Commissioners overseeing Liverpool Council have cast doubt over the strength of the savings options put forward to plug the city’s huge financial shortfall.
In December, government appointed officers monitoring the performance of the city council delivered an update at the halfway stage of their three year intervention. Speaking to the ECHO, Mike Cunningham and his team said that after months of hard work on all sides, a glimmer of hope about the future of the city council was beginning to shine through.
Amid a £73m financial blackhole to fill which could lead to service and job cuts, lead commissioner Cunningham said for the first time, the team were “optimistic” about the city’s direction of travel. Amid the appointment of the commissioners following the Best Value inspection conducted by Max Caller in 2021, Liverpool Council developed a strategic improvement plan to deliver the best possible services and improved outcomes for the people of the city.
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A month prior to the commissioners’ assessment, Mayor Joanne Anderson warned efficiencies would have to be made as the city council attempts to plug the blackhole in its finances. Among the options it faces are a potential hike in council tax, increasing fees and charges as well as a review of its libraries and fitness centres.
Mayor Anderson said reductions will be made to the city’s culture budget while the amount spent on welfare support schemes could also be chopped. A new report to the local authority’s joint meeting of the mayoral and performance, and finance and resources select committees has given an update on how the government appointed officials view progress on solving the financial crisis.
It said: “The council has a legal obligation to set a budget where its spending plans are met by its estimated income, while having adequate reserves and contingencies to deal with risks, uncertainties and unforeseen events. By identifying significant savings for public consultation and drawing together consultation responses from members through the scrutiny committees, this report is an important step towards meeting its financial obligations.
“However, there is still considerable uncertainty about the scale of the challenge, the robustness of the savings, and the adequacy of the response that will need to be addressed between now and when the final decisions are made in March.” The remarks were part of a wider analysis of how the council intends to make the vital choices in weeks time.
While overall scrutiny of the council’s budget sits within the remit of the mayoral and performance committee, every select group on the local authority has been given the opportunity to feedback on proposals since the options were confirmed in November. Next month’s meeting is one of the final scrutiny events before the budget goes before the council’s cabinet and then a full session of the authority for final sign off.
It is not yet known how the local government settlement will impact the budget shortfall Liverpool faces or indeed how much council tax could rise in the next financial year. Government has made it easier for local authorities to increase the amount to 5% without a referendum.
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