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Coronavirus: Bradford Council facing £55m deficit

Coronavirus: Bradford Council facing £55m deficit

Published by Harry Long at 2:02pm 29th May 2020.

Bradford Council's warning it may face a  deficit of around £55 million by the end of the financial year because of coronavirus.  

  • Bradford Council says it may face a  deficit of around £55 million by the end of the financial year
  • It's because of a loss of income and extra spending by the council.  
  • The council is warning the impact of the lockdown will hit council finances long after the summer.

The Council says there's been a huge reduction in income from parking tickets and leisure centres in places like Keighley and Ilkley - and it's also been spending more on PPE and food for vulnerable residents.

It's warning the impact of the lockdown will hit Council finances long after the summer.

Bradford has been awarded £30.5 million from the Government so far. However, the Council says the total financial impacts of Covid-19 on Council finances by the end of July are likely to be £39 million.

The Council’s Executive will be given a detailed update on the financial situation, including ways to reduce the deficit, at a meeting in July.

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Councillor Susan Hinchcliffe, Leader of Bradford Council, said:

“These are unprecedented times where extraordinary costs have been incurred keeping our staff and public safe.

“Whilst we are grateful for the funding provided so far by Government, this is clearly nowhere near enough to cover the financial gap we have in this current year. We’re calling on Government to fully compensate councils for these costs; we are at the frontline of keeping our communities going in these difficult times and the Government needs to acknowledge that contribution.

“I’ll be working alongside other local government leaders of all parties to make this case nationally.”

Chris Chapman, Director of Finance and IT at Bradford Council, said:

“If no further Government funding is received we are forecasting a year end deficit of £55 million."