Borough Council £3 million out of pocket, says community leader
The coronavirus pandemic could leave Stafford Borough Council more than £3 million out of pocket, a community leader has warned.
Loss of income from car parks and extra costs of providing accommodation for rough sleepers are among the financial challenges faced by the council during the lockdown period.
The authority is already forecast to face a £1.5m impact between March and June. And this could rise to £3.3m for the year – provided recovery begins by the end of June – it was reported this week.
Cabinet members discussed the impact of Covid-19 on the council’s work during a virtual meeting on Tuesday, which was held using video conferencing system Zoom.
Councillor Mike Smith, deputy leader and cabinet member for resources, said: “This pandemic has had a huge impact on the council’s finance – but my view is it would be premature to relax lockdown soon.
“We have had increased costs of £78,000 through things like housing the homeless and delivering food parcels. Loss of income is £400,000 – and the biggest thing is loss of car parking fees which is £200,000.
“The Government has given us £1.4m in two tranches and for the moment we are OK. We are having to update the Government on the costs the council is incurring.
“We do have some reserves for a rainy day. But this rain is a torrential storm and the business community of Stafford Borough is really suffering.
“Calls for housing benefit and council tax support have trebled. Council officers are focusing on those where there is huge hardship.”
So far the authority has awarded £22m in rate relief for retail, leisure and hospitality businesses, which means almost 2,500 will not have to pay rates.
'Proud'
And the council is in the top third of local authorities in the country for distributing business support grant funding from the Government. Around £20m has been paid out so far to 80 per cent of eligible businesses.
Some council staff have swapped their normal jobs for other roles to assist colleagues and the community during the pandemic. Staff have been assisting with bin collections and administration at the crematorium – and some have even been trained to assist with plot digging to help meet demand for services.
Other tasks include providing support to the borough’s most vulnerable residents who are unable to leave their homes at this time. Around 2,000 calls have been made to check on the wellbeing of vulnerable residents, while more than 800 food parcels have been delivered to homes.
Of these parcels 265 have been paid for by residents and 609 have been given to people unable to afford them.
Councillors paid tribute at Tuesday’s meeting to staff and volunteers who are supporting members of their community.
Aidan Godfrey, leader of the council’s Labour group, said: “I would like to say a big thank you to all the staff of Stafford Borough Council who have gone above and beyond. They are doing far more than anyone could expect people to do.”
Councillor Carolyn Trowbridge, cabinet member for leisure, said: “I would like to second the thanks to all the hard-working staff at the borough. They have been doing their utmost to help the citizens of Stafford.
“I must say a huge thank you to the volunteers who have been keeping food deliveries going and groups making and baking for the NHS.
“I have been a driver in charge of two collection points for donations for Rising Brook Church. Debbie Howe at the Oxleathers has set up a food hub and I am just so impressed with how many groups are being set up.
“It makes me proud to say I live in Stafford.”