Agenda item

Motion Submitted by the Labour Group - Financial Impact of Covid on Local Authority Budgets

 

This Council is deeply concerned by the failure of the Conservative Government to compensate local authorities for the full financial impact of Covid-19. In Trafford alone, despite false promises of ‘whatever it takes’ from Government, the current crisis has created a financial pressure of over £60 million that so far hasn’t been met anywhere near in full. Local authorities find themselves in this appalling position having already endured ten years of sustained austerity. Unless action is taken by Government to properly compensate councils for both costs and loss of income in full caused by Covid this could have a significant impact on this Council’s ability to deliver services to its residents in the future.

 

Council notes that as things currently stand – after utilising available resources and exhausting other options – we find ourselves in the position of having a multi-million pound in-year budget gap significantly attributable to Covid, and face a budget deficit of over £35 million for the next financial year 2021/22.

 

Council therefore resolves:

 

-    That the Government must compensate local authorities for the true financial impact of Covid-19.

-     That the Leader of the Council should write to the Prime Minister outlining the threat to local services if this does not happen.

-     That the Council should launch a communications campaign similar to other authorities such as Redbridge to outline the Government’s failure to fund Covid-19 in full (costs and lost income) and to raise awareness of this amongst residents to highlight the risk to local services.

 

Council places on record it’s thanks to all Trafford residents for their support in these challenging times and pays tribute to all our staff who have worked to support our communities over the past six months. They are a credit to us and we are keen to ensure we are properly funded in order that they can continue this fantastic work.

Minutes:

It was moved and seconded that:

 

“This Council is deeply concerned by the failure of the Conservative Government to compensate local authorities for the full financial impact of Covid-19. In Trafford alone, despite false promises of ‘whatever it takes’ from Government, the current crisis has created a financial pressure of over £60 million that so far hasn’t been met anywhere near in full. Local authorities find themselves in this appalling position having already endured ten years of sustained austerity. Unless action is taken by Government to properly compensate councils for both costs and loss of income in full caused by Covid this could have a significant impact on this Council’s ability to deliver services to its residents in the future.

 

Council notes that as things currently stand – after utilising available resources and exhausting other options – we find ourselves in the position of having a multi-million pound in-year budget gap significantly attributable to Covid, and face a budget deficit of over £35 million for the next financial year 2021/22.

 

Council therefore resolves:

 

-  That the Government must compensate local authorities for the true financial impact of Covid-19.

-   That the Leader of the Council should write to the Prime Minister outlining the threat to local services if this does not happen.

-  That the Council should launch a communications campaign similar to other authorities such as Redbridge to outline the Government’s failure to fund Covid-19 in full (costs and lost income) and to raise awareness of this amongst residents to highlight the risk to local services.

 

Council places on record it’s thanks to all Trafford residents for their support in these challenging times and pays tribute to all our staff who have worked to support our communities over the past six months. They are a credit to us and we are keen to ensure we are properly funded in order that they can continue this fantastic work.

 

Following a debate on the matter, the Motion was put to the vote and in accordance with Procedure Rule 16.5, a recorded vote was called for. This resulted as follows:

 

Those in favour of the Motion: Councillors Acton, Adshead, Akinola, Bennett, Brophy, Brotherton, Dr. Carr, Carter, Coggins, Cordingley, Dillon, Duffield, Freeman, Harding, Hartley, Hynes, Jarman, Jerrome, Lloyd, Minnis, New, Newgrosh, Patel, K. Procter, S. Procter, Ross, Slater, Taylor, Thomas, Thompson, Walsh, Welton, A. Western, D. Western, Whitham, Whyte, Williams, Winstanley and Wright.

 

Those against the Motion: Councillors Dr. Barclay, Miss Blackburn, Boyes, Bunting, Butt, Mrs. Churchill, Evans, Mrs. Haddad, Holden, Lally, Mitchell, Morgan, Myers, Shaw and Mrs. P. Young.

 

Those choosing to abstain: None.

 

With the result of the vote being 39 in favour and 15 against, with no abstentions, the Motion was declared carried.

 

RESOLVED: That this Council is deeply concerned by the failure of the Conservative Government to compensate local authorities for the full financial impact of Covid-19. In Trafford alone, despite false promises of ‘whatever it takes’ from Government, the current crisis has created a financial pressure of over £60 million that so far hasn’t been met anywhere near in full. Local authorities find themselves in this appalling position having already endured ten years of sustained austerity. Unless action is taken by Government to properly compensate councils for both costs and loss of income in full caused by Covid this could have a significant impact on this Council’s ability to deliver services to its residents in the future.

 

Council notes that as things currently stand – after utilising available resources and exhausting other options – we find ourselves in the position of having a multi-million pound in-year budget gap significantly attributable to Covid, and face a budget deficit of over £35 million for the next financial year 2021/22.

 

Council therefore resolves:

 

-  That the Government must compensate local authorities for the true financial impact of Covid-19.

-   That the Leader of the Council should write to the Prime Minister outlining the threat to local services if this does not happen.

-  That the Council should launch a communications campaign similar to other authorities such as Redbridge to outline the Government’s failure to fund Covid-19 in full (costs and lost income) and to raise awareness of this amongst residents to highlight the risk to local services.

 

Council places on record it’s thanks to all Trafford residents for their support in these challenging times and pays tribute to all our staff who have worked to support our communities over the past six months. They are a credit to us and we are keen to ensure we are properly funded in order that they can continue this fantastic work.