Video sets out impact of Covid-19 on Highland Council budget
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Updated financial modelling has been presented to a meeting of Highland Council, with a revised budget gap of £47.7 million now forecast before additional government funding is applied. Applying confirmed government funding would reduce the gap to £35.7m.
The budget leader, Councillor Alister Mackinnon, said: “At this stage, it still remains incredibly difficult to fully assess the impact of Covid-19 on the council’s budget, and we will continue to update our assessment as the ongoing situation develops and further information is received.
“While the figures have improved from those reported previously, any adverse setbacks in the route map out of lockdown will likely widen the anticipated budget gap.
"We intend to reduce the potential financial impact further by actions to control Covid response spend, by reprioritising existing resources, controlling ongoing expenditure and reassessment of cost pressures. It is important to remember, however, that we remain in very uncertain times.”
Previously there had been reports of a deficit of between £65 million to £97 million.
The council said in a statement: "Due to the unprecedented nature of the current financial climate any scenario, modelled requires significant assumptions to be made with no historic basis on which to found it. This in turn brings significant forecasting risk."
A video has been created to explain the impact of Covid-19 on the budget and how the gap has been estimated.
