Coronavirus cost for city council revealed

THE cost of the coronavirus pandemic for Glasgow City Council could reach almost £45 million by the end of June.

Reduced income as a result of lockdown restrictions and the soaring costs of responding to Covid-19 have had a “major impact” on council finances.

Estimates submitted to the Convention of Scottish Local Authorities (Cosla) reveal a £43.5m bill. Savings on food purchases and utilities reduce that figure to just over £41m.

However, current funding confirmed by the Scottish Government totals £27.7m, leaving a £13.4m deficit.

Glasgow’s authority is working with Cosla to lobby the Scottish and UK governments for additional funding.

A council spokesman said: “Councils across the country are incurring unbudgeted spending in delivering a response to the Covid-19 crisis – and this is something we are discussing with the Scottish Government, collectively, through Cosla.

“Clearly, though, the current situation is also having a major impact on our own income, which funds a significant amount of our spending.”

Figures, based on information available by May 15, will be reported to the council’s finance and audit scrutiny committee next week.

They show £34.4m in lost income, with the authority missing out on £16m from closures, including Glasgow

Life venues, and £12.8m in fees and charges.

The report adds more than £5m has been spent on housing and support for vulnerable communities. This has included food vouchers for families with children on free school meals and emergency food for vulnerable citizens.

It is estimated almost £950,000 has been used on additional staffing costs, which would previously have been funded by projects which are now delayed.

There has been £2.9m spent on “non-workforce” issues, including setting up a temporary morgue and ITrelated costs, the report states.

The council also reported additional capital costs of £5.4m to Cosla but the report states: “These are much less certain until construction works are back on-site and contractors can assess additional costs from physical distancing.”

Most of the £27.7m confirmed by the Scottish Government is expected by the end of June.