A series of cabinet reports on B&NES Council’s finances reveals that potential heritage and tourism losses from the threat of a fourth wave of the pandemic and further restrictions being imposed could mean a projected £1.9 m overspend at the end of the financial year.

However, the report notes that early action to deal with losses arising from the pandemic has brought the Council’s finances back on track.

The reports, due before cabinet as The Journal was going to press on Tuesday, highlight how – despite the pandemic – the Council delivered an on-budget outturn in 2020/21, with a slight improvement to its predicted end-of-year accounts. This was due, the report says, to the early actions taken by the Council to ensure financial recovery from income losses, especially in heritage and parking, as well as further underspends in adult social care services and the receipt of an additional Covid Grant.

However, it is clear that further financial challenges lie ahead unless additional Grant funding is forthcoming, as restrictions continue to impact income, particularly from the Roman Baths.

Councillor Richard Samuel, Deputy Council Leader and cabinet member for Resources and Economic Development, said: “I am delighted that through our early action in the face of the pandemic and our prudent financial management, we’ve been able to stabilise the Council’s finances without drawing too heavily on our reserves.

“It is a significant achievement, considering the financial pressures caused by the pandemic, with substantial loss of income from our heritage, parking and commercial rent income combined with Covid-related expenditure.

“We are in a position where we can press ahead with delivering on our Corporate Strategy commitments, particularly relating to tackling the climate and ecological emergency. It means we can continue to invest this year in our priorities to improve people’s lives by creating cleaner, greener communities, helping the local economy recover and protecting the most vulnerable.

“However, there are words of caution that I’d like to say. If the third wave is followed by a fourth wave and further restrictions that affect our key income streams are imposed, I have not ruled out the need to take emergency action to control expenditure.

“I’m under no illusions that we are out of the woods yet and we will continue to face financial challenges posed by the pandemic for a number of years.”

The Budget agreed by Council in February this year allocated £9.11m of investment to schemes which tackle the climate and ecological emergency, including two new Renewable Energy Funds totalling £1.9m for renewable energy projects and to retrofit the Council’s own energy plant and equipment, as well as the £5.11m Bath River Line project.

Since then, investment plans for the climate and ecological emergency have received a boost through Public Sector Decarbonation Programme projects for Cleveland Pools and Charlton House, bringing the total capital allocation to £10.109m. Funding has also been earmarked for transport schemes, including a £2.2m investment in Liveable Neighbourhoods to promote healthier, more sustainable communities and reduce car usage.

The pandemic delayed some capital schemes last year and so cabinet are recommended to approve re-phasing the majority of these into the current financial year. This includes £1.4m from the Council’s Transport Improvement Programme to deliver schemes which were delayed due to their complexity and the fact that staff were moved to work on emergency Covid measures.

The Council’s total borrowing of £243.5 million remains below its provisional Capital Financing Requirement of £326.9 million.