Latest cash handout for city is ‘simply not enough’
fears mount that the effects of the COVID-19 outbreak could continue to be felt for years, with the cost to the city now estimated at more than £40m.
Coun Paul Stewart, the council’s cabinet secretary, said: “The pandemic is obviously having a significant impact on the council this financial year.
“I am increasingly concerned about the impact into future financial years as the financial hardship for our residents, businesses and the council will not be limited to the short-term.
“While the additional allocation is welcomed, it is simply not enough.
“The Government must honour its commitment to support local authorities this year and into the future.”
The most recent round of funding for English councils, the third since the start of the pandemic, saw Sunderland handed an extra £2.8m.
Previous handouts were worth £10.6m and £7.6m, giving the city about £21m in total to deal with rising costs and plummeting income from sources such as council tax and parking charges, due to the virus outbreak.
At a meeting of the council’s ruling cabinet on July 14, held before confirmation of the latest funding allocations, Coun Stewart warned the council was facing the prospect of ending the year overspent by £10m.
The government has promised a new scheme to provide further support for local authorities, which is expected to partly cover the costs of “irrecoverable income losses from sales, fees and charges”.
Local Government Secretary Robert Jenrick explained that: “Councils are playing a vital role in our national fight against coronavirus, providing a lifeline for so many and supporting communities at a time when they need it most.
“That’s why we are giving them an extra £500m – taking our total additional funding provided to £4.3bn.