MORE jobs and services at Redcar and Cleveland Borough Council could be lost as hopes of recovering £10.7million of debt from former steelmakers SSI fade.

Speaking exactly one year on from the closure of the works, leader of the council, Sue Jeffrey said that the authority has not abandoned all hope of getting at least some of the owed business rates money from receivers.

But financial managers are making calculations on the assumption that no money will be received.

Councillor Christopher Massey, cabinet member for resources, said last night the council "does not expect any payment".

The council will not have to deal with the loss of the full £10.7million of expected annual income because the Government automatically pays top-up grants if expected business rates receipts falls below a certain level.

But the authority is expected to receive £2.9million less a year than previously hoped for.

Cllr Jeffrey said the authority had already shed about 1,000 jobs and the overall decline in income from 2010 to 2020 from Government settlement money would have been £90million even before the closure of SSI.

She said: "The SSI loss comes on top of the austerity cuts.

"We're currently in a process calling Shaping Our Future about the best ways to deliver services. We try to be measured and thoughtful but there's no doubt people will notice a difference in their council services.

"We will have to look about how we can deliver services to our older people and young people...We will try very hard to minimise job losses."

Cllr Massey added: "The SSI debt of £10.7million from 2015/16 has not been paid with the company in liquidation and its affairs are in the hands of the official receiver.

"The council does not expect to receive any payment from SSI as part of the winding up of the company.

“Moreover, Government calculations still assume that the council will collect SSI’s £10.7million business rate payment every year up to the end of the decade.

"The council has factored this significant annual loss into its medium term financial strategy where it needs to make £26.3million of revenue budget savings over the next three years.”

The Government's assumed business rates for all councils will be reevaluated in 2020 when the calculations which affect Government grants to councils will be re-examined.

That could lead to an increase in income from central Government to Redcar and Cleveland at that time.