Blackpool hoping for compensation over lost lockdown income

The council warned in July it was facing losses of between £9m and £18m from its eight council-owned companies with Blackpool Transport among the worst hit due to reduced services during lockdown.

Steve Thompson, director of resources, told the latest meeting of the council’s executive the figure for lost revenue now stood at around £14m, of which up to £10m could hopefully be recovered through the MHCLG (Ministry of Housing Communities and Local Government) income compensation scheme.

In an update to councillors on the town hall’s finances he said “the critical area is around our income.”

He said a bid for compensation for lost sales, fees and charges had to be made to the MHCLG by the end of September, and added: “I anticipate us securing between £9m and £10m so it is the vast majority of that pressure.”

Mr Thompson told the meeting, held on Zoom he had warned the MHCLG “that Blackpool would probably be one of those authorities that has a disproportionate claim for their size, in view of the tourism industry and particular income streams we have.”

The council lost income from attractions it owns including the Winter Gardens and the Sandcastle water park, both of which had to close during lockdown but have now reopened.

Mr Thompson said Covid-related overspends on council services of £14m would largely be covered by three tranches of government funding totalling £11.6m.

Children’s Services is still expected to overspend by £9.4m in the current financial year, but a financial strategy was in place to manage this.

Referring to spending as a whole, he said: “At this point I don’t believe it is time to panic.

“We’re in September now and I’m confident the income we will bring in from the compensation scheme, and other initiatives that are taking place behind the scenes to bolster our reserves and balances, will certainly improve the position as the year progresses.”