Posted: Tue 14th Jul 2020

Anglesey Council takes £2.6m hit from coronavirus crisis due to extra costs and lost income

North Wales news and information
This article is old - Published: Tuesday, Jul 14th, 2020

The coronavirus crisis has already led to nearly £1.4m in additional costs as well as £1.2m in lost income for Anglesey Council.

A report presented to its executive this week confirmed that the lockdown has slashed the income generated from services such as leisure, school meals, car parks, school care clubs, libraries and Oriel Ynys Môn.

Although not wholly unexpected, around £1.2m has already been wiped off the £5m the authority had budgeted from such services during 2020/21, placing additional strain on council budgets not only for this financial year but also the next one.

Councils expect that the Welsh Government will refund extra costs they face during the pandemic, which includes securing Personal Protective Equipment, extra cleaning costs and the IT equipment to allow staff to work from home.

To this regard, Anglesey has already received £858,000 for costs incurred in March, April and May.

A further claim for June will be submitted in July, likely to be in excess of the May claim of £526,000.

But it is less clear if lost income can be claimed back from central government, a figure which overshadows the relatively small savings generated by several buildings and services currently being mothballed.

The report presented to councillors on Monday, noted: “Although the level of estimated lost income is significant, the council generates significantly lower levels of income from fees and charges compared to other larger councils in Wales, who generate significantly higher sums in car park fees, leisure centres, theatres, tourist attractions and property rents.

“The Welsh Government have recognised that the loss of income will have a significant impact on the financial viability of councils.

“They announced an additional £78m in support and it has been indicated that around two thirds of this funding will be used to compensate councils for the loss of income. It has yet to be decided how this income will be distributed, but it is likely that it will be allocated on the basis of the actual income lost rather than on a formula basis.

“Whatever basis is used, it is unlikely to compensate the council for all the income lost.”

As part of the ongoing effort, meanwhile, the authority has settled on a plan as it moves to the recovery effort of the Covid-19 response.

This has included developing relationships with groups including Menter Môn and Medrwn Môn during the response efforts.

Deputy Chief Executive, Dylan Williams, said: “We’re committed to planning for the recovery phase and will continue to work positively with our partners in the local community, as well as regionally, and with the Welsh Government to ensure residents see the benefits as quickly as possible.

“The enormity and complexity of the recovery phase should not be underestimated. It will be made even more challenging by the uncertainty, and risk that the number of coronavirus cases could surge again.”

“However, if the number of new coronavirus cases is controlled, as we hope, then the country will adapt further and we’ll move into the recovery phase.”

The council leader, Llinos Medi, added: “Maintaining these close ties, bolstered by the support of local community delivery and strong volunteer networks already in place, will again be key during the recovery period.

“Yesterday, the executive agreed the themes which will provide the building blocks for recovery period which will, of course, bring changes, challenges and opportunities.

“Over the coming weeks, we’ll be working to ensure that we develop these key themes to create a robust recovery for Anglesey, its communities and residents.”

“At the moment, the council’s focus and priority will remain firmly on the emergency response and safely easing restrictions.”

By Gareth Williams – Local Democracy Reporter



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