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Coronavirus could cost us £50m

Published: 28 April 2020

The extra costs involved in dealing with the coronavirus pandemic are expected to cost us at least £50m

We are initially estimating that the loss of income and the extra costs incurred as a result of coronavirus could cost at least £32m by the end of June, and we expect this to rise to at least £50m later in the year.

The £32m doesn’t include any losses due to people and organisations not being able to pay council tax and business rates. The figure includes savings that we were planning to make this year, but are now unable to do so.

Extra cash has been spent on paying independent care homes more money to reflect their increases in costs, extra money to pay for PPE for front-line care staff, extra temporary staff taken on to work in our care homes, money to pay for food for those who haven’t had any and set up costs for the community resource unit.

A total of £400,000 has also been given in grants to local businesses from the Hardship Fund which has been established, but as applications are still being processed this figure is likely to rise.

So far we have had £23m extra from the Government, and we are waiting to find out what our share of a further national amount of £1.6bn announced recently will be.

Derbyshire County Council Leader, Councillor Barry Lewis, said:

“We’ve incurred extra costs right across the council’s services as we try to do our best to support everyone affected by the pandemic.

“I’m grateful for the extra support from the Government and expect that we will receive more funding to help us support those who need it most.

“Work is now underway to revise this year’s budget to reflect the additional costs of the pandemic and our service priorities. I’d expect to have some proposals in the next few months.

“A huge amount of work to help those in need has taken place in a very short period of time and I’d like to thank everyone involved. I’ve never felt more proud to lead the council. Our employees, residents and businesses are all showing true Derbyshire spirit.”