A £26 million dent in Barnet Council’s finances caused by the coronavirus pandemic has been largely eliminated thanks to support from the Government.
The council now expects to achieve a “broadly break-even position” at the end of the current financial year, without any unplanned or Covid-19-related use of reserves in the general fund, according to a report.
Back in June, only half of the £52.4 million hit to town hall finances from the pandemic had been covered by the Government, prompting concerns over how the council would cope with a second wave of the virus.
Since then, the Covid-related deficit for the current year has shrunk to £1.3 million – although the report adds this position “remains contingent on the detail of the recently announced Government funding and future Covid costs as they materialise”.
The report was discussed at a meeting of the financial performance and contracts committee on Monday.
Ben Jay, the council’s assistant director of finance, told councillors: “In June, it was felt there was a risk of pressure on the council from unfunded Covid costs, which could be as high as £26 million. But now it would appear that actually all costs have been effectively funded, at least for the current year – which is a very helpful position for us to be in.”
Cllr Thomas Smith (Conservative, Oakleigh) asked how Barnet’s financial position compared to those of other councils in London, which have also been hit hard by the pandemic.
Anisa Darr, Barnet Council’s director of finance, said: “The entire sector is struggling in terms of being on the front line of Covid recovery delivery, but also in terms of financial standing.
“There have been some high-profile cases in the press regarding other local authorities, which have required more direct intervention from central government. We are not in that place. Our reserves are healthy – and because of the Government funding that has come through, we have not had to draw down on it this year.
“We are doing OK, but we can’t take our eye off the ball. We need to continue in the vein we have.”
We’ve launched a new Facebook group for politics fans in the borough. Please join the conversation over at North London politics – Barnet, Enfield and Haringey.
Share