ABC Council facing £10million loss

The information was presented to councillors in a report to ahead of tonight’s (Thursday) meeting.

In the report titled ‘Emerging Corporate Considerations’ councillors are advised that the overall financial impact of the COVID-19 pandemic to Council is constantly being monitored and reviewed.

However, at present the report states that if the current situation remains, Council stands to lose £10.7 million in the 2020/2021 financial year.

The breakdown provided in the report shows council officers expect leisure income to suffer losses of £4.2 million; non-domestic rates to fall by £2.4 million; environmental services to suffer losses of £1 million and community services to suffer losses of £1 million.

It also says planning and building control services could suffer losses of £700,000 as could property and car parking and tourism and other services.

Despite these losses, the report notes that at the end of March 2019, the Council had various reserves totalling £28 million.

These reserves, the report claims, will allow Council to absorb the financial loss this year. However, the report says it will “dramatically reduce the amount the Council has to finance its plans over the coming year”.

As such, Council will, the report claims, need to reduce its budget by between five and 10 per cent next year.

In an effort to mitigate the expected £10.7 million financial losses council officers have, together with other councils regionally, submitted an application to the Department for Communities for support.

The report says the total requested by the councils is £40 million of which ABC hopes to receive £3.5 million.

Officers are also preparing a claim under the Coronavirus Job Retention scheme as well as preparing a claim to the Department of Agriculture, Environment and Rural Affairs in respect of additional waste management costs.

Officers are also looking at where savings can be made in this year’s budgets and have informed councillors that “further updates on Council’s recovery plan and financial position will be brought to members as further analysis is carried out.”

Armagh City, Banbridge and Craigavon Borough Council are due to meet tonight (Thursday) at 6.30pm. The meeting can be viewed here

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