Councillors in Knowsley look set to vote again on raising their allowances.
At a special meeting of Knowsley's full council, which is due to be held on Wednesday evening, there is just one item on the agenda - the council's financial strategy and cost of living update.
Contained within a report produced by the executive director of resources, are hints that cuts could be on the horizon in future years if government funding is not increased to reflect raised costs.
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The report notes that the council is currently in a "relatively stable financial position" given the economic pressures being brought to bear, a situation "far less severe" than other local authorities.
According to the report, Knowsley is facing a deficit of £2.6m next year and £4.8m the year after, the report calls on the government to ensure funding that is "which is distributed fairly and properly reflects prevailing rates of price and wage inflation."
With local authorities being required to balance their budgets, in the absence of additional funds, Knowsley may face tough decisions ahead.
The report states "cuts do not need to be considered at this time" due to uncertainty over next year's financial settlement for local authorities - which is set to be revealed by the government later this month.
However, it adds "such measures should be developed over a longer timeframe for potential implementation once the financial position for the coming years is clearer" meaning the council's situation may not be sustainable without some tough decisions ahead.
The report also discusses the cost of living crisis that is impacting on local residents and is followed by a Labour group resolution to vote against increasing councillor's allowances.
This would result in saving of £20k, according to the resolution, which should be set aside to be used on "additional cost of living support for care leavers."
The resolution states this is "in acknowledgement of this significant financial pressure and the responsibility of the Council as a Corporate Parent,"
Councillors from across the borough will meet to discuss the report and vote on the resolution on Wednesday, December 7 from 6pm at Huyton municipal buildings.
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