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Unemployment soars in Wolverhampton during pandemic

Unemployment in Wolverhampton has shot up by six per cent during the Covid crisis, council finance chiefs have revealed.

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Unemployment in Wolverhampton shot up six per cent

At a full council meeting on Wednesday, Wolverhampton Council bosses said the estimated cost of dealing with the pandemic in the coming year will be £15 million.

Members from both the ruling Labour group and Conservative opposition backed a motion praising the efforts of the city in dealing with coronavirus.

But deputy leader Louise Miles, who is also cabinet member for resources, said it was important the Government honoured its pledge to replenish funds splashed out by the authority to tackle it.

She said: “So far the estimated immediate cost to the council of the Covid-19 pandemic has been £22.4 million.

“We’ve received from the Government, and we do welcome and acknowledge this funding, £19.4 million.

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“However that still leaves us with an immediate cost pressure of around £3 million and also that doesn’t take into account the more indirect and future costs to the city caused by the pandemic.

“We continue to manage our finances in a measured and careful way. We have increased our general reserves by £3 million and we have also created a special recovery reserve of another £3 million.

“Some of the challenges faced by the city are the impact on the ability of people to pay council tax, the ability of businesses to pay business rates, cost to revenue by the fall in car parking and people attending leisure facilities.

“As a council we have already made a pledge that we will support our residents during these difficult times, particularly through council tax support and other measures we can take.

“At present we estimate in the next financial year, the cost to the council of the pandemic and related issues will be in excess of £15 million.

“We do call upon the Government to make good their pledge to continue to fund the costs of the Covid-19 pandemic and we would also ask they allow us to use our specific reserves for which they are intended, which include our very important regeneration projects which will also bring jobs to the city.

“The most recent figures to August show there has been an increase in unemployment in the city from 4.7 per cent to 10.6 per cent.”

Council leader Ian Brookfield added: “We anticipate unemployment will be a problem and as the furlough scheme disappears, there will be a further problem.

Opposition Conservative group leader Wendy Thompson said: “The situation prior to Covid found Wolverhampton in a poor place with its city centre and also vast unemployment which was in the top three nationally.

“However this document does show some hope from the people of Wolverhampton – it is saying we want better.”