Eastbourne Councillors' Plea To Government: Keep Your Promises

The finance chief at Eastbourne Borough Council is appealing to the government to "honour funding promises" as councillors learn of a Covid-related budget hole of up to £25m.

According to council officials, local authorities here are now facing the most serious funding crisis in their history.

Leading councillors in the borough said they heard, in a meeting on Wednesday (September 16) the "full enormity of the deficit created by the coronavirus".

Councillor Stephen Holt, Cabinet Member for Finance, said:

"I appeal directly to the Secretary of State (Robert Jenrick) to honour the funding promises he made to councils in March when he assured us that government would cover costs associated with the pandemic.  

"We put a brilliant emergency plan into operation to help the people most in need in Eastbourne, but we are still waiting for the government funding to pay for it. 

"The council has been left with massive costs and severe losses of income, most notably within our tourism department, all as a direct result of the pandemic.  

"Our team are working tirelessly to resolve this, but we need Government to honour their commitments."

Councillor Holt was speaking during a debate on the council's future financial plans, in particular its Medium Term Financial Strategy (MTFS).

The MTFS sets the strategic financial direction for the Council and is regularly updated as it evolves and develops throughout the year to form the framework for the council's financial planning.

Officials told councillors that the full financial impact of the virus is still to be seen, but the current estimated net cost to the council could be as high as £25m over the next four years based on the current position.

The 2020/2021 budget deficit is £8 million.

Council officers said they are working closely with MHCLG (Ministry for Housing, Communities and Local Government) to formulate a financial solution, and combat the impact of Covid-19 for residents and businesses.

Aimed at reducing the estimated budget shortfall, a "recovery and reset programme" has also been instigated.

According to the local authority, it aims to radically scrutinise every area of the council's operation and introduce new ways of delivering services.

Through this programme the council said it is planning to reduce its deficit by a further £15m by 2024/25.

Councillor Holt added:

"For all the tragic consequences associated with the pandemic, one of the rays of light to emerge from the darkness of the last six months, is the incredible way councils responded and made sure that residents most in need were looked after.

"I remain hopeful that the government recognises this unflinching sense of duty and commitment to public service at a time of national crisis and fulfils its earlier promises to reimburse councils for costs resulting from Covid-19."