Funds set aside to deal with coronavirus at South Northamptonshire Council

South Northamptonshire Council should have ‘just about’ enough money left to see it through its final year of existence and the coronavirus pandemic.
By James Averill
Published 4th Aug 2020, 08:18 BST
Updated 4th Aug 2020, 08:24 BST
South Northamptonshire Council is using its savings from last year to deal with the impact of the coronavirus pandemic.South Northamptonshire Council is using its savings from last year to deal with the impact of the coronavirus pandemic.
South Northamptonshire Council is using its savings from last year to deal with the impact of the coronavirus pandemic.

The authority recently agreed at its full council meeting to set aside its £457,000 underspend from the past financial year (2019/20) as an earmarked reserve to deal with the impacts of COVID-19 and any costs associated with it.

In June, the authority (SNC) estimated the effects of the pandemic could cost it anywhere between £2 million and £4.5 million.

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Among the costs hitting SNC are reduced fees and charges within planning, licensing, rental income and land charges; reduced investment returns; lower business rates growth; and increased costs in refuse and recycling and leisure centre costs.

It has since received just over £1 million in grants from the Government to help deal with the crisis, and it’s hoped that the extra money that was saved for the coffers last year could get the council over the line in time for the new West Northamptonshire unitary council that will replace it next April.

Speaking at full council on July 22, the council’s Conservative leader Ian McCord said: “The environment we’re going to be in for the rest of the year is going to be extremely challenging. We’re by no means clear of the COVID situation and anything could happen in this second part of the year. We do need to continue to be vigilant, and the proposals tonight to take the underspend from last year and put it as a special COVID reserve, coupled along with the money we’ve already had from central government, I think will probably just about us see us through I hope.”

But portfolio holder for finance, Councillor Peter Rawlinson, still warned for caution during these ‘turbulent times’. He said: “Whilst we’ve had substantial funds from the Government already they go nowhere near to covering the total of the additional costs and loss of income we as a council will suffer this year. The short term outlook is still far from certain and further financial pressures would not be unexpected. It’s therefore prudent to earmark the underspend from last year as a COVID reserve.”

The £457,000 figure is still subject to the final audit for 2019/20 being approved, which is expected to be finalised in September.

Related topics:Ian McCordGovernmentCovid-19West Northamptonshire