MONMOUTHSHIRE council could finish the 2020/21 financial year with an overspend of nearly £10.5 million, a council report has revealed.

A full council report on the financial implications of coronavirus has revealed that the county council could be looking at an overspend of between £3 million and £10.4 million.

However, a report will be presented at the end of the month with further details on the current projected forecast for 2020/21.

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The council says that it has been impacted “significantly” by storms Ciara and Dennis and the coronavirus pandemic.

The report says: “Services and existing capacity has been redirected and redeployed to ensure that the council met its core purpose of protecting life. This has seen additional unbudgeted costs being incurred.

“Many income generating services have had to stop in order to comply with UK and Welsh Government guidance. The income loss and shortfall is significant and ongoing.”

The council report also says that there is a delay in the implementation of some budget saving proposals for the financial year because of the redeployment of resources.

The council also has concerns over the uncertainty of the finances.

“Announcements by both Welsh Government and UK Government have been made and have confirmed levels of commitment to support local authorities,” the report says.

“There is a lack of clarity as to when Welsh local authorities will have certainty around the level of funding to be received.

“Council is unlikely to have all of its costs and pressure met by Welsh Government. The question therefore become one of how significant is the shortfall that needs to be managed in year and will Welsh local authorities obtain any flexibilities to spread the burden over more than one financial year.”

The report will be discussed at the full council meeting on Thursday (July 16).