Fife Council facing £73m COVID bill - and it is still rising

Members of the local authority's Policy and Co-ordination Committee will hear on Thursday that the council is almost £11m short of covering the blows dealt by Covid-19.

Finance chiefs are warning that the move to Level 4 restrictions on Boxing Day, and the subsequent imposition of March-style lockdown conditions, could increase the council's exposure to financial risk.

Eileen Rowland, executive director of finance and corporate services, said in her report: "The response to the pandemic continues to impact on costs and loss of income is likely to continue in the medium-term.

"The financial consequences are continually being evaluated and are now estimated to be in the region of £73m for the (2020/21) financial year.

"There is a risk that the financial impact of any further restrictions relating to COVID-19 may place further pressure on the financial strategy."

Council officers had originally estimated Covid's impact on the council to be as high as £76m, a figure that has since shrunk. However, Ms Rowand says the authority cannot be complacent in the final months of the financial year, even as more financial support becomes available from external sources.

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Among the biggest impacts on the council is a loss of £20.4m of expected building services income, £7m in lost community income from facilities such as village halls and £1.8 million in lost car parking fees.

The council has also forked out £1.5 million on home-working equipment to ensure services could be delivered by staff remotely.

While an estimated £4.6m of funding from the Scottish Government is expected to help cover the costs of Covid, Ms Rowland says there are still areas of overspend yet to be balanced out - and as of yet, the means by which they will be balanced have not been identified.

"it is clear that the quantum of funding available for loss of income across Scotland is unlikely to cover the full extent of income lost over the year," her report concluded.

"On this basis negotiation and dialogue will continue between COSLA, Scottish Government and the UK Government in relation to the consequentials that will be passported to councils."

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