Council managing ‘really well’ in difficult financial situation made worse by virus outbreak

The verdict came from a representative from Mazars, a global audit and accounting group, who updated councillors on the 2019/20 financial report and statement of accounts.

Gavin Barker, from Mazars, told the Hartlepool Borough Council Audit and Governance Committee finances have been managed very well during years of austerity, but warned the situation was not getting any easier.

He added the council, like others across the countries, was already facing ‘difficult circumstances’ before the outbreak of Covid-19 further impacted measures.

Mr Barker said: “We thought we knew what financial uncertainty looked like, but actually since the impact of the pandemic, financial uncertainty looks a whole lot more difficult.

“Our view is that the council has managed its financial position in difficult circumstances really well over the period of austerity.

“It continues to make sensible but difficult decisions in relation to its financial commitments and financial position, it’s managed a difficult situation and it needs to continue to do so because it just isn’t getting any easier.”

He also noted ‘the greatest difficulty’ the council faces, as was the case last year, is the uncertainty of future funding, with the local authority receiving an annual settlement from the Government.

A comprehensive spending review for local authorities, and further funding reviews have been on the cards by the Government, but have yet to be carried out, according to finance officers.

Mr Barker added the clarity would allow the council to take a longer term view on its finances, especially as there have also been further uncertainties caused by the pandemic.

He said: “It’s a very difficult environment to work in and on top of that there’s been the Covid-19 impact and the council and all councils are really at the centre of the response to this pandemic because they work so close to our communities.

“It’s created financial pressures and Government support has been forthcoming but it still needs to be worked through.

“It’s clearly a difficult situation and we just don’t know where it’s going to go.”

A message from the Editor:

With the coronavirus lockdown having a major impact on many of our advertisers - and consequently the revenue we receive - we are more reliant than ever on you taking out a digital subscription.

Subscribe to the Hartlepool Mail website and enjoy unlimited access to local news and information online and on our app. With a digital subscription, you can read more than 5 articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Visit here to sign up. You can subscribe to the newspaper with 20% off here. Thank you.