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Coronavirus Kent: Fears over £130m cost to under-pressure Kent County Council

By: Ciaran Duggan, local democracy reporter cduggan@thekmgroup.co.uk

Published: 16:03, 01 May 2020

Updated: 16:07, 01 May 2020

Concerns have been raised that the coronavirus crisis could cost Kent County Council (KCC) up to £130million over the next 12 months.

KCC has said the Covid-19 emergency has put its finances under "enormous pressure" as the council desperately keeps critical frontline services running in Kent.

Labour group leader on KCC Cllr Dara Farrell

This comes shortly after County Hall received about £28m this week in the second round of coronavirus funding from the Government. The county council received about £39m in the first tranche at the end of March.

KCC's Labour group leader Cllr Dara Farrell says the Government has been "firefighting" the damage of Covid-19 to England's councils through grant funding while the KCC administration has said it needs more cash.

A KCC spokesman said: "Nobody knows how long the crisis will last but whilst £67m in grant from government is welcome, we are forecasting that its response to the crisis could cost up to £130m this financial year."

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On April 18, local government secretary Robert Jenrick announced a £1.6bn cash boost for England's local authorities in his second round of emergency Covid-19 funding.

KCC has received the second largest amount of the UK's major councils, just behind Birmingham City Council (£31m) and ahead of Essex County Council (£26m) and Hampshire County Council (£24m).

The Romney Marsh Community Hub is one of many providing food and support to those in need during the coronavirus pandemic

Thousands of vulnerable Kent residents have received food and medicines while new community hubs and mortuaries have been set up across the county as part of the £67m Covid-19 emergency spending by KCC.

However, KCC says it faces additional pressure on social care, provision of personal protective equipment (PPE) for key workers and the hiring of extra coroners and registrars to deal with additional deaths across the county.

The KCC spokesman added: "Over the years, councils have become increasingly reliant on income streams other than council tax, where increases are capped, and money from the Government which has become increasingly scarce."

County Hall chiefs say that contractual payments to several key suppliers must continue despite normal service being interrupted.

This includes bus and taxi firms providing home to school transport and providers of early years education and childcare.

Kent County Council is predicting it will face a multi-million pound bill for dealing with the coronavirus pandemic

But, KCC bosses say they cannot take advantage of the Government’s furlough scheme.

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KCC's main opposition leader, Cllr Rob Bird (Lib Dem), said: "At the start of the pandemic, the Government gave an undertaking that it would cover all the additional costs incurred by Kent County Council and other local authorities.

"It is crucial that the Government is true to its word. KCC cannot afford another financial hit.

"Local authorities have borne the brunt of a decade of austerity. It would be disastrous if vital community services were further eroded."

More than £40m of government grant funding has been sent to Kent's 14 local authorities in the latest round of funding, including £7.6m for Medway Council, £1.6m for Canterbury and £1.4m in Thanet.

Maidstone secured £1.7m but the council's leader Cllr Martin Cox (Lib Dem) admitted earlier this week that the authority expects to lose £7.4m in income this year due to slower collection of council tax and business rates.

"It is crucial that the Government is true to its word. KCC cannot afford another financial hit"

Cllr Farrell added: "Any money is welcome, particularly cash which addresses the majority of things that we need. But this grant money is merely firefighting problems for councils."

KCC adds that its predicted £130m cost figure will be dependent on how long the current social distancing restrictions are in place for.

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