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Governments pressed to cover pandemic costs as funding gap develops in Moray

Moray Council.
Moray Council.

Warnings have been issued that financial burdens placed upon Moray Council as a result of the Covid-19 emergency will only deepen despite lockdown restrictions easing.

Figures published by the authority have revealed the pandemic will likely have cost about £5.4 million by the end of June.

Support from governments has so far only stretched to £3.9 million – leaving the council with a £1.5 million gap to fill.

And financial officers have warned costs will only increase, with a final estimate still impossible to estimate.

Yesterday, Tim Eagle, leader of the authority’s Conservative group, called on governments to ensure council responses to the crisis across the country are fully funded.

He said: “Our officers were already stretched before and now they’re going to be trying to plan for the economic recovery we’re going to need.

“Clearly we’re going to give them some more support, whether that’s in the form of a new project team or something of that nature.

“No doubt, given that Moray Council has had its finances stretched over the last 10 years anyway, we would hope the Scottish Government would fund that.

“We don’t have the sort of money needed here at the moment to put towards something like that.”

Moray Council’s Covid-19 burden has been slightly eased by the reducing of some bills by £586,000 – including utility bills for buildings that have been closed and a reduction in fuel costs for staff travel.

The figures will be debated next week at a meeting of the authority’s emergency cabinet, which has been established during the lockdown period.

In a report, chief financial officer Lorraine Paisey warned some costs may not yet be known, while the impact is likely to be “more significant” in the future.

Council leader Graham Leadbitter stressed there are no cash-flow problem at the authority and said some households would make late payments towards council tax bills once their own finances become clearer.

He said: “The costs of tackling the pandemic for both local government and the Scottish Government are considerable and there is huge uncertainty about what the future costs are likely to look like.

“Funding from the Westminster Treasury remains entirely uncertain at the present time.

“Politicians at all levels need to keep lobbying the Treasury to ensure the costs of tackling the pandemic are covered so we can continue to provide the broad range of services our communities value.”