Northampton Borough Council forecasts £1 million overspend in final year of existence

The borough council will be abolished on April 1, and replaced with the new unitary West Northamptonshire Council.

The authority is forecasting a loss of just under £1 million, but the cabinet member for finance, Councillor Brandon Eldred, believes this can be reduced further as more funding becomes available from the Government to help local councils tackle the coronavirus pandemic.

Referring to the latest finance report, Councillor Eldred said: “The report reflects a decrease in the projected year-end overspend to below £1 million. This may reduce further as we understand better the grant requirements and our ability to claim for loss of fees and charges directly related to COVID-19. We expect to have a more detailed report at cabinet in October that will outline our costs and pressures relating the pandemic, reflecting the mid-year position and a better understanding of how the remainder of the year might pan out.”

Big hit losses include a forecast loss of car park income totalling £1.3 million. The report, by chief finance officer Stuart McGregor, states: “Almost all car park income in the year to date has been foregone, and it is anticipated that income will not return to its pre-COVID-19 levels for the rest of the year. The forecast pressure on car parking income is less than reported last month, as more details are now available on the government grant scheme that is expected to compensate for this lost income – these new details have led to an increase in the amount of grant that we expect to receive to compensate for losses in car parking income.”

The housing and wellbeing directorate is also reporting a large overspend totalling £1.01 million, including a £400k pressure due to demand for temporary accommodation, and £275,000 on accommodation for rough sleepers during the pandemic. There is also a small overspend projected in planning due to a loss of income from applications.

Reported underspends in other areas, plus £2.79 million being received from the Government so far in coronavirus funding, has led to the final position, which is as of the end of July.