Regent Funeral Service (RFS), owned by Gateshead Council lost £1.14M since 2018 due to competition and inflation.
Council documents show the losses have grown, with RFS losing £1.14 million. The council says it is still growing the business.
Liabilities increased from 2023, going from £941,953 to £1.14 million. The report says competition increased, and RFS, located in Saltwell, absorbed price increases. Inflation restricted the price increases they could make.
In 2018, the council started RFS to provide affordable funerals, with basic packages beginning at £1,500. RFS was the first council-owned funeral firm.
Current options include direct cremation, costing £1,395. A simple funeral costs £2,800, while The Regent Funeral costs £3,500.
RFS provides military funerals for around £3,350. This includes a hearse and a coffin with a Union Jack. SunLife says simple funerals cost more. The average cost in the North East is £4,285.
The council says RFS expands each year, building its reputation. They say they are family-oriented, supporting residents when needed and ensuring loved ones get a special send off.
The council committee will meet on March 3 to discuss the report and note its contents.