Merton council leader says government cash “will not come close” to covering £20m coronavirus bill

A borough’s leader says the government’s latest support package for councils “will not come close” to covering the £20million losses incurred during lockdown.

Merton leader Councillor Stephen Alambritis warned the latest funding package – which covers less than 75 per cent of losses incurred through freezing local fees and services – will create a massive black hole for budgets in the borough.

He said: “During the course of the pandemic, we’ve worked tirelessly to protect our most vulnerable residents and support those in need.

“We’ve absorbed the cost of launching new services almost overnight and redirected resources and staff towards the crisis.

“This announcement, while welcome, does not come close to meeting the combined impacts of loss of income and additional spending incurred by councils.

“By only being able to recover 75 per cent to 95 per cent of our income losses, we will be left with a budget gap in Merton of an estimated £20 million on top of the pressures we had going into the pandemic.

“That’s far too much for any local area to absorb. Councils were already at breaking point before Covid-19 and the promised ‘comprehensive support package’ promised just isn’t being delivered in this announcement.

“We also have to factor in that we are by no means out of this yet. The risk of a second wave is there, and consumer confidence will take time to return to the high streets. Losses to local budgets are far from over.”