Hastings Borough Council faces increased financial risk due to coronavirus

The Government has allocated the authority a total of £985,961 to help deal with the impact of the crisis.

But the council said the allocation was not enough to meet additional costs and warned there will be a ‘massive impact’ on council services.

The Government has allocated a total of £1.6bn to councils across the country because of the crisis.

Cllr Kim Forward, leader of Hastings Borough Council, said: “Unfortunately, the new allocation from the Government is still insufficient to meet the additional costs and the loss of income that the council is experiencing as a result of Covid-19.

“We provide many key services such as waste collection, street cleaning, upkeep of parks, housing services and temporary accommodation, planning and environmental health and there is increasing pressure in all areas.

“Along with many other coastal towns our economy depends on tourism and sadly we are seeing businesses struggling and much higher unemployment with many more people claiming benefits.

“We are proud that our council tax reduction scheme still includes a 100 per cent discount for those in greatest need, but it means our income will be greatly reduced in this area.”

Cllr Peter Chowney, the council’s lead councillor for finance and property, said: “As Hastings Borough Council has suffered relatively large cuts in government grants over the years, it’s had to replace this with income from fees, charges and property rental income, amounting to around £14m a year.

“Like other councils, we have few opportunities to reduce staffing costs during the current crisis. Council income from car parking, weekly beach chalet lets, and the cliff railways will be hit especially hard.

“The latest estimates for additional costs, resulting from extra spending and loss of income, range from £2.8m to £6.2m for this year.

“This is in addition to the £1.2m deficit already forecast for the year. Deficits of this size are not sustainable. If we don’t get further substantial funding from the government there will be a massive impact on council services.

“We’ve also learned that that the planned review of the way councils are funded is being delayed by another two years, so councils in the most deprived areas, such as Hastings, will continue to be denied the funding they need to meet local needs.”

Cllr Forward added: “The council is working hard to support the most vulnerable in our community and it is doing so in partnership with other public services and our many community and voluntary organisations.

“As a resident of the town, I am proud all the work being done to combat this terrible pandemic and I would like to thank all those in the NHS and care sector and other key workers for all they are doing to look after us.