Coronavirus could cost Richmond Council more than £20m this year, putting finances at risk if more funding is not provided by the government.

The figures were revealed at this week's Finance, Policy and Resources Committee (June 29).

Coronavirus has so far cost the council £7.1m in both extra money being spent and lost income, and is predicted to amount to £22.4m by the end of the year.

It is thought that environment and community services will see £12.1m of income lost this year, largely due to a loss of money from sports bookings and parking.

Mark Maidment, director of resources and deputy chief executive, told the meeting: "Roughly speaking we will have something like a third of our expenditure funded by government, and that's pretty consistent with the message you're hearing nationally from the likes of the Local Government Association."

He added that there were "significant discussions" ongoing with the government, and the team is hoping to hear an announcement in the next week about further funding for councils.

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He said councils were hoping for more of "a holistic overarching settlement" than the grant funding provided so far, but added: "I'm not sure if I was a betting man that I would entirely hold my breath."

Lost council tax and business rates

Mr Maidment also noted that the council was also predicting more than £9m in lost council tax and business rates.

But he warned this was only based on information from the first two months of the pandemic.

"The range of possibilities around these numbers is still quite significant," he said, adding that there will be a better understanding of the council's financial position in July.

Importance of future funding

While he acknowledged that the council has strong enough reserves to "manage OK" this year, there is some concern that finances would be "severely under strain" if there is no more funding.

He said: "There will be councils that will be in a worse position than that and clearly they will be looking to government with more urgency.

"But frankly even from our own position, beyond this year, if the numbers were to remain the same and we were to get no further funding going forward then our finances would be severely under strain from next year onwards."

Council leader Gareth Roberts remarked the financial picture was "starkly grim" but that the council "has to be forewarned".

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