Liverpool schools are facing 'damaging uncertainty' over their finances after a catalogue of costly errors at the city council.
Earlier this year, it was revealed how a litany of mistakes at the council had added as much as £16 million on to the city's energy bill. Council leaders were not informed that the electricity provider it was dealing with had actually withdrawn from the commercial market, leading to the local authority - and other city institutions - were automatically placed onto a standard, far more expensive contract.
The crisis has had far reaching consequences both within the council and beyond. The revelations of the mistakes were followed by the dramatic resignation of deputy chief executive and finance director Mel Creighton, while deputy mayor Jane Corbett had her finance portfolio removed.
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But away from the council itself and the costly mistakes that have impacted badly around the city. The same energy deal provides electricity for the city's fire service and Liverpool's maintained schools.
In June, the chair of governors at Northcote Primary School in Walton suggested the school was facing the prospect of job cuts after its energy costs had soared to 500% - partly because of the mistakes made at the council. He said the pressures were 'unsustainable.'
At the time that the energy contract mistakes were first revealed, Cllr Corbett suggested in an interview that the council would cover the costs of the impact on schools. But in a subsequent meeting she was less committed to that pledge.
Ahead of a crunch city council meeting next month, opposition Liberal Democrat councillors Andrew Makinson and Carole Storey have submitted a motion which calls for an 'immediate guarantee' the the council will step in to meet the additional costs faced by schools over the electricity mess.
The motion states: "This council expresses grave concern at the impact of the failure to renew the city’s energy service contract. Council notes the promise made on Radio Merseyside in May by the Deputy Mayor, and then Cabinet Member for Finance, that Liverpool schools will not be left to pay more as a result of this failure. A promise that has since been rescinded.
"This has left schools with the damaging uncertainty over their finances for the rest of this financial year, with many now forced to plan for staffing cuts that will severely impact the quality of education provided to the children of Liverpool. Notwithstanding the outcome of the forthcoming Mazars report, Council believes that it is right that Liverpool schools should not have to pay the price for Liverpool City Council’s incompetence.
"Council therefore calls upon the Mayor and Cabinet to provide an immediate guarantee to all Liverpool schools affected by this electricity contract that Liverpool City Council will use its reserves to cover the additional price of electricity that schools will pay this financial year."
The city council has previously insisted it "has been regularly communicating with all of the city's schools affected by the electricity contract issue and has apologised for the impact on budgets".
A spokesperson added: "There is a commitment to assess the impact of the additional costs as a matter of urgency once all quarterly bills are in next month.The situation will also continue to be monitored under the new tariff."
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