Rotherham Council fears coronavirus lockdown could cost up to £40 million

Chris Read, Rotheram Council leader, has said it is difficult to know the long-term impact but expects the coronavirus pandemic to cost the council millions of pounds

He said it is difficult to know the long-term impact, but expects the coronavirus pandemic to cost the council in excess of £40m.

Coun Read said: “Although it is very early to be calculating the potential financial costs to the council, and the eventual cost will depend on how long the current situation continues for, it is already clear there could be profound consequences for the council’s finances.

“If our adult and children’s social care services are not able to deliver their planned in-year savings, even without any further funding requirements, that would amount to a £13m pressure.

“We estimate that, if the current situation continues for most of the financial year, we could lose out on as much as £15m in unpaid council tax, business rates, and other incomes from fees and charges.

“Overall, even with the additional funding we have received so far from the government, the cost to the council could be in excess of £40m.

“We will continue to develop a more accurate assessment over the coming weeks and months.”

Local Government Secretary Robert Jenrick has assured councils they will be reimbursed by the government, as he announced an extra £1.6bn in aid.

Councils across the UK have been spending extra cash to provide social care throughout the lockdown, despite losing revenue from council tax, parking and leisure fees.

During the daily coronavirus address to the nation last Saturday, April 18, Mr Jenrick said: “I promised local government would have the resources they need to meet this challenge.

“We stand shoulder to shoulder with local government and my priority is to make sure they are supported so they can continue to support their communities through this challenging time.

"Up and down the country council workers are the unsung heroes as we tackle this virus.”

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