Budget shortfall of over 4 million pounds at North East Lincolnshire Council

Overspend is partly due to impact of the pandemic

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Author: Local Democracy Reporting / Jamie Waller Published 2nd Nov 2021

There are concerns after North East Lincolnshire Council reported it's likely to be 4 million pounds over budget this year.

The impact of the pandemic and high demand on children’s services are said to have have strained resources.

It's thought events of the last 18 months with Covid 19 has hit the amount collected through council tax and other rates.

The council say they’re continuing to work with services to manage the demand and workforce pressures although the financial position is becoming ‘increasingly acute.’

The council hopes that government and private investment will hope to speed up growth within the borough.

Children and family services are expected to cost £11 million more than originally forecast due to high demand.

However some Government support has helped mitigate the situation.

The report states: “The forecast reflects the on-going impact of Covid-19, and the subsequent risks and demands being experienced, particularly within children’s and family services.

“We are continuing to work with services to manage and mitigate demand and workforce pressures although the financial position is becoming increasingly acute.

“The council’s long term financial strategy remains focused on the achievement of financial sustainability through economic and housing growth, and therefore the pace of delivery is critical.

“The council has taken a more commercial approach over the past two years and is working alongside government and private investors to accelerate growth across the borough.

“Major regeneration projects within the town centres and the Humber bank are factored into the capital investment programme.”

The Council says it has also delivered millions in Government grants to support people and businesses during the pandemic, which are noted in the report.