Stoke-on-Trent City Council facing £12m shortfall due to inflation
Stoke-on-Trent City CouncilA council is facing a funding shortfall this year of £12m due to soaring inflation and demand for its services.
Councillors in Stoke-on-Trent have been told goods and services are costing more and people are cutting back on activities like leisure centres.
The authority's leader, Abi Brown, has written to the Levelling Up Secretary Greg Clarke asking for an extra one-off grant this year.
The government said it would speak to councils with concerns about inflation.
Inflation in the UK jumped to 9.4% in the 12 months to June from 9.1% in May, the Office for National Statistics said on Wednesday.
A report for the city council said it was having a "significant adverse impact" on the authority's finances.
On top of the £12m gap this financial year, it warned the gap for 2023-24 would be about the same "and would rise in subsequent years".
Demand has increased for services such as elderly care while, with people cutting back on what they spend, payment for "discretionary services" such as gym memberships and swimming lessons has fallen.
The council also only budgeted for a 2% rise in pay but the report said current estimates show a minimum of 4% is expected to cover cost of living increases and the national living wage rise.
'Disproportionately impacts' city
A clampdown on expenditure including overtime is among measures the authority has taken and it said it will review what building projects it can delay.
In her letter to Greg Clarke, Ms Brown said inflation "disproportionately impacts places like Stoke-on-Trent".
She added if the government did not give them more support it could "risk undermining the Levelling Up agenda".
A spokesperson for the Department of Levelling Up, Housing and Communities said the government had given councils £3.7bn this year for key services.
"[We] stand ready to speak to any council that has concerns about the impact of inflation," they added.
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