Published The Extra On Line -

29/5/2020

News Politics Council

By Drew Sandelands
Wednesday, 27th May 2020, 11:28 am

Coronavirus costs in East Renfrewshire ‘significantly exceeds’ funding support
The cost of the coronavirus pandemic on council budgets is expected to “significantly exceed” current funding support.

Almost £1m has been awarded to East Renfrewshire Council from the Scottish Government’s £50m hardship fund and council chiefs expect around £3m from the £155m Barnett consequentials now being shared out to local authorities.

Around £890,000 has been received from the Scottish Government for use by East Renfrewshire’s Health and Social Care Partnership (HSCP).

But a report reveals “the extra pressures faced by the council” are expected to rise beyond these funding allocations.

Additional costs, a reduction in income streams and the response to the pandemic “will also prevent some planned 2020/21 savings from being implemented”.

Councillors agreed a budget in February which plugged a deficit of around £17m. A report on the financial impact of the pandemic on the council is expected to be tabled at a meeting on June 24.

At budget time, the authority revealed almost £210m was to be spent on capital plans over the next 10 years, including nearly £25m on six nurseries.

Construction work has been suspended during lockdown and council officers are working with industry partners on when work will restart.

The council remains committed to almost doubling the amount of free childcare available to families from August.

The report by the authority’s Chief Executive Lorraine McMillan sets out the council’s response to the pandemic and the impact on its resources.

Ms McMillan said: “Whilst these have been very challenging times for the council, our staff have been exceptional.

“Many have worked significant extended hours to make sure residents are safe and well. Others have volunteered to go wherever they are needed.

“Some staff have children to care for and are managing to juggle the various demands of home learning with carrying out their job.”

She added the work of care staff “must be particularly commended”.

The care home sector has been badly hit by the coronavirus outbreak.

Ms McMillan’s report states the authority “put in place enhanced support to our care homes from the start of the pandemic” and has daily contact with managers to discuss the issues they are facing.

The council bought 16 beds in two care homes to “meet anticipated demand” and has used three so far. A spokesman said none of the residents were placed from hospital and all were tested, and found to be negative for Covid-19, before being admitted.

East Renfrewshire’s HSCP has been at the “front line” in the response to the outbreak and recently established a testing team to “undertake enhanced outbreak investigation in all care homes where there are cases of Covid-19”.

All consenting residents and staff will be tested whether or not they have symptoms.

A Community Assessment Centre for people concerned about Covid-19 symptoms has been set up in Eastwood Health and Care Centre for those referred by NHS 24. It has been seeing an average of 10 patients per day.

The HSCP has a centralised PPE store to ensure priority for front line services. In the week beginning April 27, 7460 masks, 7200 gloves and 1700 aprons were distributed to staff.

Between 250 to 300 children have been attending hub schools while a “minimum of 86 per cent” of all pupils have been engaging with weekly digital learning, the report states.

Approximately 1350 parcels are being distributed on a weekly basis to those who would normally qualify for free school meals.

By May 12, the council had received 786 applications for the Scottish Government’s Business Grants Scheme, with payments totalling more than £7m.

The Customer Services team has been providing support via phone, e-mail and livechat, with the use of livechat increasing by 168 per cent based on volumes from April last year.

The Money Advice and Rights Team, which offers welfare rights and debt advice, has seen enquiries increase by 45 per cent for April this year when compared to the previous year.

In an update to the East Renfrewshire Culture and Leisure board on April 29, it was revealed 85 per cent of staff had been furloughed, with 70 workers registered as volunteers.

The pandemic left the council’s environment department facing an “extremely challenging staffing situation” when, on March 30, the department had 155 staff – around 30 percent of the department – unable to work.

In late March, the council purchased more digging equipment to meet an increased demand in burials. It was one of six authorities, led by Glasgow City Council, to set up a mortuary in Hillington to be used if NHS capacity was exceeded.

Published The Herald On Line -

3/6/2020


News

1 hr ago

By David Bol @mrdavidbol Political Correspondent

Scottish councils still haven't received £155m they are owed amid further £100m 'black hole' warning

CASH-STRAPPED councils across Scotland have still not been handed a penny of the £155 million promised to them by Finance Secretary Kate Forbes amid a warning over an extra £100 million “black hole” in town hall finances, with that deficit set to rise.

COSLA, the umbrella organisation for Scottish councils, told Holyrood’s local government committee that authorities have received no explanation as to why the £155 million of vital funding the Scottish Government was given by the UK Government to hand over to councils to help tackle the Covid-19 pandemic has not materialised.

