£17m black hole warning sparks funding call

Council bosses have called for the Government to “level up” funding in County Durham as the authority faces a £17million shortfall due to coronavirus pressures.

Durham County Council has already received £33.2million in emergency cash from a £3.2billion government fund to help councils tackle COVID-19.

This included an initial allocation of £18.6million and a second reduced allocation of £14.6million.

However, costs and lost income as a result of the pandemic in County Durham are currently estimated at £50million, with the local authority facing a shortfall of around £17million.

Council chiefs called for assurances over future government funding after warning that coronavirus could affect the authority for years to come.

“The council’s second allocation of funding was reduced by 22% because the Government moved to a very crude population basis of sharing out the money, whereas the first allocation was based on need, “deputy council leader and cabinet member for finance, Coun Alan Napier said.

“Members of cabinet will know that I have argued year after year that resources need to be allocated based on need and we have again lobbied the Government to set out the requirements to fully fund the council’s COVID-19 pressures and to allocate any future funding based on need.

“I will be watching future allocations of funding with interest. The effects of COVID-19 are likely to be with us for years.

“I’m calling on the Government to ensure local authorities are properly funded to be able to lead on the recovery of our local communities and businesses.”