Liverpool Council Faces "Horrific" Budget Options Amidst £73m Black Hole

Strategic Insights -

Liverpool Mayor Joanne Anderson has warned that Liverpool Council is facing "horrific" budget options, including significant cuts and a potential hike in council tax, as it attempts to plug a £73m black hole in its finances. The council has published its proposals to put itself on a stable financial footing, which include increasing fees and charges, reviewing libraries and fitness centres, and reducing spending on culture and welfare support schemes. Mayor Anderson has admitted that reductions will be made to the city's culture budget and the amount spent on welfare support schemes could also be chopped, with the council facing a shortfall of almost double the £37m it faced last year.

Key Takeaways:

  • The Liverpool Council is facing a £73m black hole in its finances, with the city having lost over £500m in funding since 2010.
  • Mayor Joanne Anderson has warned that efficiency measures will be needed, including reducing spending on culture and welfare support schemes, as the council is "running out of road".
  • The council has published its proposals to put itself on a stable financial footing, which include increasing fees and charges, reviewing libraries and fitness centres, and reducing spending on culture and welfare support schemes.
  • Mayor Anderson has admitted that taking away support from people in need is a "false economy" and creates pressure further down the line for other services.
  • The council is trying to protect vulnerable services, but is facing challenges due to in-year pressure around homelessness and a need to find alternative ways to accommodate people.

Statistics:

  • The city has lost over £500m in funding since 2010.
  • The council is facing a £73m black hole in its finances.
  • The city has lost £1,099 per household due to funding cuts.
  • The council has almost double the £37m it faced last year.
  • The hypothetical council tax rise of almost 3% last year was a difficult one to swallow for many.

Sources:

  • [DAVID HUMPHREYS, Local Democracy Reporter, news@liverpool.com, @HumphreysECHO]
  • [Liverpool Council Budget Proposals]