Axe set to fall again as Sunderland faces another £10million in cuts

Council bosses face a near 10million grants cut

Council bosses face a near 10million grants cut

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Sunderland City Council is to lose almost £10million in funding next year, it has been announced.

Figures from the Department for Communities and Local Government show that the authority will get £9.98million less from the Government as part of its annual settlement grant.

The figures have been published by the Government to show how individual local authorities will be affected by a £1.7billion cut in Government grants for local councils nationwide announced by the Chancellor George Osborne in his Spending Review statement in November.

The cuts mean that spending per household in Sunderland will fall by £78.

Councils across the country are set to see their funding cut by 2.8% next year as part of a shake-up of the way town halls are financed.

Under the changes, by 2020 authorities will raise money through their council tax and the retention of all the business rates levied on firms in their area.

Authorities will be able to raise council tax by 2% before triggering a referendum, but a central government funding scheme aimed at encouraging town halls to freeze the levy has been scrapped.

In his Autumn Statement, the Chancellor had already given town halls the power to raise tax by an additional 2% to fund social care.