Covid-19 pandemic leaves States with £83.9m. bill

But the situation is not as bad as originally forecast.

The details were revealed in the States accounts, which were published last night.

It had been expected the pandemic would cost the States £99.1m.

Business and personal support formed the biggest part of the money, with £51.3m. paid out. That included £7.5m. in grants to small businesses, £35.6m in payroll co-funding and £7.7m. in specific support packages.

Aurigny formed the next biggest cost, with £28.3m. of losses, as the airline struggled to cope with reduced passenger traffic and tight travel restrictions.

For similar reasons, Guernsey Ports – which covers the airport and harbour – needed a £5.3m.

There was also £3.3m. of net revenue income shortfalls.

This was offset by £4.3m. of net expenditure, which was lower than budgeted despite increased Covid-19 related costs in some areas.

‘While this is an improvement compared to the forecast for the impact of Covid-19 – estimated at £99.1m. – included in the 2021 Budget, it nonetheless reflects how extraordinary a year 2020 has been,’ a States of Guernsey spokesman said.

In the Treasurer’s report it was noted other parts of the States had significant extra expenditure due to Covid, most notably in Health & Social Care services.

‘However, these were more than offset by reduced expenditure elsewhere because of the limitations placed on normal operational activity, including the deferral of non-urgent surgical procedures.’

Income tax receipts decreased from £349.2m. in 2019 to £328.5m. in 2020 – a decrease of £20.7m.

Elsewhere the States Accounts public sector pay costs rose 0.8% in real terms to £251m.

In terms of staff paid more than £80,000, the number rose by 80 to 405, when compared with the previous year.

This includes 119 nurses and medical consultants – an increase of 57, which broadly reflects the 2019 and 2020 pay awards for ‘Agenda for Change’ staff. That saw a 5% increase with effect from January 2019 and 5% with effect from September 2019, which were implemented in 2020 including payment of arrears.

Net investment returns in 2020 were £66.4m., which have been allocated to various reserves.