Council reveals latest impact of pandemic

The latest gross financial impact of COVID-19 on the Perth and Kinross Council’s revenue budget has been estimated at somewhere between £25.5 and £27.7 million.

Mitigation measures of £27.1m have been identified leading to a potential net forecast position of between a surplus of £1.6m and a net deficit of £600,000.

Perth and Kinross councillors will be asked to note and consider the revenue budget updates when they meet on Wednesday, January 27.

A report written by PKC’s chief accountant Scott Walker outlines the council’s latest financial position.

The report states that, based on the latest information available, the projected impact of the pandemic on PKC’s expenditure is estimated at approximately £12.6m.

Pressures listed as contributing to this position include almost £2m on additional teachers and support staff, £4.2m on social care and almost £750,000 on PPE, cleaning and supplies.

The latest projected impact of COVID-19 on PKC’s income is estimated at approximately £6.2m.

The latest projected impact of the pandemic on the local authority’s approved savings is estimated at approximately £1.3m.

To date, PKC has received £16.4m of Scottish Government funding - £9.4m is directed towards specific areas of activity and £7m is to support PKC’s wider response to the pandemic.

The council will consider this updated budget on Wednesday, January 27.

The Scottish Government budget will be announced on Thursday, January 28.

Following that, PKC will learn of its government funding allocations for the next financial year.

A special meeting of PKC is scheduled for March 3 to set out the 2021/22 budget and confirm the council tax levels and reserves strategy for 2021/22.