Sunderland City Council struggling with energy pressures during cost-of-living crisis

Sunderland City Council bosses have reported how in 2022/23 they were forced to contend with numerous challenges linked to inflationary pressures.

Councillors outlined how issues such as the war in Ukraine have caused major uncertainty in the global economy, particularly in the energy markets, leading to “higher than expected global energy and goods prices”.

Reports which went before the ruling cabinet on Thursday (June 8) noted a total of £2.254m was drawn from council contingencies during 2022/2023 to address energy budget shortfalls.

Nevertheless the local authority managed to achieve an overall delegated underspend of £4.547million in its revenue budget for the financial year across its portfolio accounts.

Reports noted the underspend was primarily achieved through the receipt of £2.810m of additional income provided by the Integrated Care Board (ICB) to support adult social care pressures and delivery in the city.

Cllr Claire Rowntree, deputy council leader, stressed there were various issues impacting local authority finances over the past year and she was therefore pleased to report the “positive revenue outturn position”.

Speaking at the meeting, she said: “The ongoing challenges during the year of the legacy impacts of the Covid-19 pandemic and the significant inflation pressures and the cost of living crisis placed greater demands and costs pressures on our services.

“The most significant pressures related to both adults and children’s social care, a combination of demand, complexity and inflation, continues to put pressure on our social care budgets.”

Councillor Linda Williams, cabinet member for children, learning and skills, called on the Government to do more to help fund local authorities.

Speaking at the meeting, she said: “We are in a very, very difficult time.

“It does cause more complex issues that we need to try and unpick, many issues that come forward aren’t simple and to be able to solve them quickly and rightly, [compared to] 10 years, 15 years ago, it’s more costly.

“If you look nationally then you have to ask the question is it sensible to continue with austerity when they’re causing these absolute horrendous issues that can in some cases take months, even years to solve, instead of funding public services properly.”