Fife Council plugs £73m COVID hit to weather financial storm
and live on Freeview channel 276
Elaine Muir, head of finance, told the environment, finance and communities scrutiny committee that a combination of extra funding and load-sharing across departments would help cover a £73m Covid-19 hole in the budget for the 2020/21 financial year, which ends next month.
Local authority finance bosses had set aside a "last resort" reserve of £10m to cover these costs in the event that they ballooned further - but Ms Muir says this will now not be touched.
Advertisement
Hide AdAdvertisement
Hide AdTo date, Fife Council has accrued £62m in Covid-related funding but expects a further £5 million, and a cost-sharing agreement with housing chiefs will see the remaining costs covered without dipping into the rainy day pot.
Ms Muir told the committee: "The finance team has been tracking all the operational changes, all the additional funding streams introduced by the Scottish Government.
Kirkcaldy's Artisan Market cancelled: This is why it won't take placeFull impact of furlough on Fife jobs revealed in new research
"Whilst the strategy agreed was to use balances of up to £10 million the council balances will remain intact, securing it against inevitable financial risks in future years."
Advertisement
Hide AdAdvertisement
Hide AdHowever, coronavirus will continue to have an impact on Fife's finances into 2021/22.
The projected impact of the virus across the council and its arms length organisations from April onwards is currently projected as £13.2 million - a fraction of the hit taken in 2020/21.
The Scottish Government has promised to deliver an extra £22.9 million in its annual settlement for Fife Council as part of its latest budget, including a proportion to offset any increase in council tax.