Council voices fears Covid costs will be ‘catastrophic’
SLC chiefs writes to Holyrood to seek ‘reassurances’
South Lanarkshire Council has written to finance secretary Kate Forbes with concerns about covering the cost of coronavirus, amid fears of a“catastrophic impact” on public services.
Members of the council’s recovery board were “extremely concerned” over the effects of bridging the budget gap created by the pandemic.
As a result, the recovery board instructed chief executive Cleland Sneddon to write to the finance secretary to seek “reassurance on how this can be managed”.
Last week it was revealed that coronavirus could cost South Lanarkshire Council more than £60 million – leaving a budget gap of £37m once government funding has been taken into consideration.
In his letter to Ms Forbes, Mr Sneddon said: “In 2020/21, the council expects to spend £63m in additional cost, in respect of the pandemic.
“While this is offset by government funding to some extent, it still leaves a considerable shortfall of £37m for the council to manage.
“Members of the recovery board are extremely concerned that the council will be left without the means to fund this additional expenditure, and the catastrophic impact that this could have on service delivery in this year and in future years. The extent of this problem is not just anticipated in this year to March 2021, but will extend into future years both in respect of the legacy costs of some service areas and also, potentially in terms of managing the shortfall as it currently stands.
“At this very time, the council is expected to support its communities through the recovery and renewal phases, it will be impacted significantly by poverty-related demand for services.
“The council is therefore looking for reassurance from the Scottish Government either on reimbursement of the shortfall or in the provision of appropriate flexibility and support to help the council deal with this issue over a period of time.
“I would be grateful for any advice you can offer in this regard which would allow me to report back to a future meeting of the board.”
A spokesperson for the Scottish Government said: “We have taken exceptional measures in every area of government as we deal with the challenges of COVID-19 – and that is particularly clear in our support for local services.
“To date, the Scottish Government has committed almost £330m of additional funding to local government, of which South Lanarkshire Council will receive a fair share.
“We will continue to work with COSLA and local authorities, as well as pressing the UK Government for urgent additional funding and flexibility for our partners in local government.”