Fighting virus could cost county extra £50m
COUNTY council bosses fear that responding to the coronavirus outbreak could cost the authority at least £50m by the end of the year.
Derbyshire County Council predicts that the loss of income and the extra costs incurred as a result of the pandemic could cost at least £32m by the end of June, and bosses expect this to rise to at least £50m later in the year.
The £32m prediction does not include any losses due to people and organisations not being able to pay council tax and business rates. The figure includes savings that the council was planning to make this year, but is now unable to do so.
Extra cash has been spent on paying independent care homes more money to reflect their increases in costs, extra money to pay for PPE for frontline care staff, extra temporary staff taken on to work in the council’s own care homes, money to pay for food for those having to go without and set up costs for the community resource unit.
A total of £400,000 has also been given in grants to local businesses from the Hardship Fund which has been established, but as applications are still being processed this figure is likely to rise.
So far the council has had £23m extra from the Government, and is waiting to find out what its share of a further national amount of £1.6bn announced recently will be.
Council Leader Barry
Lewis said: “We’ve incurred extra costs right across the council’s services as we try to do our best to support everyone affected by the pandemic.
“I’m grateful for the extra support from the Government and expect that we will receive more funding to help us support those who need it most.
“Work is now underway to revise this year’s budget to reflect the additional costs of the pandemic and our service priorities. I’d expect to have some proposals in the next few months.
“A huge amount of work to help those in need has taken place in a very short period of time and I’d like to thank everyone involved. “I’ve never felt more proud to lead the council. Our employees, residents and businesses are all showing true Derbyshire spirit.”
Last week it was revealed that Derbyshire Dales District Council was losing £300,000 per month in the loss of parking revenue alone, but the authority said it was too early to predict what its overall losses would be.