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Liverpool Echo
Liverpool Echo
National
Lisa Rand

Council 'well placed' to deal with government spending cuts

Knowsley is “well placed” to deal with anticipated spending cuts for local authorities but may have to make “difficult decisions” in future years.

This is the message from Knowsley's cabinet member for resources, Cllr Jayne Aston, delivering a financial update into the state of the borough’s finances at a cabinet meeting held last night (December 7.)

Cllr Aston also said that Knowsley’s challenges were “far less severe” than that faced by other local authorities, although the council is still facing challenges.

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According to the report, a deficit of £7.8m is forecast for 2023/4 which increases to £10m in the following year. The report details measures of £5.2m which could “partially mitigate” some of the forecasts, reducing the council’s potential deficit to £2.6m next year.

While Cllr Aston said there is “no need” for cuts at present, not least in the light of ongoing uncertainty about future local authority funding, the council will reassess this depending on the government’s settlement decision later this month.

She added that “government policy was adding to the financial burden faced by Knowsley residents” with the prospect of a 5% council tax rise next year to plug some of the gap.

Nevertheless, Cllr Aston concluded: “The council is well placed to deal with whatever the government throws at us.”

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