MPs slam council amid huge shortfall in lifelines for businesses
Sandwell Council has faced heavy criticism after a huge shortfall emerged in businesses which have not received financial lifelines.
The Government has set aside £12.3billion for companies - which are struggling financially amid the coronavirus outbreak - to be given grants through local authorities.
But Sandwell Council was ranked the second worst in England for the speed at which grants have been processed.
Figures released on Wednesday showed just 11 per cent, or 626, of Sandwell businesses had received cash, out of a total of 5,887, which have qualified for help. This meant 5,261 businesses were still left waiting for cash.
This figure, relating to small and medium businesses, was released by the Government.
But Sandwell Council argued this number was out of date and, in fact, was the correct number from last Monday, two days earlier.
Instead, the council's own figures showed that 1,035 businesses had received grants by last Wednesday.
A council spokesman said the council had been required to provide its figures to the Government on Monday and that there had been a rapid rise in the number of grants processed in Sandwell between Monday and Wednesday.
The latest council figures showed 1,537 business had been helped by Monday.
But Sandwell's low number - identified in the Government figures last Wednesday - was branded "totally unacceptable" by Sandwell MPs Shaun Bailey and Nicola Richards.
They have written a joint-letter sent to Sandwell Council demanding an explanation as to why so many businesses have been left waiting for cash.
In the joint-letter, which was written on Wednesday, they said: "We are writing to you with concern that so far only around 11 per cent of businesses in Sandwell have received the Small Business Grant Fund administered by Sandwell Council.
"These figures mean that Sandwell has the second lowest payment rate of any local authority in England, and the worst rate for payment in the whole of the West Midlands.
"Whilst we appreciate that these are unprecedented times; we are sure you will agree that for our constituents that this is totally unacceptable."
The letter was also addressed to the Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma MP and demanded a "swift resolution to the issue".
But council leader Yvonne Davies has defended the local authority's response to businesses, revealing that only 3,000 companies have contacted the council for help. She said more than 30 per cent of businesses which have contacted Sandwell Council have been paid.
"Sandwell Council has gone through every possible way of finding all of our potential businesses," she told the Express & Star. "We have come up with a potential list of just under 6,000.
"We wrote to every single business in the beginning but we have had just over 3,000 of businesses respond. Of these, more than 30 per cent have been paid."
She added: "I am not a magician. I can't make people respond. It seems unfair to say we are not paying people who haven't responded."
Councillor Wasim Ali, cabinet member for resources, revealed there has been problems in getting up-to-date contact information for businesses, which has made processing grants harder.
He added: "We are drawing extra resources from the council [to help process grants].
"We have a lot of small businesses in Sandwell and we have a backlog in getting updated data on them.
"In reality, we are processing a lot of forms. But we need businesses to contact us."
Government figures, which were released on Monday, showed levels for other Black Country councils. The data showed: Dudley had supported 1,955 businesses out of 3,952; Walsall helped 2,407 businesses out of 4,350; and Wolverhampton had helped 2,213 businesses out of 4,461.
