The leader of Milton Keynes Council has warned that the coronavirus crisis could blow a £37 million hole in its finances if the Government doesn’t fill the gap.
At the same time as spending huge amounts on responding to covid-19, the council has lost more than £3 million in parking charges with other service areas losing large sums.
Council leader Pete Marland has written to Prime Minister Boris Johnson for more help.
The council has already received £6 million from Whitehall, with more on the way as part of the Government’s £3.2 billion help for councils across the country.
Cllr Marland (Lab, Wolverton) said: “We estimate that the medium term financial impact of Covid-19 will be an additional £37m funding gap.
“Without action this gap would have devastating effects on the council and the residents of Milton Keynes.”
He sent best wishes to Prime Minister Boris Johnson in his recovery from covid-19.
But Cllr Marland said he is worried that ministers have changed their approach to one where “local government will have to share the burden of cost.”
The council has spent £1.5million extra on adult social care, £350,000 on helping rough sleepers, £150,000 on a temporary mortuary, and £100,000 on personal protective equipment.
At the same time it has lost £3 million from parking, £250,000 in planning fees, and £100,000 in social care income, he says.
Council tax reductions and a hit on business rates are also expected.
“Without additional funding we will simply be unable to continue to support the people of Milton Keynes and deliver a prosperous recovery,” he adds.
“This would leave the most vulnerable in our society unsure where to turn to for support, families unable to feed their children without access to food packages and could lead to job losses amongst our vital frontline staff.”
Both the Conservative and Lib Dem groups at the council have supported the need for additional Government help.
Lib Dem deputy leader Cllr Robin Bradburn (Bradwell) said the council’s ability to respond to the crisis is built on the partnership between Labour and the Lib Dems.
But he warned: “Be under no illusions going forward with the council’s income streams virtually cut off – as in car parking income – even Milton Keynes needs a long term plan from central Government to support local government.”
The council’s Conservative group leader says that they and the city’s two Tory MPs are “working incredibly hard to ensure get our fair share of funding to support the council through this crisis.”
Cllr Alex Walker (Stantonbury) is pleased that the Government is continuing to provide additional funding, in addition to £6 million that MK Council has already received.
But he warned that the extra money requires “further responsibility and more transparency” to ensure residents understand what this crisis means for taxpayers’ money and their services in the long-term.
A spokesperson for the Government said £3.2 billion of funding to support councils’ response to the pandemic is coming in two tranches, with the amounts for individual councils from the most recent announcement yet to be released.
