Government Funding 'Unlikely' To Cover Pandemic Costs Says Mid Sussex District Council

The latest round of emergency funding from the government is unlikely to cover the costs of the pandemic, according to the leader of Mid Sussex District Council.

Over the next few days, councils will find out how much of the £500m package they will receive to help reduce the eye-watering gaps in their budgets.

Jonathan Ash-Edwards said the crisis had had an unprecedented impact on councils all over the country, with increased costs and loss of income from the likes of car parks and leisure centres leaving them millions short.

In Mid Sussex, that shortfall is £2.9m for this year alone.

The financial fallout from the pandemic is likely to be felt for years to come.

Mr Ash-Edwards added:

“It will be a few more days before we know exactly how much money we will receive from the government, but our allocation is highly unlikely to cover our entire deficit.

“We will therefore continue to review all aspects of delivering our services in the short, medium and long term, with a view to making the required savings.”

Some councils have found themselves in such financial straights that they have been forced to issue Section 114 notices – essentially a bankruptcy warning.

At a meeting of the cabinet on Monday (July 6), Peter Stuart, head of corporate resources, assured members that Mid Sussex was in no such position.

While describing the situation as ‘unprecedented’, he said the council had some £20m of reserves available to help it weather the storm – though they definitely did not want to resort to that route.

By Karen Dunn, Local Democracy Reporter.