Virus could cost North Kesteven District Council £1.4m due to lockdown

North Kesteven District Council officials are predicting a dent in the authority’s finances of at least £1.4million for the current year due to the impact of coronavirus on income and expenditure.
NKDC offices EMN-190402-142820001NKDC offices EMN-190402-142820001
NKDC offices EMN-190402-142820001

The £1.4m estimate is based on the current lockdown measures continuing into June. They envisage an estimated £450,000 loss of income from sources like car parking, closed leisure centres and service charges; plus an estimated £960,000 of additional expenditure, mostly due to existing contracts, as well as overtime for staff in key services and IT supporting remote working.

Leader Coun Richard Wright said the council has always focused on being financially strong through investment in services, in developing income generation and in the district. This has placed it in a stronger position than some councils nationally during the pandemic.

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But he added: “We are also assessing the effect of coronavirus on areas of income such as Council Tax and business rates, as the situation continues to develop.

“We continue to operate within our existing financial framework and are committed to the provision of the essential services our residents need and expect. We’re also looking ahead to the future including the development of a new financial plan to see the council and our district into that all important recovery phase.”

Coun Wright said: “The need for Government financial support to councils is part of a solution which recognises we are all in this together and we are continuing to represent our views on this.”

The authority is also helping residents and businesses with Council Tax and Business Rate holidays, grants and loans, hardship funds and a three month rent relief scheme for business tenants.