Sunderland City Council warns of more than £6million in cuts

City leaders are planning to cut £6.673million in spending on services as Sunderland City Council tries to make ends meet.

The council's Cabinet, made up of senior councillors, will discuss next year's budget at a meeting on Thursday, December 7.

The report to Cabinet warns a £50.1million black hole in the council's finances means difficult decisions must be made.

Leaders of the council's three political parties wrote to Chancellor Jeremy Hunt before the Autumn Statement calling for extra funding to continue work on supporting struggling communities.

It outlined how, in common with other councils, Sunderland is facing significant cost increases in:

• Children’s social care as a result of rising costs and demand pressures 
• Home to school transport for children with special educational needs and disabilities
• Adult social care, driven by higher demand and rising costs resulting from inflation
• Homelessness services.

Cabinet Secretary, Councillor Paul Stewart said: "Regrettably, there was no cheer in the recent Autumn Statement for councils and we are waiting to hear more on what might be announced in the Local Government Finance Settlement.

"Because of this there remain major uncertainties relating to Government funding, uncertainty on the state of the economy with significant inflation, and increasing pressures on council services as demand and costs continue to rise for both adult and children's social care.

"Nonetheless, we have to plough on developing plans and possibilities for what could happen in the New Year and in years ahead. The report to Cabinet makes for some difficult reading as we begin considering a savings programme of £6m and developing more details on how we are to achieve that. We not only have to balance the books but continue to meet the needs and demands that are placed on our services.

"Our longer-term position includes how, as the report sets out, that we continue to review staffing arrangements. As part of next year's budget some currently vacant posts may not be filled and looking further ahead we must continue to monitor staffing, what the council provides and how this is all done, funded and costed."

Planning for the 2024/2025 budget is already considering an anticipated council tax increase of 4.99%.

This is in line with Government assumptions and is composed of 2.99 per cent for helping fund day-to-day services and two per cent for the Social Care Precept.

The 2023 council tax increase was 2.99% and less than the Government’s assumption that councils could raise it by 4.99%.

Sunderland's council tax, which helps finance around £16 for every £100 in the services budget, is the lowest in the North East region.

Cllr Stewart added: "Since 2010, Sunderland has lost more than a quarter of its core spending power (27%) and yet more and more demands are being placed on it. And alongside these demands, council tax payers are being asked to pay more and more."

He said planning for next year's budget continues and the £6.673million of savings and efficiencies identified so far include the staffing reviews where vacant posts are not filled, plus reviews of fees and charges and reductions in expenditure.

Further details will be presented to the Cabinet at the beginning of next year.

The majority of the council's day-to-day services are financed by Government grants. This year's allocated budget is £759.8million including £201million (more than a quarter, 26 per cent) going towards adult social care. Ten years ago the adult social care budget was £114.8million and 17% of the services budget.