The city council of Exeter attempts to counterfeit its staggering loss of £11 Million by trimming high profile services such as grass-cutting and graffiti clearing. This astounding shortfall was due to the coronavirus crisis.
This week, the council’s current executive will debate on how to stay with the current financial plans from now until April. The council needs to look for ways to save around £1.7 million by this time and another £5.8 million over the following years
The additional expenditure and income losses acquired during the coronavirus crisis have reached to a total of £11.9 million. The lost income is predicted to be around £8.56 million, and more than half of that is from a drop of anticipated car parking revenue which is around £4.57 million.
Furthermore, according to the report, the commercial rent income is also expected to fall short by £1.18 million this year.
To try to compensate for the losses, the council has found a way to secure funds from different sources, which includes the use of a furlough scheme, a grant for COVID-19 from the central government, the use of general funds, and the repurposing earmarked reserves.
The reductions in expenditure being proposed also include the following: freezing on vacant posts, canceling of sponsorship on planned events and festivals, suspending The Citizen newspaper, and reducing agency staff and high-profile services like grass-cutting and graffiti clearing. However, these proposed savings are still subjected to debate and agreement among the members of the council.
There are no absolute redundancies as a consequence of the emergency budget. However, there is the probability of redundancies as an outcome of a few of the changes of the services outlined in the financial plan for the next two years, and the process to incur those savings may commence before April 2021. This will all be found on the Exeter City Council’s website, which will be debated this coming July 7.