Government accused of ‘robbing our city £3M
Sunderland council chiefs have again criticised Government ministers after it was revealed the city faces a funding black hole of up to £35million.
A combination of plummeting income and rising costs caused by coronavirus has pushed Sunderland City Council’s (SCC) finances, and those of local authorities across the country, deep into the red.
But despite promises of cash from Westminster, leadersonWearsidehavebeenleft disappointed by a ‘terribly unfair’ package of measures which saw them handed less thanwealthierpartsoftheUK.
“[Local Government Secretary Robert Jenrick] and Boris Johnson, as prime minister,haveindulgedinpolitical gamesoverthedistributionof this funding,” said Coun Paul Stewart, SCC’s cabinet secretary.
“Sunderland, as we now know, did not receive another £10.6million in support as hoped. The minister changed the existing formula for distributingtolocalgovernment, thereby robbing residents in Sunderland of approximately £3million.”
Coun Stewart was speaking at a meeting of the city council’srulingcabinet,which washeldonlineandbroadcast via Youtube due to social distancing restrictions.
EarlyintheCOVID-19crisis the government announced a £1.6billion fund to support councils,ofwhichSunderland received almost £10.6million.
The scheme was later doubled to £3.2billion, but Sunderland’s allocation did not, shrinkingto£7.6millioninthe second round of hand-outs.
Other local authorities saw their share rise, such as the Royal Borough of Windsor and Maidenhead, home of formerPrimeMinisterTheresa May, and an example cited by Coun Stewart after its own grant was increased by more than £1million, second time round.
PreviousestimatesofCOVID-19’s cost to Wearside had suggested a £25million financial shortfall.
Coun Stewart added: “The anticipated cost to this council,andthereforetheresidents of Sunderland, has been revised and it’s anticipated to be somewhere in the region of £30-35million. After taking into account the government support received so far, this leaves a shortfall of up to £17million for the people of Sunderland.”