Households and businesses struggle to pay bills following lockdown

Finance chiefs are forecasting a "worst case scenario" deficit of £22.7m - an £18.2m council tax deficit and £4.5m drop in business rates.

The authority is expected to get £331m from council tax and business rates over the next year.

But lockdown has damaged the economy badly.

In a report, officers say: "Covid-19 is forecast to have a significant impact on revenue streams both for 2020/21 and for future years.

"This is both from an increase in people on council tax support, leading to less council tax receivable, plus a reduction in the business rates payable across the city.

"The forecast position for council tax is a deficit of £18.2m. This is primarily because of a forecast increase in the number of council tax support claimants of £4.5m and an increase in the bad debt provision of £13.7m.

"This is in anticipation of households struggling to pay their bills as a result of the Covid-19 pandemic.

"The deficit on business rates is primarily made up of an increase in the losses on collection and the increase in the bad debt provision, again this is a direct result of the Covid pandemic, resulting lockdown and anticipated closure of businesses."

The council says it will need to keep a close eye on the situation.

"Not all of these increases have materialised yet however they are forecast to be recognised as the year progresses. Further analysis will be done on the evolving position over the next four months."

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