Liverpool residents are set to be charged a maximum increase in Council Tax as the local authority tries to balance its books.
The city council has now published its final budget proposals, which will need to be signed off by the cabinet and the full council. A better-than-expected government settlement means that some of the more painful cuts that were being proposed have been taken off the table.
Last year it had been proposed that the council's benefits maximisation team could be removed along with a planned reduction in the council tax support scheme and a reduction in the number of One Stop Shops in the city. These cuts will now not happen as the council finds itself in a slightly better financial position previously thought.
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However, savings of £50m still need to be found and council leaders say a maximum Council Tax increase is essential. The proposed 4.99% increase is the maximum councils can charge on residents without going to a public vote. The rise is made up of 3% for core spending and a specific 1.99% rise for adult social care.
It is calculated that the 4.99% will provide Liverpool Council with an additional £10.6m over the course of the 2023/24 financial year compared to if there was no rise at all.
Around 60% of properties in Liverpool are classed as Band A properties for Council Tax. This is the lowest band in terms of Council Tax charges. An increase of 4.99% on a Band A property will equate to an additional £61.72 per year - or £1.19 per week - on people's bills. For a Band B property, it would equate to £72.01 per year or £1.38 per week. You can find out what band your property is in here.
These calculations are before other additional charges have been added for the Merseyside Police and Crime Commissioner, Merseyside Fire and Rescue Authority and the Liverpool City Region Combined Authority.
Speaking about the budget plans, Mayor of Liverpool Joanne Anderson said: “We have been clear from the start of the budget setting process that if we were able to, we would protect welfare-related services, and I am pleased that we have been able to do so. At a time when people who are already struggling are facing rising costs, we were determined to do all we could to protect our proud record of supporting those who need our help.
“Notwithstanding this, there are still some tough options set to be taken forward, which is why we are pushing ahead with a radical transformation programme to refocus our services and make sure every pound of our spending is making a difference.” Theresa Grant, Liverpool Council interim chief executive, added: “We have been through a very intense period scrutinising the options to make sure that the final budget proposals are robust and will deliver the savings we need to make.
“This is the start of a three-year journey to putting the organisation on a sustainable financial footing for the medium and long term, with services that deliver best value and are based around the needs of residents, in the heart of the community.”
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