Agenda item

To consider a report outlining the risks and associated mitigation strategies associated with changes to parking revenues and other income streams as a result of the Covid-19 pandemic.

OSMC considered a report (Agenda Item 8), which outlined the risks and associated mitigation strategies associated with changes to parking revenues and other income streams as a result of the Covid-19 pandemic.

Melanie Ellis introduced the report. She confirmed that Central Government had provided three main sources of Covid funding:

·         £9.6 million of non-ringfenced funding, which had been allocated to the Covid response;

·         Specific Covid-19 grant funding;

·         An income compensation scheme to provide support to Council where there had been losses due to Covid-19 (the Council had lost £4.4 million, but were expecting to secure £2.2 million of reimbursements).

She highlighted the main areas where income had been lost, with car parking being the most significant. She indicated that the Council was not allowed to claim for commercial income losses.

In terms of mitigations, she noted that non-ringfenced funding for Covid response had been made available for 2021/22. She explained that the Council had been allocated sufficient funds to mitigate against all losses.

She explained that within the Medium Term Financial Strategy, provision had been made in future years in case Covid income stream losses became more permanent, including £900,000 for car parking.

She noted that the third mitigation was through individual services with car parking and leisure services being most affected.

She highlighted that demand for some services had been suppressed as a result of Covid, which would be financially beneficial.

Councillor James Cole noted that West Berkshire Council appeared to be worse affected than other unitary authorities and asked if it was more dependent on parking revenues.

Melanie Ellis was unable to provide detail on individual income streams for other local authorities, but offered to investigate further.

Action: Melanie Ellis to provide further analysis of Covid income losses for other unitary authorities.

Councillor Lee Dillon noted the £900,000 set aside to off-set forecast parking losses and asked if a flat rate had been applied across all car parks or if different rates were applied at different sites. He also observed that Appendix A showed how losses would impact on services areas right across the Council.

Jon Winstanley noted that the car parking mitigation had been primarily informed by what was happening in the town centres, which accounted for the bulk of the Council’s parking income. He acknowledged that there would be differences between car parks. He undertook to share the calculations.

Action: Jon Winstanley to provide further detail on calculations for forecast car park income losses.

Councillor Garth Simpson asked if there were assumptions about the move to online shopping and declining retail footfall on car parking and business rates, since there was a strong inter-relationship.

Melanie Ellis stated that the Council was not that advanced in their forecasts at this point, since the UK was just starting to come out of Covid lockdown, but this would be looked at in future.

The Chairman noted that the Council was relying heavily on Central Government to cover shortfalls and highlighted the risk that this support would not be provided indefinitely.

Councillor Ross Mackinnon acknowledged that Central Government support had been extensive and had made the financial position of the Council much more benign. He highlighted that £3.2 million of non-ringfenced funding had been provided and indicated that he expected support to continue in the coming year.

Resolved that: the report be noted.