Without changes to funding from the UK Government, Liverpool could face a funding gap of more than £100m in two years' time, the city’s Mayor has warned.
Last night, Liverpool Council published its budget proposals as it seeks to plug a £73m blackhole in its finances and set a balanced budget for the next financial year. As a result, among the series of options put forward to save and generate money are a potential hike in council tax, increasing fees and charges as well as a review of its libraries and leisure centres.
Reductions will be made to the city’s culture budget while the amount spent on welfare support schemes could also be reduced. In a statement following the budget options being published, Mayor Joanne Anderson said the Government needed to provide adequate funding for councils like Liverpool “to keep our communities running.”
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She said: “The current spending settlement for local government is simply untenable. If nothing changes, Liverpool is facing a funding gap of £84.3m in 2023/24 and £107m in 2024/25.
“We’re calling on the Government to provide adequate funding for councils and a move away from one-year finance settlements, so councils can continue to keep our communities running. Michael Gove previously promised two-year settlements when he was Secretary of State.
“We need this promise to be delivered.” Mayor Anderson said the funding was required to support the “desperate needs” in communities across the city and should it come through, it would be focused on the protection of welfare services.
She added: “The Conservatives have crashed the economy: residents of Liverpool must not pay the price.” As a result of the cost cutting measures at the Cunard Building, job losses may have to be made.
The Mayor said on previous occasions, compulsory redundancies had been something the administration had tried to avoid, but “difficult decisions have had to be made”. She said: “We really value each and every one of our colleagues; day in and day out they deliver vital services to our communities and provide support to our residents.
“During the pandemic, the council played a key role in supporting the local hospitality sector and co-ordinating support to the most vulnerable. This would not have been possible without our staff.
“We have put things in place to improve working culture in the council, such as the ‘speak out’ forum, the creation of our Culture Programme Board, as well as working closely with our trade union colleagues. All of these measures have the political oversight and involvement of our politicians as well.
“As a Labour group, we have always tried to avoid compulsory redundancies. This year’s budget is incredibly challenging and with the significant cuts we have received to our budget by central government, difficult decisions have had to be made due to having no other choice but to meet our legal obligation to set a balanced budget.
“Our priority will be to support anyone who wants to continue working for us by utilising the available vacancies and will support with upskilling our staff to enable them to take up any opportunities that are available. We will direct all our energies into supporting redeployment and will continue to look at every available option to ensure all our staff are given every opportunity to be matched into a suitable role and will be in continuous dialogue with all of our impacted colleagues to offer that support.”
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