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Lancashire’s Covid Costs Underfunded

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Red Rose Lancashire

The Government has once again failed to live up to its promises, that it would fully fund councils in their fight against the Covid Crisis. Lancashire County Council, Cabinet Meeting was informed that the effects of the Covid-19 crisis will have a significant impact on the finances of the Council in the current and forthcoming years.

Treasury Management estimates Government unfunded Covid Costing of £22.602m in the first quarter. Estimated ongoing financial pressures suggest that without significant high level intervention, possibly from the proposed Comprehensive Spending Review in the autumn, action will need to be taken to reduce net expenditure to meet the potential funding gap for 2021/22 and beyond. Revised forecast funding gaps of £44.555m, £54.325m and £71.703m for 2021/22, 2023/24 represent a cumulative funding gap of £170.583m.

Cllr John Fillis, Labour Deputy Leader, said “This Conservative Government’s response of chaos and confusion when it comes to the Covid Crisis will cost the people of Lancashire dearly. They have offered support built on broken promises and backsliding. We should be making this government accountable and pay up what they promised local people.”

The situation remains fluid and precise impacts are unclear, however in its monthly returns to Government, the council has estimated a pressure for the current financial year of circa £100m as a result of a number of factors including demand pressures, emergency funding for adult social care providers, the costs of reacting to the emergency such as the purchase of significant volumes of Personal Protective Equipment and creation of a temporary mortuary, delayed savings and lost income.

Cllr John Fillis, went on to say “At present many services are not being delivered and future services will be cut by the council leaving the People of Lancashire paying more for less, not only now but for many years to come. It’s not surprising that the current Conservative Administrations answer to all this is to cut and run during the Covid Crisis by fiddling with local government reorganisation while Lancashire burns. The people of Lancashire deserve better than this.”

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