Monmouthshire Council forecasts £3.4m in losses

Monmouthshire council is predicting losses of £3.4 million up to June 2020, due to the coronavirus pandemic.

In a cabinet report, the county council says that “the detailed financial implications of the response have yet to be fully modelled” but early indications suggest it could take a hit of around £3.4 million.

The cabinet report says: “A number of the council’s income streams have also ceased and savings planned as part of the 2020/21 budget have been delayed.”

This includes £220,000 lost through car parking charges after the council made them free for key workers.

The council says that the impact of the coronavirus pandemic on council finances will depend on funding from the UK and Welsh Governments to compensate for the losses, additional costs and delayed savings.

As a result of the coronavirus the council has also has temporarily reviewed its priorities.

The county council has said that “the need to preserve life and stop the spread of the virus, while continuing to support communities, has meant that we have paused or re-purposed a lot of our usual work.”

The council has set up a series of strategic aims that will remain in place during the pandemic. They include helping local businesses survive, providing childcare for children of key workers, to remain financially stable and to help vulnerable people.

The council’s emergency response team will monitor the aims on a regular basis.

The cabinet report says the “virus presents a challenge to the short-term cash flow and long-term viability of many businesses”

“While we continue to receive revenue from taxation, many other sources of income have dried up.

“It is not possible to predict the long-term outcome of this virus on the public finances but it is likely that we will need to revisit some of the aspirations in the corporate plan as we face up to a new financial reality.”

The council has also said that some of the adaptations that have taken place could remain going forward.

These changes include digital infrastructure and remote meeting attendance.