Covid-19 crisis costs city council £33m in additional spending

THE coronavirus crisis has cost Dundee City Council almost £33 million in extra spending, a new report has revealed.

Councillors will hear that, after taking into account additional government funding, the predicted shortfall for this financial year amounts to just over £19.5m.

A report on the financial implications of coronavirus, and a financial recovery plan, will be considered by the policy and resources committee on Monday.

The financial recovery plan identifies £16.456m worth of measures, leaving a projected deficit of £3.102m for 2020/21.

Council leader John Alexander said: “We have been working hard to support individuals and communities who have been hardest hit by the coronavirus crisis and lockdown.

“But this has come at a price and we have incurred significant extra spending.

“Despite receiving funds supplied by the Scottish and UK governments, we are still left looking at a substantial deficit.

“The council has been hit hard by the lack of income in areas like parking and construction services, while Leisure and Culture Dundee has suffered from a major drop in revenue.

“The financial recovery plan represents a sensible way forward, and there will be further reports to follow to advise on progress.

“We also want to send the report to the Scottish

Parliament’s local government and communities committee to show the financial impact on Dundee.

“Although these are very concerning financial statistics, it cannot be forgotten that direct action was taken to save lives.

“We still all have a part to play in helping suppress this deadly virus further.”

Meanwhile, another report to be discussed by the committee will highlight the efforts of council staff to assist the public during lockdown.

Included in these measures was a hotline created to assist those people who were shielding, which resulted in food and medicine support being offered to nearly 5,000 people.

Food assistance provided the equivalent of 473,020 meals to 6,857 young people eligible for free school meals.

Community organisations also pitched in by helping almost 5,000 people a week, while overall council support provided the equivalent of 430,596 meals to people who faced going hungry.

Other initiatives included free period products and the provision of computer devices to pupils and parents who would have otherwise been unable to access online services.

The council worked alongside Dundee Volunteer and Voluntary Action, as well as a host of community groups. A call to volunteer during the crisis was answered by 1,900 people.