It remains unclear how much Haringey Council will receive from the additional grant, but it is apparent it will not go far enough to cover all of the loss of fees and charges income and does not address the financial impact of delayed business changes and saving as a result of the Covid-19 crisis.
For any lost council tax and business rates income, there is a proposal to allow authorities to spread the impact over three years, but no clarity as to how they will be helped to meet this loss in their budgets.
Covid-19 will cost London Boroughs £1.8 billion in 2020/21 – £700 million in extra spending, and £1.1 billion in lost taxes and other income. The government has so far provided £500 million in emergency funding – but the costs to the end of May were already £600 million.
Like every local authority across the country, the council’s finances have severely been affected by the pandemic and it is estimated that the outbreak will have a potential £70million financial impact on Haringey Council.
Councillor Charles Adje, Cabinet Member for Finance and Strategic Regeneration said:
“We were told to spend whatever was needed to keep our residents safe and have spent millions to protect and support the most vulnerable, support public health measures and adapt council services to continue to serve residents and businesses
“While this additional funding is welcomed by the council, it is essential that the government follows this up with further announcements so that all the financial impacts on Haringey Council are fully met by government grants.”