Coronavirus could cost North Herts District Council £1.4m in annual parking revenue
- Credit: Archant
North Herts District Council are expecting to lose £1.4m this year just in parking revenue, as a consequence of coronavirus.
The news was announced at a meeting of NHDC’s Finance, Audit and Risk committee earlier this week.
Addressing the committee, Ian Couper, resources service director at NHDC, revealed that there was a 90 per cent reduction in parking ticket income in the district in April and May as a result of COVID–19.
The council also lost out on season ticket renewals and resident parking permits that would normally boost their coffers.
Overall, these translate to a loss of £216,000 loss of income each month.
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One model used by the district council predicts a loss of £1.4 million, just from parking revenues, over the year as a result of COVID–19.
Addressing the councillors, Mr Couper admitted: “It [parking] is certainly one of the biggest areas in terms of hits on our finances.”
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More detailed reports on the financial impact of COVID–19 are expected to be presented to the council next month.
Commenting on the news Ian Albert, NHDC executive member for finance, said: “There will be a report to cabinet in July detailing the estimated financial impact of COVID-19. This will support the consideration of the Council’s medium term financial strategy which will also be reported to the same meeting.
“In the meantime, we will also continue to petition the Government for further additional funding, alongside almost all local authorities across the country.
“Local authorities like NHDC have been expected to take on additional responsibilities, while facing significant reductions to our income. The Government need to make good their promises to fully support local government through this pandemic crisis.
“However, the council has built up its reserves over a number of years to give it time to react to expected reductions in Government funding.
“Our reserves are forecast to be sufficient to cover the impacts of COVID–19 and in the absence of any other funding would be used for that purpose.
“But this would then have an impact on the ability of the council to be able to respond to any future funding reductions. This will need to be addressed at the next budget setting round in early 2021 and in our medium-term financial strategy.”