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Council leaders brace for financial ‘day of reckoning’ following pandemic

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North-east council bosses are preparing for a financial “day of reckoning” in the aftermath of the coronavirus crisis, but they believe the region “will rise again”.

In the first week of lockdown, Aberdeenshire Council went from having 400 people working remotely to 4,000 as vast changes were made to how the body operates.

Over the course of a weekend, 17 education hubs were set up to support children of key workers – and staff were redeployed across departments to help services continue to run.

Jim Gifford has been releasing video updates on Aberdeenshire Council’s YouTube channel

But despite its best efforts, Aberdeenshire, along with its city neighbours, has taken massive financial blows as a result of the outbreak.

Council chiefs yesterday acknowledged they were facing a “hugely challenging” road to recovery.

Local authority leader Jim Gifford said: “At some point there’s going to be a day of reckoning on how much this has cost, and who picks up the tab for what is left.

“A huge amount of money has come through the UK and Scottish governments, it’s eye-watering.

“We’re looking at what the future of the council can, and should, be and what we can learn from this.”

The council’s deputy leader, Peter Argyle, explained how the conversation turned to the economy very early into the outbreak.

Grants from a newly established “phoenix fund” will help re-launch town centre economies and encourage people to shop local.

It will provide financial support for collaborative business-led projects in up to 26 larger and smaller towns across Aberdeenshire.

Mr Argyle said: “The impact on the north-east economy became apparent very quickly.

“The challenges on businesses and self-employed people are huge, so we looked at what we could do on a local level to use funds we have, or could redirect, to reach people.

“The town centre fund is called the ‘phoenix fund’ because Aberdeenshire will rise again.

“It will take a long time. But we will get there, I have no doubt.”

Peter Argyle hosts the infrastructure and services committee via Skype every four weeks

The council is also addressing how to market Aberdeenshire as a tourist destination for Scots – as international travel is likely to remain stalled.

Until a vaccine is developed for the virus, council leaders reckon the balance between welcoming visitors and protecting locals will be “tricky”.

Mr Gifford added: “Unlike many other councils, we are desperately trying to keep politics out of this and focus on people.

“We’ll work with both governments, other councils and bodies in the north-east to make this work.”

On a personal level, the council leaders last night praised staff for going “above and beyond” and members of the community for “stepping up to the plate”.

In particular, grants released through the council – whether it be business support boosts or community resilience funds – have led to a sense of unity within the region.

Volunteers Julie-Ann Whyte and Kelly Morrison have opened a COVID19 community support shop in the New Pitsligo, Aberdeenshire.  Picture by KATH FLANNERY

Mr Argyle said: “There’s been a fantastic response from our staff and our communities and I for one am very, very proud.

Mr Gifford added: “I’ve been reminded of what I already knew – that Aberdeenshire’s potential is phenomenal.

“But this isn’t just about putting things back the way they were.

“We’re going to build back better.”