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Liverpool Echo
Liverpool Echo
National
David Humphreys

Commissioners react to final Liverpool Council budget plans

Government commissioners overseeing Liverpool Council said a “significant challenge” remains in achieving its savings targets for the year ahead.

The city council has confirmed it will need to fill a budget gap of £49m, rather than the eye-watering £73m first feared after a better-than-expected receipt of government funding just before Christmas. Despite this, council tax is expected to go up by almost 5% for the next financial year.

Some less palatable options put forward will not go ahead however, with plans to reduce or remove the benefits maximisation team; reduction of the council tax support scheme; reducing the number of One Stop Shops and removal of council tax relief for foster carers, being scrapped. Now, budget papers made public by Liverpool Council have detailed the assessment of the financial situation by government-appointed commissioners.

READ MORE: Woman fighting for life after fall on Mathew Street say police

In a section in the detailed budget report, the officers paid tribute to the efforts of those who had worked on the proposals but offered a word of warning. They said: “The budget report represents the culmination of months of work by council officers and the elected members.

“It contains an honest and reasonable estimation of expenditure requirements and credible proposals to ensure that income is sufficient to cover those spending needs. Nevertheless, there is inevitable uncertainty of the demands for services from the Council and a significant challenge in implementing all the savings proposals.

“It is right therefore, that the report has prioritised and increased general reserves that the S151 Officer assesses as adequate to mitigate the risks to the budget.” The report said how “significant work” had to be done to address concerns over lack of progress raised by Mike Cunningham and his team as the council entered into the budget process late “and in the knowledge that significant savings were required.”

This was an issue raised by Theresa Grant, interim chief executive, in February. She told a meeting of councillors she would usually start the budget setting process in March but on this occasion had to do so in November.

She said: "I'd love to think it's an organisation where it's business as usual but I feel obliged to point out it's not." In November, the commissioners added a fifth member to their ranks, with former Birmingham Council boss Stephen Hughes appointed to a finance specific role.

In December, Deputy Mayor Cllr Frazer Lake, said the authority had “pushed back” against Mr Hughes’ appointment.

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