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Derry City and Strabane District Council reveals it is losing around £700,000 a month because of coronavirus pandemic

Local authority says that at this point it faces being in a 'position of insolvency' by September 2020

Council opens applications for its Cultural Grants Aid Fund

Derry City and Strabane District Council has revealed that at this point it faces being in a 'position of insolvency' by September because of the coronavirus pandemic.

The full nature of the financial crisis facing the local council was made public for the first time today.

In a report by senior council officers brought before a special meeting of the council, it was stated that the council is currently incurring losses of around £700,000 per month as a result of the closure of facilities and services.

The local authority is also having to cope with additional waste management costs and 'exceptional' emergency expenditure as a result of the coronavirus crisis.

The council report stated: "This will likely be worsened following the first quarter as the impact of the pandemic hits Council’s rate-base and the current rates relief scheme for business comes to an end.

"Whilst a regional bid is currently being considered by Central Government, this has not yet been confirmed and may only part fund some of the financial loss being incurred.

"At this point, it is therefore clear that reserves will not be adequate to fund Council services for the year ahead and Council will be in a position of insolvency by September 2020."

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