Peterborough council reveals plan to wipe out Covid-19 deficit - but awaits Government approval

Currently, Peterborough City Council has lost £14.8 million from the pandemic, despite receiving millions of pounds of additional government funding. This is on top of an already substantial deficit due to large annual cuts to its core government grant.

This means the council could have up to £28 million to save in its 2021/22 budget, although this will be dependent on what further financial support it will receive before April.

In an interview with the Peterborough Telegraph, cabinet member for finance Cllr David Seaton and corporate director of resources Peter Carpenter revealed there has been extensive lobbying taking place between the authority and the Government on finances, with the council proposing an idea which would prevent it needing to make substantial cuts to services to plug its deficit.

This would see the council given a year’s relief from having to repay its loans or make pension contributions, with Cllr Seaton stating: “Both of them would be substantial figures. They would sort out the problem of 2021/22 and would give us a couple of years where things can come back and we can plan the recovery of the future of the council’s finances.

“If in December the Government say ‘here’s a big chunk of money, you can take a holiday on repaying your loans, you can take a holiday on making pension payments’, I don’t have to make cuts or efficiency savings.”

Last year, the council’s new commercial strategy included investing millions of pounds into new schemes, with the authority admitting it “may need to take more risk than in recent times”.

The approach was “driven by necessity” due to its precarious financial situation.

The strategy, which runs until 2021, includes “aspirational targets” such as investing in schemes and projects which could deliver £15 million to £20 million of new revenue over five to 10 years.

A number of local authorities have invested billions of pounds purchasing places such as shopping centres, which have seen a drastically reduced income during the pandemic.

Asked if Peterborough was vulnerable as a result of its commercial strategy, Cllr Seaton acknowledged that the bold approach had not been carried through.

He said: “It would be fair to say the commercial strategy is largely on hold at the moment as our focus is elsewhere. But it’s not having a great impact on the budget.

“We have very little public risk which is commercial.”

In March, the Government issued advice to councils that all rough sleepers should immediately be given temporary accommodation to protect them from the virus.

The council used three hotels, with the Government picking up the bill, but Mr Carpenter said that is now being wound down with the authority set to drop from one to zero hotels.

While in hotels, and receiving support from the council and local charities, rough sleepers were given individual needs assessments and many are said to have made a fresh start, although some have returned to their former lifestyles.

Mr Carpenter said: “It’s been a successful process, but the key will be ‘have we seen a successful shift in the way the homeless are looking at themselves?’ We’ve already seen a number back on the street.”

The council has put in a £1.4 million claim for government funding to cover its support for rough sleepers, and it is expecting more money to become available in the future.

Parts one and two of the Peterborough Telegraph’s interview with Cllr Seaton and Mr Carpenter can be read at www.peterboroughtoday.co.uk.