THE financial impact of the coronavirus pandemic on Fife Council is estimated to be £30 million.

And that figure is rising as it covers just 14 weeks of lockdown with a warning that the total cost could be much higher.

Head of finance Elaine Muir said: "The financial implications of COVID-19 have been significant for the council as it has mobilised to deal with the pandemic across the communities of Fife.

"The additional costs to the council during the lockdown period are estimated to be in the region of £30m.

"Of particular significance is loss of income from a range of services that cannot be provided under the current restrictions.

"Additional costs have also arisen as a result of the mobilisation and from delays in construction works.

"These additional costs will increase going forward because of the likely restrictions that will be in place for some time to come."

A report about the known and estimated financial consequences of COVID-19 will be presented to councillors today (Thursday).

In it, Ms Muir states: "The current situation poses significant financial risk to the council."

The fight against the virus led to increased costs including more Personal Protective Equipment (PPE), overtime and agency costs, while there is a "significant" loss of income from areas such as car-parking, out-of-school childcare and school meals, the closure of facilities like gyms and swimming pools and subsequent lost business.

The report said income lost in relation to work carried out by building services, transportation and property services was "in excess of £10m".

The council won't bring in as much money from council tax, non-domestic rates and council rents, and Ms Muir warned that cuts and savings identified in February's budget may be delayed.

While energy costs have fallen due to buildings being closed or used less, travel costs are down and some council vehicles haven't used as much fuel, these savings "will be marginal in comparison with the pressures that the council faces".

Ms Muir said the "full impact on income will not become apparent for a number of months" and would also depend on how the Fife economy recovers.

There is support from the Scottish Government and, in March, the First Minister announced a package of measures totalling £350m.

There were subsequent funding announcements to help the economy and support businesses and so far Fife has been allocated just over £81m.

The Scottish Government said earlier this month that a further £155m of 'Barnett Consequentials' will be divided among local authorities – it's not yet known what's Fife's share will be.

Ms Muir said: "Based on information gathered to date, the estimated financial impact is of the magnitude of £30m for the first three months of the current financial year before mitigating actions have been taken.

"This figure must be heavily caveated because it takes no account of financial implications of a phased easing out of lockdown and focuses specifically on the short term assuming a 14-week lockdown period with the assumption that normal business resumes thereafter.

"It is becoming apparent that this is not going to be the case and that as decisions emerge on how services will have to operate going forward, further financial consequences will need to be factored in to the estimates."

The £30m figure does NOT include the separate mobilisation plan that has been drawn up for the health and social care partnership that currently totals £26.8m.

So far, there's £3.4m from Holyrood towards the cost and Ms Muir said: "There is a risk that if costs in the mobilisation are not fully funded by the Scottish Government then there may be a financial impact on the council."

She concluded that a funding strategy would need to be developed "to both mitigate and finance the council’s losses" and there may need to be an "in-year reconfiguration of the council’s budget".