The costs of covid-19 on Liverpool Council for the last financial year are to run into the tens of millions of pounds.
A draft statement of accounts for the local authority for 2021/22 said it estimated losses of almost £10m with additional coronavirus costs totalling £76m. Not all of these have been compensated for by UK Government support grants.
The report, which will be assessed by the council’s audit committee next week, said during 2020/21, additional expenditure related to covid-19 reached £89m while income was £25m lower than anticipated. It added: “Most of these additional costs and income losses were ultimately covered by various Government emergency support grants.
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“However, the impact of the pandemic continued to be felt in 2021/22” and on this occasion the same level of Whitehall support was not available. According to the draft statement of accounts, there have been “significant legacy costs” in relation to adult social care, homeless families, looked after children and other rising costs associated with the economy returning to normal.
The council’s budget for the last financial year set aside £2m specifically to deal with recovery while other budget growth was factored into children’s and adult social care. The accounts identified an overspend in adults’ and children’s services due to covid-19 legacy costs associated with hospital discharges plus an increase in the number of looked after children.
The report added: “The on-going financial impact of covid-19 on councils is a national issue and the city council has been working closely with the Core Cities and the Liverpool City Region to assess this financial impact and look at potential solutions.” The UK Government is said to be keeping the situation under review and the local authority has continued to provide financial returns to government departments setting out the anticipated financial impact of the Covid-19 pandemic in both of the last financial years.
Looking at its budget for this financial year, the draft statement said it was set amid “the on-going (albeit diminishing) impact of covid-19, a burgeoning ‘cost of living crisis’ and an uncertain economic outlook. The budget included significant growth in relation to children’s and adult social care services, additional provision for homelessness and reflected ongoing income shortfalls due to Covid-19.”
The accounts will be assessed by the local authority’s audit committee next Wednesday at Liverpool Town Hall.
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