FINANCE chiefs say extra Government cash and belt tightening will mean a council won’t need to dip into emergency funds – yet. 

Stockton Council has racked up an £18m bill from the pandemic so far with leaders still uncertain about what the final cost may be. 

Authority papers prepared for leaders last week showed the Government had stumped by £16.5m of this cost as of the end of September. 

And “savings” from events being cancelled, less advertising and council buildings being shut have come to more than £1m. 

Finance director Garry Cummings said the savings and extra Government funding meant it now didn’t expect there to be a need to use its emergency reserves this year.

Councillors voted to use up to £4.2m of reserves in July to plug a Covid-induced hole in the authority’s accounts.

Deputy leader Cllr Jim Beall believed it was “good news” reserves wouldn’t need to be used yet. 

He said: “One never knows what might occur over the next few months but, as of today, in this we don’t have to dip into reserves. 

“Dipping into reserves would mean we’d have to top them up again with future implications in the years to come.” 

Despite the extra money, the report pointed to “significant uncertainty” about what impacts the lockdown and virus would bring in the next six months.

It also labelled the council’s funding position in future years “extremely uncertain”. 

Mr Cummings added: “We’re now in a one year spending review which will mean a one year financial settlement for us as an authority. 

“We won’t know that position until December – so we’ll be working on a report as soon as we can after then to provide an emerging position for next year’s budget.”

Lost income has seen the council take a £4m hit during the pandemic so far with a Government scheme lined up to offset some, but not all, of these losses.

Meanwhile, rising demand and the inability to save money in children’s services this year has seen costs rise to more than £5m in the department.

The report added: “There is also now evidence of rising numbers of children in our care with a resulting need for external placements. 

“This is placing significant pressure on this budget area.”

A £2m “Covid risk contingency fund” has also been set aside to help pay for any further virus impacts before April. 

Cllr Ann McCoy said the council was in a “good place” before the pandemic started. 

Cabinet colleague Cllr Steve Nelson said Stockton was “financially well run” – pointing to Conservative councils around the country predicting their own struggles balancing budgets.

Cllr Beall added: “As WC Fields said – rather here, than in Philadelphia. 

“It’s a testament to the good management and governance of this authority that we’re in the position we are.”