Council has received £6m in Covid aid

By Elgan Hearn, Local Democracy Reporter

Powys County Council (PCC) has received £6 million in extra support from the Welsh Government to cover the costs of dealing with the Covid-19 pandemic, it has been revealed.

The money has come from the Welsh Government’s Local Authority Hardship Fund, and goes towards the increased costs of Social Care, Homelessness, Free School Meals, PPE (Personal Protective Equipment) and the temporary mortuary facility set up near Builth Wells.

This Thursday, the council’s Finance Panel will be told that a further claim for £1.5 million in loss of income from April to June has been submitted to the Welsh Government.

Another claim for loss of income from July to September needs to be sent to the Welsh Government by early November.

PCC estimated in May that they would lose £6.4 million of income that they collect such as car parking, licence, planning fees as well as rents, bus revenue and leisure centres payments, car parking, waste services, cultural services and school meals during 2020/21.

Head of Finance, Jane Thomas, said: “It is clear that the virus and the measures imposed continue to have an unprecedented detrimental financial impact on the Council and this is likely to continue throughout 2020-21 and into future years.

“The financial support provided by Welsh Government has been significant and has been instrumental in reducing the level of deficit previously reported.

“Further support is available and confirmed, but this is of course dependant on how much support is required across all authorities in Wales within the limit of the fund, so risk remains.”

The report points out that the expected loss of income by the end of the financial year will have fallen from £6.4 million to £5.258 million.

According to the report, the costs of dealing with the pandemic by the end of March 2021, is estimated to be £6.9 million.

But this is offset by other departments underspending their budgets by £11.3million after the council triggered its “business continuity” emergency mode.

Following discussion at the Finance Panel meeting, it is expected that the report will go on to be discussed by the Cabinet at their meeting on November 3.