THE Covid crisis for Winchester City Council has been less severe than feared but it has still taken a massive hit.

Civic chiefs say income in the 2021-22 financial years is 14 per cent down, below the 20 per cent that it had planned for.

The council is set to approve its budget for 2022-23 financial year and has also received a £1.3m boost from a delay in Government funding cuts.

But council leaders say the long-term impact of the pandemic will still force it to review its services.

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Cllr Neil Cutler, deputy council leader, said: "We had to make £3m cuts and 24 redundancies. The recovery has been better than expected but we are still 14 per cent down."

The recovery has seen a rise in parking, a high number of visitors and the return of shoppers to the High Street, said Cllr Cutler.

The council poised next week to approve a rise in its council tax of 2.7 per cent well below the inflation rate of 5.4 per cent. Charges for the new leisure centre and at Meadowside are being capped at 3 per cent to stimulate demand.

The £1.3m boost will be spent on:

* £450,000 on historic monuments including King Alfred's statue, Hyde Gate, the Buttercross and St Maurice's tower;

* £185,000 on more street cleansing, replacement street furniture and action on fly tipping;

* £100,000 for the council hardship fund to help struggling households;

* £250,00 to trial low-carbon bin lorries and/or buses;

* £150,000 on preparation for a food waste trial in 2023;

* £25,000 for the council’s City of Sanctuary commitments;

* £40,000 on bike storage.

Cllr Cutler said: "I am really pleased to bring forward a positive budget with clear plans to spend on essential services and to support much-needed work to address the climate emergency and improve neighbourhoods across the district.

"Whilst we cannot avoid some increase to council tax and other charges, we have been able to keep increases well below inflation. we have also included a number of measures to help those most in need."

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But he warned: "We are facing a difficult two-three years, with incomes down £2m a year and we are looking at service efficiencies and ways of generating income."

Many of the 24 redundancies were at the Guildhall and the council is not looking to re-employ them as functions at the building will be done in a different way. But the council is looking at around four new posts, including in legal. communications, economic development and planning.

The 'bounceback' in parking is strongest in the central area, and back to pre-pandemic levels, and slowest in park and ride which is more dependant on commuters. Parking income, the council biggest revenue stream, was 14 per cent down last year. Strategic director Richard Botham said: "We will need time to assess the impact on commuter parking. We know it will increase with ourselves and the county council returning to the office."

The budget will be discussed at full Council on Wednesday February 23.

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