Cyber attack on council systems costs over £10m - with Government expected to help foot bill - Teesside Live

Cyber attack on council systems costs over £10m - with Government expected to help foot bill - Teesside Live

A cyber attack which hit Redcar and Cleveland Council’s computer systems earlier this year is estimated to have cost more than £10m.


Council chiefs have been in discussions with the Government over covering the cost of the ransomware attack since hackers struck in February.


The local authority, which has been under pressure to reveal publicly the cost of the incident, stated the figure in a budget update report provided to members of its cabinet.


Meanwhile, the costs from the impact of the covid-19 outbreak have topped £13m, the authority confirmed.


It said to date financial support from the Government had amounted to £11.3m, leaving a predicted shortfall of more than £1.6m to be plugged.


Councillor Glyn Nightingale, the cabinet member for resources and leader of the Liberal Democrat group, said the figures were based on best estimates and were under continued review.


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He said both the cyber attack, which continues to be subject to a criminal investigation, and the covid-19 outbreak had been “unprecedented”.


Councillor Nightingale said: “These were two completely different sources of disruption to the council’s activities and services and came with serious consequences.”


Cabinet members were told that one particular area of financial concern was the council’s five leisure centres, although a commitment was given that none would close permanently.


In another development, it was agreed that the council’s prices for its bulky waste service would be reduced for the remainder of the financial year.


This will now range from £10 to £40, depending on the number of items ..

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