Labour fear Suffolk County Council could make cuts to compensate Covid-19 losses

Predictions Suffolk County Council will lose £20 million as a result of the Covid-19 crisis have sparked fears the authority could make cuts.

Data revealed in a BBC-led study this week comes as some of the UK’s largest local authorities say they will have to effectively declare themselves bankrupt unless the government provides more support.

While they are not issuing a S114 Notice, a declaration of bankruptcy, Suffolk County Council is forecasting a shortfall of £20.1 million – which could be as much as £26 per resident.

As of May 2020, the authority’s additional net expenditure was £54.8 million and has had £34.7 million in emergency grant funding.

A spokesman for the Conservative-led council said: “We are looking at a number of ways of bridging any gap between funding and expenditure to enable us to maintain sound finances whilst delivering our responsibilities to the people of Suffolk. This includes lost sales, fees and charges but does not include reductions in business rates or Council Tax funding.”

The council is set to make another submission to the government.

Councillor Sarah Adams, leader of the Labour Group, said: “While the cost of the virus will not be known for a while, it is already clear funding given to Suffolk by the Government falls way short of what is needed.

“The council has estimated the financial impact of Covid-19 could reach £75 million. Councils were told to do whatever it takes to support people through this crisis, with assurances from the Government they would be reimbursed, but this commitment has not been kept so far.

“We have suffered a decade of austerity that has devastated public services in Suffolk. Another repeat of those cuts as a result of these broken promises would be unconscionable.”