The cabinet at Lichfield District Council has been asked to show caution on spending plans until details of a funding settlement have been confirmed.

It comes after a meeting of the local authority’s leadership group revealed that general reserves were currently standing at £6.9million.

But Cllr Rob Strachan, cabinet member for finance, said that the spending tap should not be turned on until details of what money will come from Government had emerged.

Cllr Rob Strachan
Cllr Rob Strachan

“We remain in a healthy position when compared with other local authorities, notwithstanding the ongoing funding gap forecast.

“We do hope that future certainty on our settlement will continue to make that shrink.

“I recognise there is an imperative to consider spending those reserves rather than simply hoarding them, but I would urge caution from cabinet members on that until we’ve seen the settlement that is expected later this month.”

Cllr Rob Strachan, Lichfield District Council

Cllr Strachan also told the meeting that the impact of the evolving picture around Covid-19 variants meant the future impact of coronavirus on council finances was “virtually impossible” to model.

“Many of the support schemes were tapered and a number came to an end in late summer.

“With the new variant, nobody knows what is going to happen. I’m sure there’s been no modelling because there can’t be.”

Cllr Rob Strachan, Lichfield District Council