Skip navigation

Gloucestershire Business News

Council facing £2.5m coronavirus shortfall

Cotswold District Council says it is facing a shortfall of £2.5 million, due to additional costs and loss of income caused by the coronavirus pandemic - unless it can secure further government funding.

In a report to Cabinet, the council said it has already lost £235,000 in parking income alone, a figure it expects to rise to £1.765 million for the full year 20/21.

Overall losses for the year are predicted to be £2.823 million. Figures across the board - from leisure income to garden waste - show a significant loss in the year to date and assume a gradual recovery between June and December 2020.

Council spending is also up - in accommodation and support for homeless people, waste and recycling, and leisure and cultural services. Additional expenditure as a result of COVID-19 is predicted to total £548,000 for the year.

In April 2020, council tax collection rates were down by 1.2% compared to April 2019, equivalent to £76,000 in cash, with further reductions likely in May and June. The council also expects an increase in people of working age applying for Local Council Tax Support, as more people are made redundant during the crisis.

So far the council has received two tranches of additional funding from the government - £33,080 in March and £908,807 in April, which have gone some way toward off-setting the additional costs. But without further funding, the council predicts it will be £2.5 million in the red.

Cllr Mike Evemy, deputy leader and cabinet member for finance, said: "Like many, if not all, district councils, our finances have been hit very hard by the coronavirus pandemic. 

"The forecast shortfall of £2.5million in our 2020/21 budget takes into account the grants from the government. The Liberal Democrat administration is acting prudently - we re-introduced parking charges on 1 June - to reduce this figure. 

"Over the summer, as we see how the situation develops, we will be working on a revised budget for 2020/21 and an updated medium term financial strategy for the council to consider and approve in September."

Related Articles

Stroud extends free parking to help recovery Image

Stroud extends free parking to help recovery

The return of parking charges in Stroud town centre has been put back until July 21 to help traders recover from the impact of the coronavirus pandemic.

Gloucester Cathedral's liberty bells celebrate US friendship Image

Gloucester Cathedral's liberty bells celebrate US friendship

US Army soldiers serving with NATO in Gloucester have marked Independence Day as the Cathedral’s bells chimed the America national anthem.

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Friday, July 3 Image

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Friday, July 3

The latest important news and updates from across Gloucestershire as the coronavirus crisis continues.

Bella Italia and Cafe Rouge closures cost 1,900 jobs Image

Bella Italia and Cafe Rouge closures cost 1,900 jobs

Cheltenham's Promenade and Gloucester Quays are both on a list of closures as the owner of restaurant chains Cafe Rouge and Bella Italia has gone into administration.

Copyright 2020 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.