A REPORT into the financial impact of the Covid pandemic has revealed that almost a quarter of workers in Bolton have been placed on furlough at some stage this year.

The report, which was presented to Bolton Council’s cabinet this week, paints a grim picture of the impact financially to the local authority with an estimated hit of uncollected council tax of £9.7M and business rates of £3.6M.

Written by chief executive Tony Oakman, the report ‘Post Covid-19 fiscal challenges of Bolton Council’ updated members on the financial to challenges to the authority of the past seven months.

The report states that of the 177,000 people of working age living in the borough 41,000 had been furloughed at some point this year and 10,000 had claimed self-employment support.

Around 15,000 residents had claimed unemployment benefits.

In the report, Mr Oakman set out the impact of the pandemic on finances.

He said: “The council was expecting to incur around £14m of additional costs and around £24m of lost income.

“Of this lost income circa £13M relates to the council’s collection fund account.

“The government has made available a number of funding streams, including three emergency funding payments totalling £20M plus specific money for infection control and track and trace totalling £4.3M.

“An additional £4.4m can be reclaimed from the CCG.

“While there are several assumptions that have to be made in forecasting what the financial impact of the virus will be, it is important to note that this is unlikely to be the worst-case scenario.

“Rather it is an estimate of the most likely impact based on current rates of infection and expectations around lockdown.”

Mr Oakman said the pandemic had ‘exposed and increased the fragility of an already stretched adult social care system’.

He added: “Continuation of unfunded Covid19 costs added to future demand pressures and the impact of a rise in the living wage, risks the ability of local authorities to adequately resource adult social care into the future.

“As a pre-requisite component of a sustainable health and care system, this could have significant impact on the demand for, and cost of, NHS services.”

The report revealed significant additional costs for public health services which included working with the social care sector to ensure the correct use and provision of PPE as well as other infection control input

into social care.

The total expected to be invested in public health across Bolton to support management of the Covid19 pandemic was said to be £2.1M.

Other financial impacts include an estimated loss of council sales, fees and charges income across Bolton of £3M over the year.

The report said that extra funding from government had provided £20m to fund the costs and loss of income in the financial year.

However, there remained an impact of £10.5M and it was uncertain whether that would be recovered from government.

The report, concluded: “It is clear there will be a significant ongoing financial impact both in terms of continued higher costs and an ongoing continued suppression of income.

“The impact of these financial losses after the long period of austerity will  without further funding and other flexibilities, leave councils facing a serious financial challenge.

“Those challenges come at a time when the role of councils and public services continues in supporting the recovery from Covid.”