Members of Aberdeenshire Council met virtually yesterday to discuss the multi-million pound losses being inflicted on the authority by coronavirus.
The authority’s communities committee, responsible for areas such as adult social work services, housing, leisure and sport, held an online meeting where members considered the major impact of Covid-19 on the council’s coffers.
According to a report prepared for councillors, it is anticipated that the financial repercussions for the Aberdeenshire Health and Social Care Partnership could be “in the region of £12.9 million”.
The report revealed that the services for which the communities committee is responsible for generated income of just over £5.9m from January to April this year – a decrease of over £2.9m on the same period during 2019.
The council has lost out due to the closure of facilities, suspension of services and the cancellation of various events amid the pandemic.
During yesterday’s meeting, the council’s corporate finance manager Susan Donald discussed the problems.
She said: “Unlike a localised event such as a flood, Covid-19 has affected all aspects of life across Aberdeenshire.
“For the period of mid-March to June, the council will suffer a loss of income linked to Covid-19 of approximately £7.5m, additional costs of £3.2m, and a reduction in expenditure of £2.2m, in essence creating a budget pressure of £8.5m for the first quarter of 2020/21.
“Assessing the impact of Covid-19 is very much seen as an iterative process, particularly as we move out of lockdown and see what the impact has been on individuals and household finances.”
The committee agreed to receive regular updates on the financial impact of Covid-19 moving forwards on budget areas within the committee’s remit.
It also agreed to hold a “virtual workshop” to consider the details of the financial impact on matters relevant to the communities committee.