COUNCILLORS who took a cut to their allowances helped Basildon Council out of a “serious financial pickle”, the deputy leader has said.

The Covid-19 pandemic has cost the council £7 million for the 2020/21 financial year - due to loss of income and increased spending.

The agenda for the council’s audit and risk committee, due to sit next Wednesday, said the council is expecting £5 million to be made available from the government to cover the costs, but the remaining £2 million would have to come from the council’s reserves.

Kerry Smith, deputy leader of the council, said the authority took steps from the beginning of the pandemic to minimise financial loss.

This included councillors taking a cut to their allowances which saved £30,000.

He said: “The first thing we did was save £30,000 a year. We will look at restructuring senior management to save more money.

“As far as we are concerned people pay council tax to have their bins collected, their parks looking good and the town looking good.”

Mr Smith said the council had taken its own measures on top of funding announced by Local Government Secretary Robert Jenrick earlier this year to help councils with pandemic costs.

He said: “If we weren’t sceptical and took Robert Jenrick at his word we would be in a serious financial pickle.

"The ship would be sinking if we hadn’t taken the steps we have done.

“We are floating just fine but we have to bail some water off.”

The council report says: “Uncertainty remains over the continuing impact of the pandemic on the council’s financial position.

"This uncertainty comes from three main factors, how long the pandemic persists, the government’s willingness to continue to provide funding and the speed or otherwise of recovery of the local economy. “

A spokesman for Basildon Council said: "The council is operating in challenging financial circumstances as it continues to support the community and businesses through the pandemic. These are being managed on an ongoing basis.

"Income has been reduced in key service areas like leisure, car parking and cultural services due to the Covid restrictions.

"Expenditure has increased as the council has supported residents and vulnerable individuals through initiatives like the community hub and homelessness prevention.

"It has also worked to support the safe operation of the borough’s town centres and the council’s service provision

"Funding of local government continues to be reviewed by central government. This is constantly monitored and reviewed."