“Perfect storm” facing council finances due to Coronavirus pandemic

Local government in Wales is facing a financial “perfect storm” due to the Coronavirus pandemic, it has been warned.

Speaking during a “virtual” meeting of Gwynedd Council’s cabinet on Tuesday, it was outlined that more central government funding will likely be needed to fill the economic crater left by the Covid-19 once the dust has settled.

Described as a “perfect storm” due to increased pressure on council finances, coupled with a massive drop in income, Cllr Ioan Thomas outlined the measures already undertaken by the council to lessen the burden on the public.

These include a business loan repayment ‘holiday’, small business support and a decision not to suspend council tax recovery and enforcement arrangements until “at least June.”

But with the authority facing substantially increased costs, not least the care sector and equipment to facilitate home working, other budgeted income has already dwindled down to a fraction of what was expected – which also includes car parking, leisure facilities, planning and licensing applications.

Speaking during the meeting, held over the internet for the first time in the authority’s history, Cllr Thomas said: “The work to calculate the likely impact of Coronavirus on our finances is ongoing, but you could describe it as a perfect storm as income is down and the costs for the authority are up.

“As a county we’re likely to miss out on significant income and while we’re fortunate to be in a better financial position than many authorities, we are certainly under pressure.”

The leader, Cllr Dyfrig Siencyn added:  “Of course it’s been a priority that we do not consider the cost if there’s anything that needs spending on as a matter of urgency, but there is a national conversation going on with the Welsh Government in regards to recouping these additional costs and, hopefully, the additional drop in income.”

Meanwhile, the authority’s chief executive outlined the measures already taken by the authority to contain the global pandemic.

Dilwyn Williams confirmed that of the authority’s 3,765 non-teaching staff, 137 were self-isolating due to underlying medical conditions or other such factors, with another 46 having displayed symptoms of Covid-19 out of 175 who are currently on sickness absence.

Of the remaining staff, 1,876 were working from home, 1,290 working in the field such as care workers and refuse staff, with just 132 currently office based.

“In a short space of time we have succeeded in shifting the vast majority of our workforce to working from home thanks to the latest technology, with the IT department to thank for much of that,” said Mr Williams.

With three of the council’s care homes and staff at one learning disability centre having been affected with Covid-19 infections, he paid tribute to workers for their efforts in continuing to offer the best possible service despite the ongoing crisis.

He added that the authority’s PPE stocks were “generally reasonable”, having just received a fresh supply of masks from central government,  but was an “ever-changing situation,” with between 70 to 90 children of key workers currently attending the county’s schools per day.

“I think it’s fair to say that the lockdown has been reasonably effective in Gwynedd and that the cases that end up in hospital tend to be towards the bottom scale of the previously modelled scenarios,” added.

“Having said that, once the lockdown measures are loosened no-one really knows what will happen, so we must continue to be prepared and have that insurance policy in place.

“This includes planning for even greater demands due to the health service needing to get people out of hospital even quicker, but that work will take place alongside the health service.”

By Gareth Williams – Local Democracy Reporter