North Wales councils facing funding headache due to coronavirus

Councils are bracing themselves for an increased demand on social services once coronavirus restrictions are lifted.

According to the Welsh Local Government Association (WLGA), councils across the country face losing out on around £170m of previously budgeted for income due to the lockdown.

But with no certainty if this will be fully recouped from central government, fears have also been raised that the full costs of the pandemic may not become truly clear for months if not years after restrictions have eased.

Finance chiefs at Gwynedd Council estimate that depending on the length of any restrictions the authority faces a drop in income of between £5m and £16m due to a lack of leisure centre, school meals, parking, consultancy and highways arrangements revenue coming in.

But according to a report that will be presented to the council’s cabinet during a virtual meeting next week, while authorities hope to receive Welsh government funding to cover their additional costs during the lockdown, there is no promise of such cash to cover loss of income.

According to the WLGA, efforts are underway to lobby Welsh ministers to fund the gap on the balance sheets which, in Gwynedd’s case, has the potential to exceed the £7.5m it currently holds in reserve.

But one other council leader fears that councils also face several “hidden” costs, which may not be apparent until lockdown measures are eased.

Speaking to the Local Democracy Reporting Service, Anglesey Council leader Llinos Medi warned that the authority has already lost on on approximately £400,000 of expected income since the lockdown was introduced – a total which is on the rise daily.

“We are noting all of our additional costs as a result of coronavirus and all of the expected income that we are missing out on,” she said.

“Certain sectors such as coastal car parks would have been expected to generate more income as we get into the summer of course, but the additional costs are also significant.

“We anticipate that as part of measures to ease the lockdown, this will itself incur additional costs just to maintain social distancing, but also the likelihood that school transport will need to be reviewed and staffing levels at schools and cleaning staff, just to name a few.

“We don’t know how long term any Welsh government support will be in regards of recouping such losses, but there are concerns that social services will also experience a spike in demand once children return to school.

“We may find examples, for instance, where a parent who may not ordinarily have spent that much time within the family home being forced to do so during the lockdown, but any resulting issue may feasibly only become apparent when the child returns to school.”

Such fears are also shared by Gorwel, a service that assists domestic abuse victims across Gwynedd and Anglesey, which predicts a rise in requests for help due to self- isolation potentially increasing domestic tensions as well as removing opportunities for respite, such as work or the school run.

The National Domestic Abuse helpline has also seen a 25 per cent increase in requests for help since the lockdown, with concerns that this will continue to grow.

Manager Gwyneth Williams, said: “We are acutely aware that there is a huge risk of an increase in domestic abuse instances.

“Our number one priority is to ensure the health of our employees while still delivering key support to those who need it and we have introduced measures in accordance with government guidelines.”

For more about Gorwel, visit www.grwpcynefin.org and click on ‘Your Community,’ or call 0300 111 2122.

By Gareth Williams – Local Democracy Reporter