SCOTTISH Borders Council (SBC) is struggling to make ends meet due to the financial cost of the coronavirus pandemic. 

The local authority has projected pressures of £20.4m for 2020/21, but its resources – including emergency coronavirus funding from the Scottish Government – total £19m, leaving a gap of around £1.4m.

At a meeting of the council’s executive committee on September 15, officers warned councillors they will need to dip into the authority’s reserves to meet any budget shortfall at the end of the year. 

The reserve fund, which currently sits at £6.3m, will then need to be topped up during the next financial year, putting further pressure on the council’s future finances. 

A report, presented to councillors at the executive meeting, reads: “In order to support the council’s response to the COVID-19 pandemic, funding has been made available by the Scottish Government. 

“The level of support provided has not, however, been sufficient to fund the full financial impact of COVID-19 including the significant impact on the level of income which funds local services. 

“Additional Scottish Government funding in the form of grant has addressed 33 per cent of the total pressure identified, with the welcome easing of restrictions in the use of specific grants within Children and Young People taking this up to 50 per cent.

“The remainder of funding has required to be found from within existing council budgets and reserve balances.”

Aside from the pressures exerted on the council by the coronavirus pandemic, SBC also has to find £12m of savings during 2020/21.

To date, the council has achieved £5.2m of permanent savings, while £3.2m of savings are set to be achieved and £3.6m of savings have been achieved by alternative, temporary arrangements.

The report continues: “The current shortfall of £1.393m plus any further impacts, beyond the estimated shortfall, which are not yet identified will require further funding to be identified in order for the council to successfully manage the financial impacts of COVID-19 by March 31, 2021.

“Even if a second wave does not transpire it is possible that further measures may have to be taken to address risks around COVID-19 and it is possible the full costs of responding to COVID-19 are not yet evident.”

Mid Berwickshire councillor Mark Rowley, who acts as the authority’s member for finance, said: “We’ve been through an incredibly turbulent time in recent months.

"The report reflects that the council is effectively a business, and like every other business it has had incredible shocks during recent months. 

“I want to congratulate the work of officers, particularly on the savings – when we were all working helter skelter from kitchen table and back bedrooms, to have achieved this level of permanent savings is a matter of real congratulation.

“Behind that figure is an awful lot of day-to-day work and thought. 

“We’ve lost £1m in planning income. These are really significant sums that are going to cause us real trouble."