'Tough decisions' over £18m funding gap

The local authority said a consultation about next year's budget would begin in the coming weeks

A city council has warned of "tough decisions" on spending in the year ahead because of a multi-million funding gap.

Sunderland City Council is looking at a shortfall of £18m for 2025/26 after the use of earmarked reserves and a deficit of £48m over the following three financial years.

Labour Councillor Alison Smith, told a cabinet meeting on Thursday that "tough decisions" were needed to allow for a "balanced budget".

A rise in demand for services including adult social care were cited for putting a strain on finances.

The council is also anticipating "significant additional cost pressures" in relation to supported housing and temporary accommodation, the Local Democracy Reporting Service said.

The £18m figure is based on current estimates, with the council's financial position expected to become clearer after the government’s autumn statement and local government finance settlement.

Smith told the cabinet meeting: "The scale of the gap demonstrates the understanding of local authorities after over a decade of cuts by the previous government, coupled with the significant inflationary and other cost pressures we’re now facing."

The local authority said it was too early to say what next year’s increase in council tax would be, with a decision due in February.

A consultation with residents and businesses over next year’s budget is due to begin in the next few weeks, the council said.