Airdrie & Coatbridge Advertiser
TALKING POLITICS Council finances make ‘grim reading’
Grim reading on council finances during the Covid- 19 crisis has come from the council finance department; all part of the looming, “who pays for the pandemic?” political rows.
The cost to North Lanarkshire Council from the start of the outbreak until the end of this month is estimated at £12.087 million.
This includes direct additional costs of £8.251 million for things like the provision of school meal vouchers until the end of this month, overtime costs and the hiring of agency workers.
Then there is loss of income of an estimated £ 8.195 million due to developments like the closure of CLNL (Culture and Leisure North Lanarkshire) and the loss of school meals’ income and planning fees.
Other losses include drops in council tax income and increases in bad debt.
There were savings of £4.360 million on items like the costs of preparation of school meals and school travel for additional support needs pupils.
Looking ahead, there is the cost of twometre social distancing when schools re- open, staggered school transport arrangements for 60 per cent empty schools, increased staffing, digital plans to support home learning, free meals for school children and other vulnerable groups and emergency childcare for key council workers during the summer and social distancing costs in council services to deal with.
The finance report states the Scottish Government has confirmed Covid- 19 crisis funding of £15.194 million to North Lanarkshire Council.
Holyrood is also allowing flexible use of other Scottish Government grants the council receives. But the council report estimates a Covid-19 crisis funding need of £30 million or more could still remain.
The solution is crystal clear. Only the sovereign UK Government can borrow and put it on the tab (the £1.8 trillion national debt and its £55 billion annual interest rate).
The UK Chancellor has already said he will pay “whatever it takes” to see us through the pandemic crisis.
Scotland is not yet an independent country with its own national bank to allow it to borrow, as all independent states are doing during this crisis.
The Scottish devolved government is not allowed by Westminster to borrow a single penny from anyone, nor is it allowed to overspend its budget.
In fact, it is legally obliged not to spend all of its budget; but must end every financial year with a surplus.
Holyrood finance secretary Kate Forbes states that, to date, the UK Government had provided about £3.6 billion of the £4 billion the Scottish Government has spent on fighting the pandemic.
Worse, Scotland has had to work on mere estimates from Westminster; and Westminster has already backtracked on £70 million of funding for businesses and charities alone.
The SNP are calling for borrowing powers to be granted to the Scottish Government. This is the best way to ensure a reliable flow of coronavirus crisis funding to Holyrood and, from there, to local authorities, including North Lanarkshire.