WEST Devon Borough Council is facing a half-million pound budget gap as a result of the coronavirus pandemic, writes local democracy reporter Daniel Clark.

The council, like many, has found itself with both increased costs of coping with Covid-19 and supporting vulnerable people in the community and the loss of key income streams such as car parking income and council tax income.

Councillors at last week’s hub committee meeting heard that the current projections were for an overall shortfall of £501,000 when compared against the total net revenue budget set for 2020/21, with that figure taking into account grants that the council had so far received from central government and an estimate £453,000 from the ‘loss of income’ scheme.

But Lisa Buckle, the council’s corporate director for strategic finance, told the hub committee that the 2019/20 accounts contained a £133,000 underspend, which could be used towards the projected budget shortfall.

She told councillors it was difficult to precisely assess the budget as the projections could improve or worsen as ‘we don’t know how quickly things will bounce back’.

She added: ‘We will be monitoring our finances on a monthly basis and as actual figures emerge, we will refine these figures and our assumptions. Time needs to be taken over the next few months and weeks to put together proposals for members to consider for an amended budget for 2020/21.’

The prediction for the year of a £597,000 reduction in income in car parking income had included the actual losses in car parking income for the first three months and an assumption of an ongoing 40% drop in income levels from July 1, with Mrs Buckle saying that they had revised the drop from the initial 30% forecast due to car parks still being emptier than usual.

The council is also budgeting for a loss of income in licensing, waste collection, council tax collection, investment income, from rental of Kilworthy Park, while an interim support package had been agreed with the council’s leisure provider, Fusion Lifestyle to be funded from the leisure services earmarked reserve (see page 11).

The meeting heard that West Devon was undertaking a comprehensive review of all earmarked reserves, which total £3.895-million, while the unearmarked reserve levels stand at £1.219-million, which could be used to plug the gap if absolutely necessary.

The committee agreed to note the significant forecast income and expenditure variations for the 2020/21 financial year and the overall projected shortfall of £501,000, and options will be presented to members for a revised budget for 2020/21 during August and September 2020 in order to achieve a balanced budget for 2020/21.