The estimated financial cost of Covid-19 to East Lothian Council is £6.6million up to the end of June and rising, a new report says as it warns income from council tax and rent is already showing signs of strain.

The local authority’s finance chief Jim Lamond has said plans to make over £5.5million in cuts to the budget for the next three years were not going to be delivered in the current crisis.

And he said the latest estimate for the cost of providing the services required through the crisis was very significant.

He said: “The implications and scale of financial ‘asks’ on the council are significant, and likely to increase further as the implications of Covid-19 evolves.

“The most recent COSLA return, submitted from East Lothian indicated that the financial implications for the council projected until the end of June will exceed £6.6m, and the risk of this increasing further is significant.”

Mr Lamond said revenue from council tax and rent, which played a major part in their budget plans, was now being affected.

In a report for councillors he warned: “The recently approved budget plans are supported by significant revenue streams including council tax and rental income, much of which will now be difficult to fully realise.

“In addition, the council has already delivered over £31m of efficiencies in recent years with a further £5.5m planned across the next three years, much of which will now not be delivered.

“Work is currently on-going to identify and quantify the full impact upon the council and to identify any mitigation that can be put in place.”

The council’s budget plans had included the £5.5million in savings with over £3million planned for the coming year.

But Mr Lamond said: “Whilst it is still expected that some of the planned savings will be realised, it is likely there will be a shortfall in 2020/21, creating a recurring pressure going forward.”

His report revealed the local authority has received less than £1.5million from funds the Scottish Government received from a UK fund to support councils across Scotland to date.

He said £80million had been paid out for hardship and food funds with East Lothian receiving £965,000 to its hardship fund and £447,000 to their food fund.

And he said funds made available so far will “clearly not be sufficient" as lockdown continues.

In total,  East Lothian Council has received £18.772million to date with the majority of it - £16.69million – to provide grants to support businesses.

Mr Lamond said quarterly finance reports throughout the year would provide a detailed look at the situation but the council’s financial strategy may need to the reviewed and budgets may need to be revised.