Harrogate council could furlough staff in bid to plug £15million deficit

The council's estimated budget shortfall has jumped from £10million to £15million in just two weeks.

Wallace Sampson, chief executive of the council, told the authority's first virtual meeting that this is largely down to a loss of income from lockdown-hit areas such as leisure and car parking.

He said the council may have to look to furlough some staff in the future - but stressed that this is not a unique case and that other authorities are in the same boat.

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"The impact is quite significant," Mr Sampson said.

"We have had staff that have been redeployed from for example leisure to support our waste collection services. And others have been redeployed to support the work we have put in place for the most vulnerable within our community.

"But clearly furlough is one of these things we will need to look at very carefully as a measure to address some of the shortfall within the budget.

"But whatever we do, we will need to make sure it is in accordance with government guidance."

The council has received £1.6million in emergency funds from the government to help cope with the crisis - and it is lobbying for more.

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Senior officers at the authority have been told that any spending should only be in "essential" areas until a recovery plan is laid out.

Coun Richard Cooper, leader of the council, previously said spending will be prioritised on front-line services, retail centres, community facilities, homelessness and support for voluntary organisations.

By Jacob Webster, Local Democracy Reporter

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