Virus costs city nearly £5m in council tax cash
Sunderland City Council collected nearly £5m less in council tax than expected during the first half of the financial year, new figures reveal.
The figures come as the Institute for Fiscal Studies said the impact of the pandemic means some councils may soon face difficult trade-offs for what they can afford.
Figures from an IFS report show the city council forecast it would collect a total £120.7m in council tax in in 2020-21.
With council tax collected over 10 months, expected income in the first half of the year was £64.1m, but it collected just £59.3m – £4.8m less than it hoped to in the first two quarters.
Figures from the report show 22,154 working age residents in Sunderland were claiming Local Council Tax Support between July and September last year, and 22,094 between April and June.
This means the council will take in £17m less in council tax revenue in 202021 than it could have.
The Local Government Association said it was encouraged by the Government's pledge to compensate 75% of lost income, but called on it to revise its funding package in next month's Budget to meet the financial challenges of Covid-19 "in full".
The Ministry of Housing, Communities and Local Government said the Government
has committed over £11bn to support councils in England.
A spokesman added: "This includes a guarantee to meet 75% of losses in council tax and business rates income this year, worth an estimated £800million, and £670million of new funding to enable them to continue reducing council tax bills next year."