Covid-19 costs council millions

Coronavirus has cost South Lanarkshire Council more than £35 million.

Reports to the council’s executive committee on Wednesday, February 10, revealed the extent to which the pandemic had hit the council.

However, executive director for finance Paul Manning warned that the latest figures, up to January 1, were “prior to the latest wave of lockdown” which could increase costs further.

Revenue expenditure of £36.033 million since March 2020 has been put down to the effects of Covid-19.

Despite the costs of the pandemic, the council expects to be underspent on its budget by £261,000 by the end of the financial year following a probable outturn exercise.

Most of the cost of Covid has been covered by grants from the Scottish Government, the council’s Housing Revenue Account and fiscal flexibility in the capital budget.

Previously, officers had expected an overspend of around £4.6 million, however an over-recovery in council tax and additional Scottish Government funding for loss of income will cover that shortfall.

Mr Manning said: “Given the nature of this year, this has become a fairly lengthy report.

“£36 million is the overall cost of Covid even after having taken into account a whole series of grants that have come from the government.

“There are costs that we have dealt with internally. For example, money charged to the capital programme is nearly £8 million.

“There are also costs that were charged to the Housing Revenue Account.

“That deals with about £31 million worth of costs but I don’t think we should lose sight that as a council we have taken those steps in order to deal with that overall level of expenditure.

“There is an underspend at this point in the year, and by that I mean December, on the council tax reduction scheme.

“If I am being honest with you, that work was done prior to the latest wave of lockdown. There is the possibility that it will impact further on people’s personal circumstances and I may see an upswing in demand for that reduction money.

“A lot could change towards the end of the year.”