Sunderland 'staring down the barrel' of a care crisis, says council chief

That is the warning from city leaders as they count the rising cost of the coronavirus outbreak, amid fears the most vulnerable families could be those hit hardest.

Finance chiefs for Wearside are grappling with a budget black hole currently worth about £35million as a result of COVID-19 and which is yet to be filled by government handouts.

“When cuts are made to local authorities, it is the most vulnerable people who suffer,” said Graeme Miller, leader of Sunderland City Council.

“That is what we are about to see if the Government does not stick to its pledge to ensure that local authorities are not allowed to suffer a black hole in finances, brought about by COVID-19.

“Sunderland is a city that is suffering disproportionately already – we know that the health and social inequalities we face here are a factor in that, and those have been brought about by years of savage cuts by this Government.”

Early in the coronavirus outbreak, local government minister Robert Jenrick told councils the government would stand ‘shoulder to shoulder’ with them and promised to ‘do whatever is necessary’ to back them financially.

This saw a £1.6billion fund set up to support councils later doubled to £3.2billion.

Over two rounds of funding, Sunderland has so far received more than £18million, which, although welcomed by city leaders, they add is not enough to repair the holes in their books.

They have also criticised the allocations made to local authorities, claiming northern areas have lost out compared to the rest of the country, especially in the second tranche of handouts.

Estimates suggest councils across the country could be collectively in the hole to the tune of £10billion, due to the virus.

Coun Miller did praise the government furlough scheme to protect employment, but also warned it could mask an ‘impending crisis’.

He added: “We are staring down the barrel of a social care crisis of unprecedented proportions, and the only way we will be able to meet the needs of this city is with adequate support from the government.

“We must not see the most vulnerable in society shoulder the burden on COVID-19.”

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