Councils in Shropshire and Mid Wales hit hard during pandemic
Councils across Shropshire and Mid Wales are expecting to be hit hard due to the coronavirus pandemic, with some services and even jobs being put under threat.
Shropshire Council said early estimates suggested the pandemic could cost it around £20m.
James Walton, director of finance, governance and assurance for Shropshire Council, added: “The Government has pledged an additional £1.6bn for councils to respond to the coronavirus pandemic.
“This is in addition to the £1.6bn pledged on March 19 of which Shropshire Council received an allocation of £8.97m.
“We understand that discussions are being held between Government departments over the first half of this week and we will be advised of our allocation of additional funding, under a new methodology, later in the week. We are pleased that the government recognises that significant financial implications are falling on local government as a result of our actions to help manage the pandemic, although it is far too early to estimate with any certainty what the final cost to Shropshire Council will be.”
Telford & Wrekin Council leader Shaun Davies has written to Boris Johnson seeking urgent funding.
He says the council was allocated £5.1m from the original emergency funding from government, but it is not enough.
In the letter, he writes: “If further funding does not materialise then we will have to reduce the number of staff further in our organisation and reduce services dramatically to protect the core statutory services for adults and children’s services.”
Powys County Council says it is seeing significant losses of income, amounting to about £1.5m a month. The restrictions imposed have meant it is unable to deliver some services and others have ceased as staff are redirected to support the more critical services for its residents.
As the council moves further into this financial year, it expects the impact will be greater.
A spokesperson for Powys County Council said: “Like councils across Wales, Powys County Council is facing considerable financial challenges as a result of the coronavirus pandemic.
“We are seeing significant losses to our income, for example from leisure centres as well as increased demands and costs for some services, such as housing.
“We are working closely with other councils and the Welsh Local Government Association to ensure the Welsh Government understands the scale of the problem facing local Government in Wales.
“We are grateful for the assistance the Welsh Government has provided to our residents and businesses. They understand the pressure councils are under and we look forward to hearing more about what support they will be providing to ensure that we can continue to provide business critical services.”
