Impact of Covid-19 to hit Stoke-on-Trent City Council's finances

The impact of Covid-19 on Stoke-on-Trent City Council’s finances could be between £8m and £26m.

The authority set out the anticipated financial impact of Covid-19 on council services in an online cabinet meeting which took place yesterday (May 19).

The update, which was provided by the city director Jon Rouse, follows modelling and scenario analysis to establish a range of potential outcomes of the financial impact of Covid-19.

The modelling indicates a ‘best’, ‘most likely’ and ‘worst case’ scenario of £15m, £24m and £42m respectively, reflecting both additional costs and loss of income.   

Council leader Abi Brown said: “Based on high level estimates and expenditure to date, it is expected that around 65 per cent of any additional forecast costs will go towards supporting our children and family services, adult social care services and housing services.

"This includes staffing costs as well as the costs of supporting the adult social care market and frontline staff, support for children social service placements and support for the homeless.

"It also includes lost income from services such as through our leisure centres or car parking.

“At this stage the government has confirmed additional grant funding allocations of approximately £16m. 

"We are grateful for this support but it suggests that there would most likely be an £8m shortfall in funding based on current forecasts with the worse-case scenario likely to be £26m.

"While this position will continually be reviewed and updated as new information emerges, what we do know for certain is that Government funding to date is insufficient to cover the financial pressures we face and further support will be required to place the council in a sustainable position.

"We will continue to talk with Government to discuss what this means for Stoke-on-Trent so our city and its residents are supported through these challenging times.” 

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