THE Covid-19 pandemic has cost Bradford Council £170 MILLION - new figures have revealed.
However, almost all of that cost has been covered by “very welcome” emergency Government funding.
The eye watering figure is down to a a mix of increased spending to deal with the pandemic, lockdown and social distancing, and a loss of income from theatres, leisure centres, parking, and other income streams that were halted during lockdown.
And there are fears some of the financial hits from the pandemic will continue long after Government funding runs out.
The figures were included in a financial report into the second quarter of this municipal year, which said: “As a result of prudent financial management, the Council entered into the Covid pandemic in relatively good financial health.
“The pandemic’s financial impact has however, been vast. By the end of the 2020-21 financial year, the additional Covid related gross costs and losses associated with Council service provision totalled c£92m, and will be c£169m by the end of this financial year.
“The costs and income losses to the Council have so far been covered by very welcome additional funding from the Government, however, it should be noted that there remains significant uncertainty about how long Covid will continue to impact for, and hence how long the additional funding lasts.
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“At some point during 2021-22 currently announced emergency funding will run out, but our expectation is that there will be an ongoing financial impact of Covid into the medium term.”
Detailing some of the reasons behind the costs, the report said: “Higher numbers of children looked after placements, higher waste tonnages from people staying at home more; lower post pandemic income from sports and culture venues and parking are amongst the financial pressures that could continue into next year and beyond when existing Covid monies have run out.”
Referring to the re-opening of Council run theatres, including the Alhambra and St George’s Hall, the report says: “All Theatre services are now operating fully. Audience numbers have increased ahead of expectations however bookings are relatively last minute due to Covid uncertainty. Generally, forecasts are moving in a favourable direction, however consideration needs to be given to any winter Covid problems which could result in a loss of bookings.”
The report predicts that by April the Council will have overspent its £385.4m net revenue budget by £5.5m.
One of the biggest non-Covid pressures revealed in the report is the spend on agency staff in the Children’s Services department.
A shortage of permanent staff has meant the Council has employed a large number of agency staff - and is currently spending £1.5m a month on agency staff.
In 2018/19 the Council only spent £4.3m on agency staff in an entire year.
There has also been a rise in the number of children receiving Council care. Before the pandemic there were 1,231 looked after children in Bradford.
As of this September there were 1,361.
92 children are currently in external residential care placements, which cost the Council on average £3,600 per week.
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