Coronavirus costing Watford Council in excess of £1.2 million

Estimates suggest that the loss of fees from council services such as parking, planning and pest control could cost the council almost £1million.

And additional costs associated with the outbreak – such as additional staff, IT and the need to house rough sleepers – are expected to be just short of £300,000.

Emergency government funding allocated to the council this week of £959,000 has helped plug the gap - but the council will still need to find ways of saving costs, particularly if "things don't return to normal" within three months.

The financial outlook for the council is included in reports for the meeting of the Watford Council’s cabinet on Monday.

At that meeting, councillors will hear that all departments are now being asked to avoid ‘unnecessary additional expenditure’.

And there will be proposals to bring forward a new budget strategy paper once Covid-19 figures are clearer.

Speaking in advance of the meeting, elected Mayor Peter Taylor praised the council’s response to the Covid-19 outbreak.

But he also said the government needs to be clearer about what long-term support they will receive.

Mr Taylor said: "We've been working very hard to support everyone in our town through this crisis.

"Whether it be through making sure we continue to provide important local services, providing food parcels to vulnerable people and housing rough sleepers; I am proud of the way we have responded to this challenge.

"This new funding from government is welcomed, but we all know this crisis may continue for many months to come. We have seen a big fall in our council’s income and extra spending on key services.

"We need to know what funding we will be getting over the long term so we can continue support our town through these challenging times. This funding is welcomed but the financial challenges we face are very significant."

According to the report to the council, the estimated cost of rehousing rough sleepers in Watford for three months is £180,000.

Other costs include additional staff (£49,500), IT costs (£17,670), home working allowances (£18,720), funeral storage (£9,600) and other items (£22,240).

Meanwhile estimates show that the council expects to lose £255,000 from car parking, £222,000 by waiving the leisure provider management fee, £318,00 in planning fees and £37,500 from pest control.

It has also been estimated that there is a potential loss from the rent of community assets of £150,000, as well as £16,800 from smaller items.

In addition the report also suggests there could be an impact on council income, as a result in falls in council tax collection.

The report says council tax collection rates are 0.6 per cent lower than last year – equivalent to £400,000.

And it points to an expected increase in residents applying for the council tax relief support – which would reduce income further.

According to the report: "Covid-19 is having a widespread impact on local authority spending throughout the country and had been particularly significant for district council’s with much of the funding to date going to Counties in two tier levels."

But pointing to Watford’s position in particular, it states: "Watford remains in a much stronger position than a number of district councils and has the ability to manage its financial response in a controlled way over the medium term."

The council will meet virtually on Monday 4 May at 7pm. The meeting can be viewed by the public online.

Watford Borough Council has also received a grant from the government of £17.288 million, which will help provide for small and medium-sized businesses.

According to government figures, the council has identified 1,157 hereditaments as of April 26, with 914 receiving a grant a so far to the total value of more than £12 million.