THE WAY in which council’s finances have been affected by the coronavirus pandemic was raised by Cllr Imogen Shepherd-DuBey in the first of two financial questions raised at the virtual meeting of Wokingham Borough Council’s executive on Thursday, May 28.
Cllr John Kaiser, executive member for finance and housing, said: “It is likely that there will be some delays in the capital projects within the programme, as the Covid-19 pandemic will undoubtedly affect the supply chain for the Council’s various contractors.
“However, the early signs are that the economy is starting to move again, and the construction industry is returning to work.
“The council’s senior leadership team are currently reviewing the capital programme with a view to considering any impact of Covid-19 on resourcing and potential changes to service requirements.”
He also pledged to report back any changes to the Executive.
Cllr Shepherd-DuBey wanted to know how the money lost by the coronavirus pandemic would be recouped. This includes potential deferent of contributions from developers as they complete new housing, known as Section 106 (S106) money.
Cllr Kaiser replied that (at this moment in time) he didn’t know the full extent of the problem, but the S106 money would most likely be deferred.
Where possible, he added, the council would take advantage of the current low interest rates to try and forward fund schemes, such as roads, before future developments happened.
“We will have to borrow that money, at a decent rate, until we get the money from the developers,” he said.
“I would hope that we don’t stop anything, but we may find ourselves in a situation where we have to delay something.”
Before he asked the second financial question, Cllr Tahir Maher’s tie was praised by Cllr John Halsall. He wanted to know more about the council’s financial forecast as a result of the coronavirus pandemic.
Cllr Kaiser replied: “The direct costs for 19/20 were £104,000, and these were offset by the first tranche of grant funding from the Government which was received before the year end.
“Indirect costs were absorbed by the services as these were minimal for the last weeks in March, and these figures are also in the outturn figures already.
“The main impact on the Council will be in the current financial year (2020/21). The grant funding, less that used in 19/20, has been carried forward into the current year; even with this and the second allocation from central government, the Council will still face a pressure on its 2020/21 budgets as a result of the response to the Covid-19 pandemic.
“Although our Financial Management arrangements remain sound we have unprecedented challenges as a result of this crisis and therefore we must continue to ensure our resources are targeted to those in our community most in need.”
Cllr Maher wanted to know if there was anything to be cautious about now.
“We feel we’re on top of the numbers,” Cllr Kaiser replied, adding that he was reporting to party leaders on a weekly basis and he hoped to have a clearer picture later.