Ms Forbes is due to meet with COSLA’s resources spokesperson, Gail Macgregor, later today, with the £155 million of missing money set to be top of the agenda.

A row erupted last month after it emerged Ms Forbes had recommended that councils drain their already-depleted reserves to plug any funding gap – while refusing to hand over the £155 million until she had been told how much councils need in emergency support.

Once the £155 million is handed over, councils will still be out of pocket by around £100 million – and that gap is expected to rise as the pandemic continues.

Alison Evison, president of COLSA, said: “Unfortunately councils have not received this money.

“We have had an assurance that we will receive it during the month of June.”

She added: “Recovery will bring its own challenges for local government.

“Prior to the Covid-19 pandemic, councils had experienced significant funding cuts and as a result, were already being forced to make difficult decisions – the current crisis has only exacerbated these challenges.

“COSLA has undertaken a cost-collection exercise with all council and the first iterations indicates an initial net additional cost of around £100 million up to the end of June. This figure takes into account the £80 million provided by the Scottish Government for hardship and food funding, as well as the £155 million of consequentials that have been committed to local government.”

Conservative MSP Graham Simpson said it was “unbelievable” that councils have still not received their funding and that it was “really disappointing”.

Mr Simpson also pointed to Scottish councils’ £100 million black hole”, which he warned would “leave local government in serious problems”.

Edinburgh City Council current has a budget deficit of £56.5m for this financial year, and only after using £11.2 million from its own reserves to try and bridge some of the shortfall.

The council’s demand for fortnightly payments for free schools meals has increased from around 6,000 at the start of the lockdown to around 8,000 – but officials in the capital have warned that “detailed financial projections indicate that Edinburgh’s food fund allocation will be fully utilised by 15 June”.

Scottish Labour local government spokesperson and Lothians MSP, Sarah Boyack, said: “The delay in passing on funds has only deepened the financial crisis that councils face and the funding that will eventually be made available is now too little and too late.

“By digging their heels in and prevaricating, the Scottish Government has ensured that this money will only go to help repair the damage to council finances that the delay has caused.

“The true cost of the intransigence of the Scottish Government can be seen in the huge financial difficulties our councils are facing.”

She added: “When this pandemic is over people will remember how councils stepped up to the mark and delivered for their community. They are on the frontline in supporting businesses to keep going, planning to get our schools open again when it is safe and supporting the most vulnerable.

“The Scottish Government needs to act now to stand up for Scotland’s councils, respect the importance of their work and ensure they have the funding they need now.”

Published The Herald On Line -

5/6/2020


News

2 hrs ago

By David Bol @mrdavidbol Political Correspondent

Coronavirus: Kate Forbes blasts 'unnecessary concerns' as councils to get £155m by end of June

FINANCE Secretary Kate Forbes has confirmed emergency funding for Scottish councils will be handed over in full this month – despite the cash still not being formally passed over from the UK Government yet.

Ms Forbes has insisted the umbrella group for Scottish councils, Cosla, was told that the £155 million of funding was “authorised” to reach local authorities’ bank accounts this week – days before its president told MSPs it had not been given an explanation why the money had not turned up.

The Finance Secretary has criticised “unnecessary and displaced concerns about funding for local authorities” - and said that the Scottish Government has not received any concerns over "cash flow" issues by councils.

Ms Forbes was accused of withholding £155 million of emergency funding for local councils after Alison Evison, president of Cosla, told Holyrood’s Local Government Committee that “unfortunately councils have not received this money”.

After the full £155 million is paid, councils are still facing a £100 million deficit by the end of June – with that figures expected to rise as the Covid-19 pandemic continues.

Following the committee meeting on Wednesday, Cosla was asked to clarify Ms Evison’s comments, but a spokesperson said there was nothing more to add on the matter.

But the Finance Secretary has now penned a letter to the committee, confirming local councils will receive their funding in three further installment this month after the first chunk was authorised earlier this week.

Ms Forbes said: “The first instalment was received by local authorities on the 3 June ahead of the Local Government and Communities meeting. The remaining instalments will be paid weekly on the 10, 17 and 24 June.

“We have passed on this funding despite the fact that the £155 million remains still a notified estimate from the UK Government as they were not included in the UK main estimates last month. In other words, the £155 million has not been formally added to our block grant.”

