Not a penny! Cash-strapped Black Country councils miss out on £300m Government grant

Communities secretary Greg Clark has announced a £150m support scheme for councils in each of the next two years in response to concerns over changes to funding calculations.

But none of the four local authorities in the Black Country will receive any of the transitional money - sparking fury among council bosses.

Tory-run Staffordshire County Council will receive additional funding of £5.56m over two years.

The announcement came after the conclusion of the consultation on the provisional Local Government Financial Settlement.

Critics say the new relief fund will overwhelmingly help Conservative areas, including the Prime Minister's own Oxfordshire council which is set to get £9m over two years.

Wolverhampton council's finance chief, Councillor Andrew Johnson, said the settlement 'reemphasised the unfairness' of how the grant was calculated.

"It is outrageous," he said. "Richer areas in the South East, mainly Tory councils I might add, have had less cuts yet some of them are getting extra money. It just adds insult to injury."

Wolverhampton council is set to receive £12.2m less in central government funding than it did in 2015/16. The authority is battling to save a minimum of £134m by 2019.

Sandwell Council's finance chief Councillor Steve Eling said the announcement meant the authority was facing a budget shortfall of £24m over the next year.

"This really sticks in the craw," he said. "Tory county councils and unitary authorities have complained about the level of cuts and it is predominantly them who have benefitted from this money.

"From a budget setting perspective it leaves us exactly where we expected to be." Sandwell Council has faced cuts totalling £156m since 2010.

Councillor Mike Bird, Tory leader of Walsall Council said he was 'not happy at all' with the outcome. "We are losing millions each year and will be forced to call a referendum over council tax next year because we can't continue the way we are going," he said.

"The constant cuts mean this council and others like us will have to stop doing the things people expect from us. The statutory services are protected but everything else is under pressure."

Walsall Council has to find £80m of cuts over the next three years.

Dudley Council leader Councillor Pete Lowe said the authority would remain saddled with the largest cuts to funding in its history.

"This is another example of decision making by a government to benefit its own party," he said. "All we ask for is a fair deal, but we're not getting that."

The five most deprived councils in the country – Middlesbrough, Knowsley, Hull, Liverpool and Manchester – will receive nothing under the grant.

The biggest beneficiary will be Surrey, which will get £24m, with £19m going to Hampshire, £16m to Hertfordshire, £14m to Essex, £12m to West Sussex, £11m to Kent and £9m to Buckinghamshire.