£10m overspend forecast at county council due to Covid-19

By Jack Lenton

8th Jul 2020 | Local News

An overspend of £10.1 million is being forecast by Staffordshire County Council, mostly caused by the Covid-19 pandemic.

The overspend is due to be reported at the county council's Cabinet meeting on Wednesday next week (15th July).

In response to the pandemic, the authority put together a £38 million Covid-19 "battle fund" in order to support care homes, businesses, schools and families throughout the crisis.

The council now says that it is continuing to manage its finances as it continues to deal with the effects of coronavirus.

Council leader, Phillip Atkins, said that "serious concern" remained over aspects of the council's budget, but felt that the authority was managing the overspend well.

He said: "Before Coronavirus struck, we had allocated two-thirds of this year's budget to adult care and supporting vulnerable children and young people. The future implications for this authority, particularly around the rising costs of adult care and children's services, remain a serious concern.

"Throughout the pandemic, we have continued to support those who need us the most. This includes the care sector, where we have helped 343 care providers and pledged around £15.5million to help with their day to day duties. We've also provided nearly 2 million pieces of PPE to ensure staff can do their job safely. This is in addition to our support for vulnerable families through our Family Hubs, and local businesses through our Business Support Fund.

"Lockdown restrictions are easing, but there is still a long way to go for the economy, both on a local and national level, to recover. We need to work with central Government to help our communities recover economically in the short term and, in the long term, find a sustainable solution to the national problem of providing social care.

"We are currently managing our £10 million overspend well, and continue to respond to the crisis and its aftermath."

County Councillor Mike Sutherland, Cabinet Member for Finance, said that part of the overspend had also been caused by pressures on care services.

He added: "The overspend is mostly due to our response to the COVID-19 pandemic, but also due to cost pressures in adult social care and children and families services that were evident before the crisis hit.

"The Coronavirus pandemic has put extra pressures on council finances as we deal with the crisis, but we continue to do what is needed and to spend on what is required to get through the pandemic. We continue to support and look after those in adult health care who need our support at the same time protecting vulnerable children in our care, both remains our key priority.

"We continue to ensure that the county council and its finances are managed carefully and effectively. Be assured, wherever spending is necessary, we will always try and get the best value for money for tax-payers and our residents."

     

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