The Local Cost Of Covid-19

Hampshire councils say they will have to make ‘huge cuts’ to make up for the millions they stand to lose as a result of the coronavirus pandemic, but is it fair?

Since the outbreak, Portsmouth City Council has spent £7m on services and equipment to tackle the pandemic. It predicts it will lose around £17m this financial year – as it will receive far less income from parking charges, rent, council tax, and business rates.

The government has given the council a lump sum of £6m to help tackle the crisis, but council leader Gerald Vernon-Jackson has concerns that the full cost to the authority will not be met by the Government. He says: “What the Government hasn’t given us money for is the loss of income. There will also be a significant loss of income from the port because there will be no-one traveling across the Channel. We still have to balance the budget at the end of the year. What we are able to do with the budget depends on whether the Government steps up with the money. And, of course, it’s not known how long this will go on for.”