Covid-19 predicted to cost £159 per person as Edinburgh's finances suffer

Edinburgh is facing a budget shortfall more than six times the size of Glasgow’s due to the coronavirus pandemic, new data has shown.

Data from the BBC’s Shared Data Unit shows Edinburgh has the second largest overall budget shortfall of £83.8 million, equivalent to £159 per resident in the Capital.

The cost of the pandemic has hit the city far harder than Glasgow, which expects to lose just £15 million, equivalent to £23 per resident.

However, Edinburgh’s shortfall per resident is well below Highland Council and Aberdeen City Council, who are set to lost the equivalent of £411 and £358 per resident respectively, or £96.9 million and £82 million in total.

Conservative group leader, Cllr Iain Whyte said the statistics were not a shock.

He said: “It is no surprise that Edinburgh is in that position when we have the lowest grant per head of any authority in Scotland, and the council tax collection is under pressure because of the economic shock of coronavirus.

“Let’s hope we can get back to something like normality as lockdown continues to ease but the council’s finances need to be looked at and any assessment of them by the Scottish Government needs to take into account Edinburgh’s particular needs and not just come from COSLA’s existing normal formula.”

Council leader, the SNP’s Adam McVey, said “positive dialogue” is ongoing with the Scottish Government to help tackle the budget crisis.

He said: “As the coronavirus pandemic continues to affect us all, the unprecedented challenge that now faces us as a Council is very real.

“As we move into phase two of lockdown, we continue to move forward with our plans to aid and support the recovery – both for the council and the city as a whole – and, quite rightly, supporting our communities and our most vulnerable residents remains our number one priority.

“At the same time, however, we also need to look at doing things differently, including how we deliver our services in future. A big part of our response to date has been built on positive dialogue with Government, directly and through COSLA.

“We’ll continue working with ministers on how Edinburgh can best emerge from the profound impact this crisis is having on our city and its finances.”

A Scottish Government spokesperson said: “We have taken exceptional measures in every area of government as we deal with the challenges of COVID-19 - and that is particularly clear in our support for local services. To date, Scotland’s councils have received £405 million in advanced payments this financial year, and by the end of July this will have risen to £455 million.

“This funding, which included weekly advanced payments to councils until parliamentary approval was secured, will help prevent local authorities experiencing cash flow. Councils received an additional £150 million in May, £255 million in June, and will receive £50 million in July.

“We will continue to work with COSLA and local authorities, as well as pressing the UK Government for urgent additional funding and flexibility for our partners in local government.”

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