Perth and Kinross Council is facing a coronavirus black hole of anything between £300,000 and £4.7m.
The local authority is facing an uncertain bill to cover wide-ranging costs brought on by the pandemic which could stretch into the millions.
Allowing for additional Scottish Government funding and mitigating action using predicted underspends from the ongoing year means that council chiefs are uncertain how much damage has been done. This leaves them contemplating a price range of almost £4.5m.
Meanwhile, the local authority’s spending continues to rise. Council bosses say that by using the latest information available, the projected impact of Covid-19 on their expenditure is currently estimated at approximately £12.6 million.
The spending has gone on projects such as preparing for the return to schools and its fly-tipping fund.
This is a net increase of £200k on the position reported in November.
However officers say the main reasons for this increase are the inclusion of updated projections in relation to spending on cleaning, PPE and equipment supplies, along with anticipated costs in relation to tackling financial insecurity.
The latter are funded by the Scottish Government and will be partially offset by a reduction in the support provided to Tayside Contracts.
Money woes over the hike in necessary spending will be compounded by a predicted reduction in net income.
Since November, the projected impact of Covid-19 on council income has fallen by around £100k and is currently estimated to be in the region of £6.2 million.
Takings have fallen significantly in areas such as car parking and “due to an increase in
home working, this is not expected to improve in the current year.”
To date, around £40 million of Scottish Government funding has been distributed to more than 3,800 businesses by Perth and Kinross Council.
By Hogmanay, council officers had also received 4,735 applications for Crisis Grant funding. Of those, 3,178 have been paid, with a total value of around £358,000.
All 39 councillors are expected to meet to discuss the latest report virtually on Wednesday morning.
