ST HELENS Borough Council is on course to deliver a balanced budget thanks to fresh coronavirus funding, although the future continues to look bleak.

For several months the council has been developing an emergency budget for this financial year in light of the huge impact of Covid-19 on its finances.

Work on this has now been carried into next year due to a combination of factors.

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This is partly due to emergency budget measures taken at the start of the pandemic and the four tranches of government funding, the last of which was announced after St Helens went into Tier 3 lockdown measures.

Speaking at full council this week, councillors were told the authority is now in a position to deliver a balanced budget in this year.

However, a budget report warned that, without significant intervention, the position for 2021-2022 and beyond will be “the most sizeable financial challenge the council has ever experienced.”

Cllr Martin Bond, cabinet member for finance and governance, confirmed that the council has received an addition £3.9 million from the government, bringing the total amount funding up to £17.1 million.

This funding are not inclusive of lost income though, which is subject to a different reporting regime to coronavirus-related budget pressures.

“At present it’s not clear when and how much of the lost income will be replaced,” Cllr Bond said.

“What is clear amidst this ever shifting scene, is that the emergency budget actions that were taken earlier in the financial year and the four tranches of funding received so far, means that the authority is now able  to project a balanced budget in this year, thus removing the need for any further budgetary actions.

“What remains to be said is that the impact of the pandemic on next year’s budget is still hugely significant.”

Cllr Bond said the local government funding settlement is due to be announced on the November 25.

However, he said it is anticipated that it could be as late as Christmas Eve before the actual allocations for St Helens will be known.

Work on preparation for the 2021-22 budget is currently underway, which is expected to include a massive programme of cuts to claw back the budget gap, which is currently projected at £20.4 million.

Cllr Bond added: “Our sibling authorities in the city region are in a similar position to ourselves and in my opinion, the work done by the leaders and the Metro Mayor in the run up to the Tier 3 restrictions have resulted in government listening to their requests for appropriate funding, at least in the short-term.

“Whether or not that extends into the long-term, we shall see.

“It should be noted that even since then the picture has dramatically changed, as the whole country now enters lockdown.”

Last week all group leaders on the council and St Helens’ MPs wrote to the government in a desperate plea for more funds to offset the £20.4m budget gap projected in the next 12 months.

On Wednesday, Council leader David Baines thanked opposition leaders for supporting him in that endeavour.

He warned that, without intervention, this will “inevitability mean extremely tough decisions for all of us”.

Conservative group leader Allan Jones said councillors must put party politics aside and work for the people of St Helens.

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Cllr Jones said: “We have had some problems here haven’t we, with the funding going forward on Covid. And I was happy to sign the letter that was signed by all group leaders.

“We must make government aware of our individual problems we have here in St Helens.

“Because whatever our parties, this Covid is higher than party level.

“We must not let party politics get in the way of us working for the people if St Helens.”