NORTH-EAST councils have warned of “unprecedented and unavoidable” cash shortfalls set to total tens of millions of pounds as the cost of living crisis bites.

Just as households across the region are grappling with rising inflation and escalating energy bills, local authorities have warned that they too are faced with a deepening financial black hole that could force cuts to frontline public services.

Multiple councils have warned that they will have to make “difficult” decisions to try and balance the books, having already been forced to slash their budgets dramatically over the last decade.

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Inflation in the UK has risen above 10 per cent for the first time in 40 years, while the energy price cap is set to rise substantially over the coming months.

Northumberland County Council has confirmed it has already set aside £5.2m this year to deal with issues such as rising fuel and utility costs, but the Tory-run authority’s deputy leader Richard Wearmounth said that “we anticipate that further difficult financial decisions will need to be made going forward as costs continue to increase”.

He added: “We are working hard to ensure that these pressures impact as little as possible on our frontline services for residents and further details will be reported to cabinet in September.” 

A government spokesperson said: “We are working with councils to understand the impact inflation will have on their budgets and stand ready to speak to any council that has concerns.

“Councils in the North-East will have access to an additional £210 million this year, with a total spending power of over £2 billion.”