Wirral’s Green Party has accused Council leader Janette Williamson of “deliberately painting a worst-case scenario” over a growing gap in the budget and the Conservatives accused her of playing "gesture politics."
Wirral’s political parties have been reacting to the news the council’s budget deficit has nearly quadrupled in the last year.
Councillor Tom Anderson, who leads Wirral's 24 Conservative councillors, said: “Given the well-known inflationary pressures all councils are facing up and down the country, I have no doubt the Government will address this when the settlement figures are announced in December.
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"As usual, this is gesture politics from Cllr Williamson. She had the opportunity to make a difference to our residents lives in August by utilising money from a £6 million public health reserve which has been sitting in the council coffers since 2014. I find it astonishing the Labour leader won’t use public health money to address the cost of living crisis which, let us not forget, is the biggest threat to public health here in Wirral today.”
A motion is expected later on September 30 for a vote on a million-pound bailout request to the government. The vote would take place at the next full council meeting on October 10.
The Greens, who criticised the council’s handling of finances, said reserves could be freed up to avoid cuts in services while the Liberal Democrats supported Labour's view that rising inflation was the reason behind the growing gap in the budget.
Councillor Pat Cleary, leader of the Greens, said: “The projected £49m deficit is a worst case scenario based on a series of negative assumptions. Some savings which do not impact on front line services have already been identified. Furthermore, the council has significant reserves and contingencies which could and should be deployed given the emergency conditions inflicted by the cost-of-living crisis and the reckless actions of the new prime minister.
“Clearly, councils up and down the country are facing severe financial pressures. The government needs to act urgently to reverse its heartless economic policies and ensure councils have sufficient resources to deal with cost-of-living pressures.
“Cllr Williamson is deliberately painting a worst case scenario to deflect attention away from the fact that she has held direct responsibility for Wirral Council’s finances since 2017 and, with Conservative support, presided over cuts to much-loved council services in the most recent council budget."
Cllr Phil Gilchrist, the leader of the Liberal Democrats in the council, agreed with Labour and said: “Inflation, fuel prices and interest rates are way beyond the levels we all budgeted for. The conditions are even tougher now.”
Cllr Gilchrist criticised the UK government’s controversial mini budget calling it “shambolic handling” and added “its consequences have added to our woes and the problems caused by President Putin.”
“That is not our fault and Wirral should not suffer for policies that backfire. We will do all we can to head off cuts that damage the fabric of society.”
The gap in Wirral Council’s budget has increased from £14m to £49m with Council leader Janette Williamson saying rising inflation was to blame.
Adult social care, staff pay, and utilities were the biggest contributors to the deficit with adult social care alone contributing nearly £13m.
On Twitter, council leader Janette Williamson accused the UK government of crashing the economy and said: “Public services will suffer, but local councils cannot go under. We are the lifeline of the community. Don't abandon us Liz Truss.”
Asked if the council could declare bankruptcy over the deficit, Cllr Williamson said this was not going to happen: “People didn’t vote us in to abdicate responsibility."
However huge cuts would need to be made to services Labour argues. Cllr Williamson said without a bailout, the Council could only provide legally required services such as children’s services, bin collections, and education.
The Greens think reserves could be used to fund services. Cllr Cleary said: “In March, Wirral Council had £115m in reserves. The current budget also includes contingencies of £3m. It would be disastrous in such circumstances if permanent reductions in vital local services were forced through due to the heartless incompetence of a Tory government whose policies are clearly unsustainable.
“If Labour want to try and impose further cuts in much loved frontline services, that’s their political choice - and completely unnecessary.”
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