She added: “It is unfortunate, therefore, that opposition parties are demanding that we pass on this money before it has formally been passed on to us. It should also be noted that the Scottish Government took decisive action to front load the normal weekly grant payments to help avoid any cash flow problems for local authorities, with an additional £150 million being provided in May, £100 million in June and £50 million in July.

“We also agreed with Cosla that if local authorities were reporting any cash flow problems we would consider further adjustments to the payment profiles, but to date we have received no such requests.”

James Dornan, the convener of Holyrood’s Local Government Committee, will write to Ms Evison “for clarification of her comments”.

A Cosla spokesperson said: “Councils' efforts during this pandemic have been heroic and we look forward to receiving the further instalments of this funding which is vital to councils continued work fighting Covid-19.”

Published Barrhead News On Line -

25/6/2020


News

11 hrs ago

By Drew Sandelands Local Democracy Reporter

Coronavirus crisis leaves East Renfrewshire Council facing budget shortfall of £13m

THE “unprecedented impact” of the coronavirus crisis on East Renfrewshire Council could leave it facing a budget shortfall of around £14million.

Spending has increased as the council has responded to the pandemic, while income has dropped since lockdown restrictions were imposed in March.

The council will receive £4.4m of a £235m funding allocation from the Scottish Government to local authorities.

But the "additional full year Covid-19 pressure” for the authority is currently estimated at £13.9m, a report to councillors reveals.

It adds that, under a "worst-case scenario,” that figure could rise to £17.5m.

A potential Covid-related shortfall of between £9.5m and £13.1m is expected.

The Convention of Scottish Local Authorities is lobbying the Scottish and UK Governments for more money.

New financial flexibility, including borrowing powers, is being sought at a national level. This would allow pressures to be spread over a longer period.

Councillors will be asked to note the “significant budget gap” for 2020/21 at a meeting today.

Members are also being asked to agree to use some of the extra £1.9m Scottish Government grant money, which was confirmed in late February after Holyrood set its budget, to cover £1.3m of unallocated savings in the council’s own budget.

Council departments are expected to be told to halt all non-essential spending with immediate effect. Directors are set to work over the summer on proposals to address the shortfall.

Extra costs have included providing support for those who are shielding, delivering free school models and offering childcare to children of key workers and those who are vulnerable.

The council has also needed to cover IT costs to enable home working, buy PPE and administer business grants. In some areas, such as utilities and food, costs have decreased.

The report by the council’s chief financial officer, Margaret McCrossan, states the authority and East Renfrewshire's Culture and Leisure Trust rely heavily on external income, which has been lost due to the closure of facilities such as gyms, swimming pools and halls.

It also reveals income from council tax is expected to fall as levels of unemployment rise.

Additional costs are expected during the recovery from the pandemic too.

"Costs are likely to change significantly as we move through the recovery phases and councils adapt and redesign services accordingly,” the report states.

"There are also many unknown factors, including the timing of the recovery phases, the impact on the wider economy and public behaviour and the potential impact of any future peaks in the outbreak, leading to further restrictions."

Schools will need to be redesigned to make them safe for children and all facilities will require more cleaning, resulting in higher staffing and material costs.
More articles

The Covid-19 shortfall has been included in overall monitoring of the council’s budget. With the government grant increase and “minor variances” on normal expenditure, the end of financial year shortfall is forecast to be £8.55m.

Reported figures do not include the cost of the pandemic for the East Renfrewshire Integration Joint Board (IJB), which directs the East Renfrewshire Health and Social Care Partnership between the council and NHS Greater Glasgow and Clyde.

Around £890,000 has been allocated to East Renfrewshire's IJB by the Scottish Government.

Total costs are expected to reach around £9m, with a significant chunk spent on social care, but the IJB expects government funding to cover these costs.

The council's spending on capital projects will also be affected by the pandemic, with work on sites suspended, projects delayed and costs set to rise due to new ways of working.

The impact of this is currently being assessed.

Published The Extra On Line -


Health Coronavirus


By Drew Sandelands
Wednesday, 24th June 2020, 9:26 am

East Renfrewshire Council faces £13m budget shortfall due to coronavirus
The “unprecedented impact” of the coronavirus pandemic on East Renfrewshire Council could leave the authority facing a budget shortfall of around £13m.

Spending has increased as the council has responded to the pandemic while income has dropped since lockdown restrictions were imposed in March.

The council will receive £4.4m of a £235m funding allocation from the Scottish Government to local authorities.

