Hartlepool council chiefs facing £6million black hole as virus situation reaches 'critical point'

It comes as Hartlepool Borough Council bosses say a ‘critical point’ in the emergency response has been reached with the easing of lockdown, adding the council has a huge role to play.

Council chief executive Gill Alexander provided the update in her report which will go before councillors at the ‘extraordinary’ remote council meeting scheduled for Wednesday.

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She said the council will have an important role in forming a recovery plan and noted consultations and remote meetings will take place with a variety of stakeholders over the coming months looking at how best to address this.

In the report, she said: “We know that society will be different as a result of Covid-19.

“As we move into the next phase the council will have a critical role to play in preventing and controlling local outbreaks.

“It has never been more important for the council to provide strong collaborative leadership.

“We will need to take on this role at a time when local government finances will be under severe pressure as we have to deal with ongoing Covid-19 related costs, loss of income and slow housing growth.”

The report noted Hartlepool has to date received an additional £5.963million from Government to meet additional Covid-19 costs and sustain the social care sector, and £1.864m to direct hardship support to those in receipt of Local Council Tax Support and in greatest need.

However the chief executive’s report stressed more support is needed for all local authorities, including Hartlepool, and said work is taking place with the Local Government Association to ensure the Treasury is aware of the issues.

She continued: “Initial estimates for Hartlepool indicate that we could be facing a £6million shortfall over two years as a result of increased pressures, loss of income and Covid-19 direct costs.

“Without further additional funding councils, including Hartlepool, will struggle to sustain services that were already being severely challenged as a result of nine years of austerity and which will undermine our capacity to provide the local leadership that will be required to shape a post Covid-19 future for the borough.”

The report also provides an update on how infection rates in Hartlepool have developed over recent months.

Until May 12 Hartlepool had one of the lowest infection rates in the North East, however by May 22 the rate had increased significantly to 342 per 100,000 – higher than 75% of the local authorities in England.

This also contributed to the Covid-19 R rate for the North East (0.80) being double that of London (0.4).

Therefore council officers stressed the area has ‘no room for complacency in its response’.

The report also noted in Hartlepool, as of 28th May, there had been 323 confirmed cases in hospital, care homes and the community and 94 people lost their lives as a result of the virus.

Council chiefs said their condolences go out to the families and loved ones of those who have lost their lives.

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