THE Covid-19 pandemic is set to cost Argyll and Bute Council around £12 million across the current financial year, a report has revealed.

The document states that the biggest estimated costs to the authority caused by coronavirus are £2.3m in lost harbour income, and £1.2m in lost income for waste collection.

The council was also expected to face a £1.8m cost for a ‘blended approach’ to children’s education, but that figure is now expected to be significantly lower after the Scottish Government said pupils should return to class full-time.

The projected cost is being updated, and a verbal update will be given alongside the report at a meeting of the council’s business continuity committee on Thursday, August 13.

The report also highlighted that council tax income was down by almost £1m at the end of June. It is roughly estimated that by the end of the year, the figure will be slightly more than £500,000.

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The authority’s chief financial officer Kirsty Flanagan said: “The first submission of full year estimates was submitted to COSLA (Convention of Scottish Local Authorities) on June 19.

“Naturally a number of assumptions have been made on costs that will be incurred, the income that will be lost and the pace that the recovery of services will take place. The full year cost at that time was estimated to be £12.176m."

Councillor Gary Mulvaney, policy lead for strategic finance, said: “Responding to Covid-19 has greatly increased local people’s and businesses’ need for council support.

"Changing how we work, to make sure we’ve been there for people who need us, has had a significant impact on already stretched council resources.

"We’ve set up a local helpline, worked with partners and volunteers to get food where it’s needed, moved staff from different services into our benefits section to help businesses get grant support quickly… I could go on.

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"Argyll and Bute’s need for the council’s services, in moving on from the impact of COVID-19, will be long term.

"We have work to do, with partners, to build the local economy and increase job opportunities; if there is a second wave of COVID-19 and lockdown restrictions return, we will be there again to help those in need; and there’s work to do help us all live and work safely with the presence of COVID-19, in schools to businesses and our outdoors.

"We will do all we can to protect council services. We will continue to work with COSLA on securing national government support for local government services.

In some ways, councils have never been needed more than they are now.”

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“The estimates relating to education and school transport are currently being updated and a verbal update will be given at committee.”

The report also stated that the council has saved nearly £800,000 in school meals, nearly £300,000 in travel expenses and just over £300,000 in connection with waste. In total, reduced costs amounted to nearly £2m.

On the matter of council tax, Ms Flanagan added: “As at the end of June, council tax collections were down by 1.56 per cent on collections this time last year which equates to a circa £0.865m reduction in income.

“Some of this reduction has already been rescheduled to be repaid over the remainder of the year.

“It is very difficult to estimate what the lost income will be by the end of the year; at this stage it has been estimated that it could be in the region of £0.555m, equivalent to a one per cent reduction in collections, and this will be kept under review.”

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