£23m black hole in Doncaster Council's finances in 'worst case scenario'

Doncaster Council could face a ‘worst case scenario’ financial black hole of up to £23 million by 2023 due to the Covid-19 pandemic and uncertainty around funding from central government.
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Councillors in Mayor Ros Jones’s cabinet heard the next three years would be ‘extremely challenging due to the sheer number of unknowns’ but finance bosses estimate, on current projections, the shortfall will be in the £13 million range.

The mayor said the council incurred new costs to support services during the pandemic at the same time as losing income through reduced trading, pausing services and a reduction in council tax and business rates.

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Council tax will rise each year by 1.99 per cent along with the two per cent ring-fenced payment which directly funds adult social care.

Ros Jones, Mayor of Doncaster  Picture: Marie CaleyRos Jones, Mayor of Doncaster  Picture: Marie Caley
Ros Jones, Mayor of Doncaster Picture: Marie Caley

During the budget set in March 2020, around 33 jobs were expected to be cut but finance bosses say this is likely to increase by the next one.

Mayor Jones said: “We are still in a volatile situation with coronavirus, therefore the financial impact and how we bridge that budget gap beyond March 2021 are among the top priorities for us.

“One thing for certain in these uncertain times is that we will continue to support Doncaster people, communities and businesses and will be calling on the government to adequately fund councils in this difficult situation. We are not alone, hundreds of local authorities are facing their own financial challenges.”

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Coun Nigel Ball, cabinet member for public health, leisure and culture, added: “It’s worth noting again that since 2010 Doncaster has had 51 per cent of its budget taken away through austerity.

“This is a direct result of cuts from consecutive Conservative governments which have affected our people and our communities and it's totally immoral.”

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