‘Perfect storm’ for council finances

LOCAL Government in Wales is facing a financial “perfect storm” due to the Coronavirus pandemic, it has been warned.

Speaking during a virtual meeting of Gwynedd Council’s cabinet on Tuesday, it was outlined more central government funding will likely be needed to fill the economic crater left by the Covid-19 once the dust has settled.

Described as a “perfect storm” due to increased pressure on council finances, coupled with a massive drop in income, Cllr Ioan Thomas outlined the measures already undertaken by the council to lessen the burden on the public.

These include a business loan repayment ‘holiday,’ small business support and a decision to suspend council tax recovery and enforcement arrangements until “at least June.”

But with the authority facing substantially increased costs, not least the care sector and equipment to facilitate home working, other budgeted income has already dwindled down to a fraction of what was expected - which also includes car parking, leisure facilities, planning and licensing applications.

Speaking during the meeting, the first held over the internet for the first time in the authority’s history, Cllr Thomas said: “The work to calculate the likely impact of coronavirus on our finances is ongoing, but you could describe it as a perfect storm as income is down and the costs for the authority are up.

“As a county we’re likely to miss out on significant income and while we’re fortunate to be in a better financial position than many authorities, we are certainly under pressure.”

The leader, Cllr Dyfrig Siencyn added: “Of course it’s been a priority that we do not consider the cost if there’s anything that needs spending on as a matter of urgency, but there is a national conversation going on with the Welsh Government in regards to recouping these additional costs and, hopefully, the additional drop in income.”