South Holland District Council has been left “substantially out of pocket” by the COVID-19 outbreak, its member for finance has said.
Coun Peter Coupland outlined that the council could be £4.1m worse off then it had budgeted as a result of the resulting lockdown at a meeting of the authority’s cabinet on Tuesday.
He said: “Every week government guidelines and circumstances are changing and the council is having to respond and adapt, sometimes resulting in costs, loss income, loss investment and funding shortfalls.
“The overall deficit could be anywhere between £2.5m and £4m less any future government funding we may received. So far we’ve received just over £1m.
“The deficit will need to be recovered from reserves leaving us substantially out of pocket, particularly if we do not receive any more government funding.
“The 21-22 budget will certainly take some balancing, if we actually get there.
“Our financial status isn’t like a fluid situation and we do not have absolute total control of it.
“We’re doing what’s necessary to get our communities through this dreadful time, but it’s costing us dearly.”
