Wolverhampton Council services could be cut as coronavirus blamed for £3m funding gap
Services could be cut in Wolverhampton after council bosses revealed the cost of the coronavirus pandemic has left them with a funding gap of more than £3 million.
So far central government has provided £19.4m of emergency funding to Wolverhampton Council, but the authority says the cost of supporting people through the first Covid-19 wave is expected to reach £22.5 million.
Council leaders have said the funding has only been used to tackle the immediate costs of responding to the pandemic and does not factor in the recovery phase or the impact of any future waves of infection.
The council says it is pushing the Government for extra funding, but cabinet councillors will be told next week that unless more money is due, the authority will be forced to consider cuts which could impact on services.
Councillor Louise Miles, Wolverhampton Council’s cabinet member for resources, said: "Government went on record at the start of the pandemic crisis to say councils would be given the resources to do whatever it takes to look after our vulnerable residents during this unprecedented emergency.
"Since March, the council has been a lifeline to our communities - delivering millions of meals to people shielding at home who have no other source of help. We have taken homeless people off the streets and purchased large quantities of PPE to keep people safe.
"At the same time, lockdown caused our income to drop with less business rates coming in, more people applying for council tax support, leisure centres and car parks closed."
Pressures
She added: "So far the Government has provided us with £19.4 million in additional financial support, which is very welcome and covers us up to this point.
"However, we need more money to cover the full costs of this pandemic response if we are to avoid making in-year cuts to local services to pay for this.
“We manage our money well, we plan ahead and make strategic, considered decisions. Were it not for the pandemic, we are on course to break even against the budget we set at the start of the year.
“It is coronavirus which is distorting the position and creating these cost pressures and we do need more resources from Government to avoid Wolverhampton people paying the price for something that is not of their making.”
So far 285 people have died with Covid-19 at the Royal Wolverhampton NHS Trust and 70 people have died in care homes in Wolverhampton.
The matter will be discussed in full at council cabinet next Wednesday.
