The cost of the coronavirus pandemic for Glasgow City Council could reach almost £45m by the end of June.
Reduced income as a result of lockdown restrictions and the soaring costs of responding to Covid-19 have had a “major impact” on council finances.
Estimates submitted to the Convention of Scottish Local Authorities (COSLA) reveal a £43.5m bill. Savings, on food purchases and utilities, reduce that figure to just over £41m.
However, current funding confirmed by the Scottish Government totals £27.7m, leaving a £13.4m deficit.
Glasgow’s authority is working with COSLA to lobby the Scottish and UK Governments for additional funding.
A council spokesman said: “Councils across the country are incurring unbudgeted spending in delivering a response to the Covid-19 crisis – and this is something we are discussing with the Scottish Government, collectively, through COSLA.
“Clearly, though, the current situation is also having a major impact on our own income, which funds a significant amount of our spending.”
Figures, based on information available by May 15, will be reported to the council’s finance and audit scrutiny committee next week.
They show £34.4m in lost income, with the authority missing out on £16m from closures, including Glasgow Life venues, and £12.8m in fees and charges.
The report adds more than £5m has been spent on housing and support for vulnerable communities. This has included food vouchers for families with children on free school meals and emergency food for vulnerable citizens.
It is estimated almost £950,000 has been used on additional staffing costs, which would previously have been funded by projects which are now delayed.
There has been £2.9m spent on ‘non-workforce’ issues, including setting up a temporary morgue and IT-related costs, the report states.
The council also reported additional capital costs of £5.4m to COSLA but the report states: “These are much less certain until construction works are back on-site and contractors can assess additional costs from physical distancing.
“It may also be possible to contain some costs within existing project contingencies, review existing scope or from virements from other projects.”
Most of the £27.7m confirmed by the Scottish Government is expected by the end of June.
It includes a £17.3m allocation of Barnett consequentials, a £5.6m hardship fund and a £4.8m food fund.
The estimated balance of £13.4m has been met through the council’s reserves.
Costs associated with Covid-19 for services providing by the Glasgow City Integration Joint Board, which covers community health and social care, will go through NHS Greater Glasgow and Clyde.
Funding is being discussed with the Scottish Government and the joint board has been allocated a first tranche payment of £5.8m to meet the initial cost of responding to Covid-19.
It also received £1.1m to support providers to pay the Scottish Living Wage.
