COVID COSTS MEAN CUTS

Council must find millions in savings

The Covid-19 crisis response has cost North Lanarkshire Council nearly £ 47 million – and now up to £18.3m of new savings are needed.

Cuts will have to be implemented within the next seven months for the authority to balance its books this year.

Leader Jim Logue called the financial picture “an almost impossible challenge” and warned that services for residents will be affected as a result.

Members have now agreed to set up a cross-party budget group to consider options to address the projected deficit, while officials continue to apply for additional funding – to supplement £19m already received from the Scottish Government for coronavirus costs.

Councillor Logue said: “That additional money is very welcome, but it falls short of meeting the local impact.

“We have worked incredibly hard to support people and businesses through coronavirus; but because of lost income and increased expenditure, we are now faced with making more cuts.

“Without more support, the brunt will be borne by the council’s services; and through no fault of the council, will impact on those people use.”

He added: “We only have a short time to work through some very complex challenges; and as painful as it is, we must consider these cuts.”

SNP group leader Tom Johnston insisted that the cross-party group will not be setting a combined budget, saying: “We called for all-party briefing sessions – we will not sit down with the Tories and Labour to agree a budget but will produce our own as always.”

Conservative leader Meghan Gallacher said: “The council’s measures to support people throughout North Lanarkshire must be commended.

“However, the financial impact is beginning to show, and my concern is that a revised budget will lead to further cuts which will harm communities.”

Councillors logging in for their virtual meeting were told that the £ 46.9m additional costs of Covid-19 include nearly £ 15m in relief payments to Culture and Leisure NL reflecting loss

of income at its facilities, now closed for five months.

Free school meal vouchers during lockdown cost more than £2m, and £ 1.4m has gone on sanitiser and cleaning supplies; while there has been reduced income from services including special uplifts, planning and delayed community alarm charges.

There has also been a £7m council tax revenue shortfall due to reduced collection, increased eligibility for reduced payments and a potential slowdown in housebuilding; while £5.4m has been spent to employ all of last year’s probationer teachers.

A contingency fund of £5m has been set aside for future Covid-19 issues such as “IT/ digital requirements, opening of schools, and potential ial costs that may arise [such ch as] the requirement for ra a local lockdown.”

Officials have halted ed recruitment and “nonessential nto expenditure” to help plug the gap, which h is in addition to £20m of cuts agreed in February. y.

Councillors were e told: “The Scottish h Government is s considering solutions s which may further r mitigate the costs of f Covid-19; it is a complex x situation which will be e subject to change.”