Risk of £23m council cuts for Wolverhampton if Whitehall cash dries up
More than £23 million worth of cuts could be made in Wolverhampton next year unless the Government provides further financial support, council chiefs have warned.
Wolverhampton Council bosses warned coronavirus had “significantly distorted” the authority’s finances – leading to a forecasted funding black hole of £23.2m.
It comes as leaders in the city have called on the Government to fully fund the costs incurred by councils and commit to a solution by early next month. '
Councillor Louise Miles, cabinet member for resources, said the authority had been given £26.1m by Whitehall – which will be spent by next year on services.
She said: “We manage our finances well, setting balanced budgets and keeping a prudent sum in reserves even during the past decade of austerity.
"Were it not for the unforeseen impact of Covid, we would be on course to deliver another balanced budget with minimal impact on services next spring.
"However, the pandemic will cost us and all councils vast sums of money, not just in terms of the immediate response such as feeding the vulnerable, taking homeless people off the streets and getting PPE to our social care workers, but also lost income with services shut and fewer people being able pay their bills due to unemployment.
“The impact will be felt for years to come as we manage the here and now, but also what is sure to be the long economic recovery to all this.
'Challenging'
"As a council, we have already pledged to support the vulnerable in our community, including children and young people.”
“We are forecasting a really challenging time with cuts of more than £23m to the local services our residents depend on next year without additional Government money. The emergency £26.1m already provided to us by Government will already have been spent by then.”
Councillor Ian Brookfield, leader of Wolverhampton Council, said councils required “every penny” of Government money promised to them.
“Funding provided by Government so far to tackle the pandemic is welcome, however we forecast considerably more will be required to deal with the ongoing impact of the crisis which will be felt for years to come,” he said.
A report on the financial position will be discussed at a cabinet next Wednesday.
