Pandemic costs Cheltenham Borough Council £1.5m
Council leaders say the bill could have been much higher
The impact of the coronavirus pandemic cost Cheltenham Borough Council almost £1.5m last in the last financial year.
Council leaders say it would have cost significantly more had they not taken the right measures during the year.
The council approved the current budget during the third national lockdown when there was no certainty over when things would return to normal.
Why is the bill so high?
The opening up of the economy was much slower than anticipated and since June 30, the government has not provided further compensation to cover income losses.
Finance and assets cabinet member Pete Jeffries (Lib Dem, Springbank) said: “Our response to the pandemic cost our council £1.5m in 2021.
“Without the measures taken during the year, the costs would have been significantly greater.
“In 2020/21, the council received a total of £2.7m of compensation, which equated to 71p for every pound of income lost.
“A final claim had been submitted for the first quarter of the year but no other help seemed to be forthcoming.
“The end of compensation funding also coincided with significant changes in behaviour, with a 37% decrease in commuting in Gloucestershire alone impacting the amount of car parking income generated.”
What's the next financial year looking like?
He said the full impact of the re-opening of the economy on the council’s longer term financial position was still being understood.
The report summarised the forecast impact on the 2021/22 budget based on the information available up to the end of August.
And the council is expecting an overspend of more than £1m during the current financial year.
Councillor Jeffries said the council’s current budgets were being reviewed to reflect changes in activity and behaviour, and to reduce dependency on income streams which might never fully recover to pre-pandemic levels.
Despite the financial challenges, he said the council would continue to support and invest in the town’s post-Covid recovery and deliver key priorities such as carbon neutrality, Cyber Central, affordable and No Child Left Behind project which aims to help all young people to thrive..