Leeds City Council – Counting The Financial Cost of COVID-19

As the impact of the Coronavirus is being felt strongly, the Council claims that, without more money from the government, the City’s libraries and galleries may have to close.

In addition to the closures, over 400 jobs are said by Tom Riordan, LCC’s CEO, to be at risk.

He added “If we anticipate that we can’t balance our budget, we have to take steps to pare our spending right back to the things we just have a legal duty to provide. That would rule out many of the services we provide today, for example the cultural institutions that we fund in the City are non-statutory.”

With a total budget of £530m, overspending currently stands at £197.6m. The Government has so far contributed an extra £43.7m to the Council’s funds.

Even though library services must be provided by law, this might be reduced to an online service of minimal standard, just one sign of the seriousness of the situation being faced by the local authority.

So, where has the money gone? Firstly, there was the imperative of finding accommodation for all rough sleepers, and then the need for expanded social care provision. To make matters worse, revenue from tax, parking, public transport and leisure facilities has been lost.

We’re told that the human cost of the virus in the Leeds area is 600 lives and 1,890 confirmed cases. If everyone can keep their social distance and continue to follow the rules on hygiene, it is hoped that tragic figure will not continue to increase.

Commenting on the situation, the Leader of Leeds City Council, Councillor Judith Blake, said:

“The reports published today show the massive impact coronavirus has had on our City, something which no-one could plan for and which has left us facing a financial challenge of unprecedented proportions.

“Without urgent government support, there is a very real threat of big cuts to council services that many people take for granted.  

“Over the last 10 years the Council has managed to sensibly reduce spending in line with the budget cuts we have faced. Working with all our partners and the trade unions we were able to reduce the impact of cuts on the City, but the financial challenge posed by coronavirus is on a different scale altogether.

“We are therefore calling on the government for more financial support or clarity on flexible options which may be available to help us find solutions so we can continue to support and protect the most vulnerable members of our communities – who rely on our services now more than ever.

“The situation is clearly very serious. I hope the government hears us and acts so the Council can protect services for the people of Leeds.”

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