St Helens Tory councillors have 'several questions' around £25m funding gap

Last week all of the group leaders on the council and the borough’s two Labour MPs wrote to the government to seek “urgent clarity” after seeing its emergency funding slashed.

The letter warned that the authority will have to make “unprecedented and unacceptable cuts” if more cash to deal with the coronavirus fallout is not forthcoming.

READ > Two more people die at St Helens and Knowsley NHS Trust

Prior to this, town hall chiefs had produced an internal report setting out the dire financial situation.

This was shared with all of the council’s group leaders in order to gain their support.

“I signed this letter to support the people of St Helens who may have had to face council funding cuts,” said Cllr Allan Jones, leader of the St Helens Conservative group.

“The letter came from a report from the strategic director of corporate services.

“The contents of this report have given rise to several questions from the Conservative group. Now is not the time for these questions.

“The time for that will be when a reply has been received to that letter or when the virus has been defeated.

“Make no mistake, these questions will be asked of the council. Now is not the time for anyone to gain the moral high ground.

“It is time for us all to work together for the residents of St Helens and beyond.”

St Helens Town Hall

Council chiefs estimate that the local authority will face extra costs and losses of £37 million by September as a result of the pandemic.

Last week the council learnt that St Helens would receive 22 per cent less than the £6.4 million it received from the government’s first lot of emergency coronavirus funding.

This is due to the government changing the methodology of how it allocates the money to per capita – a switch from the previous round which was based on need.

The internal report shared with group leaders estimates there will be a £25 million funding gap unless the government provides more financial support in the coming months.

Cllr David Baines, leader of St Helens Council, said this would be “potentially catastrophic”.

The change in methodology has not just impacted St Helens.

Earlier today, Liverpool City Region Metro Mayor Steve Rotheram posted a video on social media, calling the situation a “national disgrace”.

READ > Council leaders warn of 'unprecedented cuts' without more government support

Knowsley has been the hardest hit, with a 39 per cent shortfall from its first allocation.

Liverpool has also seen a massive £14 million reduction, which prompted Mayor Joe Anderson to warn that it was on the verge of bankruptcy.

The government said the new funding is part of “comprehensive package of support” and said it will continue to work with councils on the “best approach” to the next financial year.