WLDC: £2.7m cost estimate of Covid-19 ... and more to follow

West Lindsey District Council has estimated a current loss of £2.7 million due to the coronavirus pandemic, but say their £38m capital programme of work will not be affected.
West Lindsey Offices EMN-200420-134309001West Lindsey Offices EMN-200420-134309001
West Lindsey Offices EMN-200420-134309001

The message from Coun Giles McNeill, Leader of West Lindsey District Council, and Chief Executive Ian Knowles comes as the authority prepares to emerge from the Covid 19 crisis.

The WLDC bosses are confident, despite reductions in income and the need to call on reserves, ‘robust’ financial management will see them through.

Ian Knowles said: “The council has had to adjust how it works and although we have received £1 million in support of the impact of Covid -19, this money just does not go far enough.

West Lindsey District Council info boardWest Lindsey District Council info board
West Lindsey District Council info board

“We are seeing significant reductions in our income, additional costs and reductions in collection rates for Council Tax and Business Rates, however we are managing cashflows effectively.

“Our current estimation of the full year financial impact is £2.7m, with longer-term impacts affecting project costs, future income from taxation and economic growth and regeneration in addition to increased demand for community support.

“Whilst we continue to lobby Government for further funding, we would have to meet any shortfall from our own resources.

“Our reserves of £20m could therefore see a reduction of 8.5% resulting in a need to review our financial strategy.”

But the Chief Executive confirmed the Council’s Capital Programme worth £38m will not be affected by the emergency.

He added: “With robust financial management already in place, there is no risk of service cuts at this time, subject to the spending review and the local government financial settlement for 2021/22.”

Meanwhile, Coun McNeill acknowledged the council would experience ‘significant uncertainty’, but confirmed the commitment to current investment plans, and the ‘ongoing’ regeneration of communities, whilst ‘ensuring value for money services are continued to be delivered to residents’.

He continued: “The Council is continuing to work collectively and collaboratively with our partners, residents and communities to continue the drive to improve life opportunities and make West Lindsey a great place to be, where people, businesses and communities can thrive and reach their potential”.

“And I am confident that our officers will develop a financial strategy that will see the Council through these difficult times and I expect the government to play its part in taking the impact of Covid 19 into consideration in making its financial settlements for local government.”

Coun McNeill praised staff at the Council for continuing to work flexibly to provide services, and support the government in the changes due to the pandemic.

As a result, 37 staff have been redeployed to other services and 75 per cent have been able to work from home.

He also confirmed no staff at the Council have been furloughed during the pandemic.

The priority for the Council over the last two months has been getting the right support to vulnerable communities and issuing more than £14 million in government business grants as part of the support package from central government.

However, for the long term, Mr Knowles acknowledged the council would be facing challenges.

He said: “The impact the emergency will have on future years will depend on the government financial settlement for local authorities, which is unlikely to be known with any certainty until November or later.

“The impact of the settlement will determine how the local authority will balance its revenue budget in future years and the use of existing revenue reserves in 2020/21 will limit what is available for revenue purposes.

“The Council’s financial strategy will play a key role in meeting these challenges.”