The COVID-19 outbreak is set to cost South Holland District Council between £4.1m and £1.7m, the authority has warned.
A report to its cabinet, which will meet online next Tuesday, states that its likely the district council will have to use some of the £5.1m reserves available as a result of the measures.
That’s on top of the £1.06m the council has been given through central government funding.
It says it’s already lost around £620,000 in additional costs and lost income as a result of COVID-19.
It forecasts that figure could rise to £4.1 million in the most pessimistic outlook and to £1.8 for the most optimistic.
The council’s ‘realistic’ forecast states that it will cost the authority £2.5m.
The report of the portfolio holder for finance, Coun Peter Coupland, warns that the financial position is changing rapidly while noting that the council is facing increasing costs for “increasing demand such as temporary housing accommodation, leisure, waste, housing benefit, exceptional costs such as community support work and communications and contractual costs.”
It continues that there will be “significant” lost income in fees and charges, loss of investment income and falls in collection rates while “an increase in Council Tax Support Scheme demands could have a significant impact in the funding due to the council”.
“The current year’s savings plans are at high risk of non-delivery as focus has been diverted in order to manage the pandemic response,” the report states.
The report says: “In order to ensure the council can manage these pressures in this ever changing environment, work will be carried out over the coming weeks with budget managers to review each budget line to identify areas of saving which can be re-allocated to current priorities which will change and adapt to the latest situation, ensuring the council can respond quickly.
“The capital programme will also be reviewed to determine timings and priority of existing projects.
“This will be done in conjunction with the Gold and Silver Command resources to ensure focus on future priorities is given.
“However, it is highly likely that the Council will have to draw on reserves in the current year and potentially next year in order to balance the budget.”
A separate report to the cabinet on how the council has operated through COVID-19 states that 61 per cent of SHDC staff have worked from home while 24 per cent have been working on site or on refuse rounds.
The report of Council Leader Gary Porter states: “Only 10 per cent of staff have been unable to work due to sickness, caring responsibilities, vulnerabilities, etc and due to closure of services.
“There has been only two confirmed cases of COVID19 affecting SHDC officers.
“Over 40 officers have been redeployed from their substantive duties for the Council to be employed in the provision of community, environmental services and business support.”
The report states that as of June 2 the council had organised handing out grants to 1,366 local businesses totalling £15.9m while a further £990,000 has this week began to be handed out to some businesses not available under the first scheme.
The council says over 3,000 checks have been made on local residents while a £50,000 fund has been set up for those facing financial hardships.
What was already one of South Holland’s biggest costs, housing the homeless has increased with 26 rough sleepers taken in as part of the Ministry of Housing, Community and Local Government’s ‘Everyone in’ initiative.
The report states those taken in were “provided with temporary accommodation, daily telephone support and access to a hot meal”.
It continues: “Work has been undertaken to offer more formal support and provide more permanent accommodation solutions. The council continue to accommodate eight rough sleepers under Covid19 arrangements.”
The report states: “The organisation that ‘recovers’ from the emergency will look different and we should maximise and reflect the learning from the emergency and the opportunities it now presents us.”
Tuesday’s Cabinet meeting will be broadcast live on the council’s Facebook page.
