St Helens Council leaders warn of 'unprecedented cuts' without more government support

The bleak warning has come in a letter sent to the government today (Friday).

The letter, which has been signed by all of the group leaders on St Helens Council and the borough’s two Labour MPs, calls for “urgent clarity and funding certainty” from the government.

READ > Coronavirus funding 'black hole' could be 'catastrophic' for St Helens

As previously reported, the council is estimating that by September it will face extra costs and losses of £37 million.

This week the council learnt it will receive just short of £5 million from the second round of emergency coronavirus funding, on top of the £6.4 million it has already received.

This will leave the council facing a shortfall of more than £25 million – meaning massive cuts are inevitable if the government does not offer further support.

The letter sent to Robert Jenrick, Secretary of State for Housing, Communities and Local Government, says: “In order to address underfunding of £25 million, the council would need to make unprecedented and unacceptable cuts to these essential services which are so important to our communities.

“Before COVID-19 hit, our council budget for 2020-21 already contained £5 million in savings and £5 million use of one-off emergency reserves in order to balance the budget.

“Another £25 million on top of existing pressures would make a difficult situation potentially catastrophic.”

St Helens Council leader David Baines has warned of 'potentially catastrophic' consequences

In a rare show of unity, the leaders of every political group on St Helens Council signed the letter, including Conservative group leader Allan Jones.

Cllr David Baines, leader of St Helens Council, thanked his rivals for their show of support.

He said: “I’m pleased that all parties represented on St Helens Council have joined me in signing this letter, and I thank councillors Allan Jones, David O’Keefe, Teresa Sims and James Tasker for their support.

“We’re asking for clarity from the government, and a commitment to help cover the significant extra costs and losses St Helens is suffering in the fight against COVID-19.

“A budget gap of £25 million would be catastrophic for the essential services we provide.

“Our key workers, the services they provide, and the residents who rely on them, deserve nothing less than the full support of government.”

Conor McGinn, Labour MP for St Helens North and shadow minister for security, said: “This is a strong and unified cross-party message from St Helens borough recognises the huge challenge our communities face now and in the future.

“We desperately need additional support from government to rebuild our local economy and provide vital public services.

“In working together, I hope that politicians both locally and nationally can ensure that people in St Helens get their fair share.”

Conor McGinn, Labour MP for St Helens North and shadow minister for security

The allocations announced this week is on top of the £1.6 billion already provided to councils to deal with the pandemic.

Previously, the allocations were not based on population and reflected the pressures individual areas were facing.

Wednesday’s announcement, made by Ministry of Housing, Communities and Local Government, shows the government has allocated £16.6 million less to the city region than was promised.

Some areas like Knowsley have been hardest hit, with a 39 per cent shortfall from its first allocation.

Liverpool has also been hit hard too, with Mayor Joe Anderson warning on Thursday the authority was on the verge of bankruptcy.

St Helens has received 22 per cent less than the £6.4 million it received from the first lot of funding.

Marie Rimmer, MP for St Helens South and Whiston, said the announcement that the promised funding was going to be reduced was a “real kick in the teeth.”

“Local councils are expected to lead the charge to tackle coronavirus, and in return they were promised that the government would support them,” the former leader of St Helens Council said.

“Councils have had to put up with a full decade of austerity, and now when they are facing the biggest challenge of a generation, they are being told the required money will not be made available.

“Quite simply, this is just not acceptable. We are in a national emergency, the government should be providing whatever it takes to get our country through this.”

Here is the letter in full: