A FINANCE chief has insisted a cash-strapped Teesside council “isn’t in the bad boys club” after facing cuts and a devastating cyber attack.

Redcar and Cleveland Council received “exceptional financial support” from the Government earlier this year to help deal with the damage done by a cyber strike in 2020. 

One of the conditions for getting the £3.6m grant was that the authority would be inspected in an “external assurance review” alongside eight other councils. 

The list included Slough Council which unveiled emergency curbs on its spending this summer after uncovering a £56m deficit. 

But Cllr Glyn Nightingale, cabinet member for resources, told Tuesday’s cabinet meeting he was confident the probe would give the council a “clean bill of health” given the money related to the cyber attack. 

He added: “This is part of the process for the exceptional fund the government introduced. 

“It is designed for councils perceived to be in financial difficulties, for example Slough, and other councils which are in that situation as well.

“We are not in that situation.

“Our position was we needed extra support because of the criminal cyber attack but in order to get the money, we were lumped into that group.

“The big difference is we’ve been given a cash grant to cover the cyber attack problems, whereas these other councils have only been allowed to do borrowing.

“That is significantly different and we should make it clear we’re not in the bad boy club like some of these other councils.”

The authority has now topped up its usable reserves after they fell £11m lower than the nearest council in the region last year. 

Latest estimates calculate the cyber attack has cost the council £8.7m.

Council leader Cllr Mary Lanigan told colleagues she would be making her thoughts on the government’s approach to the cyber attack funding very clear as part of the inspection process.

“This was a criminal act done against this council and I feel we’ve sometimes been led along a path by central government,” she added.

“I will be making that absolutely clear to them. It was totally and absolutely out of our control.

“We couldn’t do anything about that whatsoever and the promises made prior to everyone coming under this new umbrella didn’t apply until the very last few weeks – which was annoying to say the least.”

Earlier in the meeting, Labour councillor Chris Massey reported back from the resources scrutiny committee – pointing to the cuts seen in local government in the past decade combined with difficulties brought by covid and the cyber attack.

Cllr Lanigan said they didn’t know from one to the next what funding they were getting from the Government. 

She added: “That’s making it extremely difficult – with the pandemic we’ve got and the billions of pounds being spent, I look with dread at what central government is going to do next. 

“I’m quite sure they’re going to pull some of this funding back and is that going to impact on us?

“I’m quite sure it will – but we’re managing the best we can.”

Cllr Nightingale told the chamber it had been a “difficult year” but the current budget was balanced and reserve levels were “back on track” at the authority.

The Liberal Democrat added: “No-one can breathe a sigh of relief and expect we’re out of the woods in any way – there are too many constraints and uncertainties.

“Firstly, the autumn grant settlement, the progress of covid, the local and national economic situation, and a whole load of unknown unknowns lurking.

“But the partnership is determined to ensure the council receives recognition for its efforts and its future financial sustainability.”

 

Keep up to date with all the latest news on our website, or follow us on Facebook, Twitter and Instagram.

You can also follow our dedicated Teesside Facebook page for all the latest in the area by clicking here.

For all the top news updates from right across the region straight to your inbox, sign up to our newsletter here.

Have you got a story for us? Contact our newsdesk on newsdesk@nne.co.uk or contact 01325 505054