Coronavirus: Councils 'need government help' in deficit

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County Hall in Maidstone
Image caption,

Kent County Council has already spent £5m on personal protection equipment

Councils desperately need government cash to prevent local authorities "falling down like a pack of cards", councillors in Kent have warned.

The county's 14 councils are together facing a mounting deficit of £245m from the coronavirus crisis.

Medway Council must recoup £40m; the 12 district authorities need £155m, and Kent County Council (KCC) £50m.

Opposition leaders at Maidstone County Hall told the Conservatives "tough" decisions must be made.

It comes after KCC said it was spending more on things like personal protective equipment (PPE), but losing up to £30m in tax revenue.

Councils fear bankruptcy

An emergency in-year budget will be set at a full council meeting in September, as reported by the Local Democracy Reporting Service.

KCC's main opposition leader Rob Bird (Lib Dem), of Maidstone, said: "If central government do not come up with some money soon, councils across the country will fall down like a pack of cards."

Nearly 150 local authorities across the country have predicted a budget shortfall, with some fearing bankruptcy, including Liverpool City Council.

Birmingham City Council has the largest deficit of any English authority at £212m followed by Essex (£171m) and Manchester (£133m).

KCC is one of 20 UK councils planning to hold an in-year budget to review extra spending pledges and any potential cuts to services.

Some local authorities have considered closing libraries and children's centres.

'Increased risk unsurprising'

Councillor Dara Farrell, leader of KCC's Labour Group, said: "The KCC administration do not want to talk with us about the financial situation."

"Some tough conversations will need to be had ahead of the budget meeting."

Virus leaves council budget with 'enormous hole'

A total of 17 key "high" and "medium" risks have been identified by KCC over the coming months. These include greater demands on adult social care and children's services; and cyber-attack threats.

KCC's leader Roger Gough (Con) said: "The idea that risk has increased to the council over the last few months is not surprising."

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