But “the additional full year Covid-19 pressure” for the authority “is currently estimated at £13.9m”, a report to councillors reveals.

It adds “under a worst-case scenario” that figure could rise to £17.5m.

A potential “Covid related” shortfall of between £9.5m and £13.1m is expected.

The Convention of Scottish Local Authorities is lobbying the Scottish and UK Governments for more money.

New financial flexibility, including borrowing powers, is being sought at a national level. This would allow pressures to “be spread over a longer period”.

Councillors will be asked to note the “significant budget gap” for 2020/21 at a meeting today (Wednesday).

Members are also being asked to agree to use some of the £1.875m extra Scottish Government grant money, which was confirmed in late February after the government set its budget, to cover £1.28m of unallocated savings in the council’s own budget.

Council departments are expected to be told to halt all non-essential spending with immediate effect. Directors are set to work over the summer on proposals to address the shortfall.

Extra costs have included providing support for those who are shielding, delivering free school models and offering childcare to children of key workers and those who are vulnerable.

The council has also needed to cover IT costs to enable home working, buy PPE and administer business grants. In some areas, such as utilities and food, costs have decreased.

The report by the council’s Chief Financial Officer, Margaret McCrossan, states the authority and East Renfrewshire’s Culture and Leisure Trust “rely heavily” on external income, which has been lost due to the closure of facilities such as gyms, swimming pools and halls.

It also reveals income from Council Tax is expected to fall as “levels of unemployment rise”.

Additional costs are expected during the recovery from the pandemic too.

“Costs are likely to change significantly as we move through the recovery phases and councils adapt and redesign services accordingly,” the report states.

“There are also many unknown factors including the timing of the recovery phases, the impact on the wider economy and public behaviour and the potential impact of any future peaks in the outbreak, leading to further restrictions.”

Schools will need to be redesigned to make them safe for children and all facilities will require more cleaning, resulting in higher staffing and material costs.

The Covid-19 shortfall has been included in overall monitoring of the council’s budget. With the government grant increase and “minor variances” on normal expenditure, the end of financial year shortfall is forecast to be £8.55m.

Reported figures do not include the cost of the pandemic for the East Renfrewshire Integration Joint Board, which directs the East Renfrewshire Health and Social Care Partnership between the council and NHS Greater Glasgow and Clyde.

Around £890,000 has been allocated to East Renfrewshire’s IJB by the Scottish Government.

Total costs are expected to reach around £9m, with a significant chunk spent on social care, but: “The IJB expect Government funding to cover these costs”.

The council’s spending on capital projects will also be affected by the pandemic, with work on sites suspended, projects delayed, and costs set to rise due to new ways of working. The impact of this is currently being assessed.

Published The Extra On Line -

1/7/2020

News Politics Council

By Drew Sandelands
Wednesday, 1st July 2020, 8:42 am

East Renfrewshire Council calls for government funding to meet £8.5m shortfall

More Government funding is needed to plug a “sizeable” budget gap caused by the coronavirus pandemic, East Renfrewshire’s council leader has said.

Tony Buchanan said the local authority will continue to work with the Convention of Scottish Local Authorities (Cosla) to lobby both the Scottish and UK governments for more money.

Almost £4.5m has already been allocated to the council by the Scottish Government but the cost of responding to the pandemic, and a drop in income due to lockdown restrictions, mean a shortfall of £8.55m has been forecast by the end of the financial year.

Speaking at a digital meeting of the full council, Mr Buchanan said: “Our position is similar to all councils and we’re working on a daily, almost hourly basis, to update any figures that we have.

“Reserves and savings measures alone would be insufficient to address the sizeable gap for the council.

“Therefore, we will continue via COSLA, as well as our own mechanisms, to lobby the Scottish and the UK Government for additional grant funding and borrowing powers.

“I would add those borrowing papers need to extend not just for councils but for the Scottish Government, in order to try and alleviate some of the pressures that we know both us, as local government, and the public sector in general are likely to face.

“Due to the level of uncertainty nationally, it is recommended that we set a single year budget for 2021/22, rather than adopt a three-year approach as originally planned.”

Councillors agreed to use part of an extra £1.875m in grant money from the Scottish Government, which was confirmed in late February after the government set its budget, to cover £1.28m of unallocated savings.

They also ruled all council departments should be instructed to stop all non-essential spending with immediate effect.

Council directors will work over the summer on proposals to deal with the anticipated shortfall.