Fallout from virus outbreak could cost Derbyshire County Council £45million

Although it is predicted that these extra costs will slowly start to reduce to around £7million over the coming months, by the end of the financial year Derbyshire County Council’s funding shortfall could be close to £45million.

As well as working to balance the books and cover the extra costs and loss of income, the council is working on plans to help the local economy recover.

Derbyshire County Council leader councillor Barry Lewis recently announced a £15m Economic Recovery Fund to support Derbyshire’s communities and businesses to recover from the effects of coronavirus, with its focus being on creating jobs and growth, supporting the green economy and entrepreneurs and business diversification, as well as apprenticeships and training for young people.

And despite challenges, the authority remains in a financially stable position in 2020-21.

Councillor Lewis said: “The council is currently financially stable, with a robust level of reserves, and the good news is that the extra costs to us due to coronavirus are already reducing and are likely to be lower than predicted.

“As well as dealing with the pandemic and all it has thrown at us, the council still faces the pressures it faced before the outbreak, including increased pressures on children’s services and a rising ageing population, as well as unforeseen emergencies including the Toddbrook Reservoir incident this time last year and two major storms which brought devastating floods to the county.

“As well as for Covid costs, we are continuing to lobby government for support to help us cover the £20m costs for road maintenance following the two separate flooding events and the damage they caused to the county’s infrastructure.

“Due to the extra funding from government so far towards Covid-19 costs the council remains in a financially sustainable position but we will continue to press for additional government support, which we will need over the coming months, and into the future, especially as we face reductions in council tax income over the next few years.”