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Tue, 02 Feb 2021
Douglas Council says its financial difficulties aren’t as drastic as initially feared.
They were described as being at an ‘uncomfortably low level’ in July last year following the first coronavirus lockdown.
Losses of up to £1.8million were predicted due to a lack of income from trade waste, Douglas Golf Course, and the cancellation of the TT.
However, Council Leader David Christian has revealed that was a worst-case scenario.
“We were being very pessimistic at the time. Nobody knew what was really going to happen, how much longer [lockdown] was going to go on for.
“Thankfully, we came out of it. People came back into work, we saw footfall within the streets start to increase again quite steadily compared to what it was, so it was nowhere near as drastic”, Mr Christian said.
Ten months ago, a report to council leaders from the Director of Finance outlined ‘excessive pressure’ felt by the authority as a result of coronavirus.
It advised reserves were ‘insufficient’ to sustain the council without the income of rates, meaning demands for rate payments could not be cancelled.
The levy for the 2021/22 financial year was increased by 1.6 per cent, with the announcement last week that the rate will be set at 451 pence in the pound.
Despite the problems brought about by the Covid-19 pandemic, Mr Christian is optimistic the council will bounce back quickly.
He said: “I would say the council’s finances are still on a stable footing. We still have reserves, we’ve used some of those reserves this year to finish off some outstanding loans which has helped to cushion the impact on the rate this year.
“I think that the major one-off hits we’ve already absorbed.
“Providing we come out of lockdown, the vaccine starts to roll out and we don’t have any more huge hits like this, I would say it’s a good positive way forward for the town.”
Council Leader David Christian spoke to Local Democracy Reporter Chris Cave:
David Christian on council finances
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