Anger over 'unfair' deal for Sunderland as £35million financial black hole revealed

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, leaders on Wearside have been left disappointed by a ‘terribly unfair’ package of measures which saw them handed less than wealthier parts of the UK.

“[Local Government Secretary Robert Jenrick] and Boris Johnson, as prime minister, have indulged in political games over the distribution of 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 distributing to local government, thereby robbing residents in Sunderland of approximately £3 million.”

Coun Stewart was speaking at a meeting of the city council’s ruling cabinet on May 6, which was held online and broadcast via Youtube for the first time due to social distancing restrictions.

Early in the COVID-19 crisis the government announced a £1.6billion fund to support councils, of which Sunderland received almost £10.6million.

The scheme was later doubled to £3.2billion, but Sunderland’s allocation did not, shrinking to £7.6 million in the second round of hand-outs.

Other local authorities saw their share rise however, such as the Royal Borough of Windsor and Maidenhead, home of former Prime Minister Theresa May, and an example cited by Coun Stewart after it’s own grant was increased by more than £1million, second time round.

Previous estimates of COVID-19’s cost to Wearside had suggested a £25million financial shortfall.

Coun Stewart added: “The anticipated cost to this council, and therefore the residents of Sunderland, has been revised and it’s anticipated to be somewhere in the region of £30 – 35 million.

“After taking into account the government support received so far, this leaves a shortfall of up to £17million for the people of Sunderland.”

Graeme Miller, the leader of the council, called on ministers to ‘honour’ previous promises to back local authorities through the virus outbreak.

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