A Labour MP has asked for an urgent meeting with the UK Government over Wirral Council’s deficit problems.
Mick Whitley MP, who represents Birkenhead, said: “The situation facing the council is deeply concerning. This is a crisis made in Westminster, not Wirral.
“Since 2010, annual funding from central government for our borough has fallen from £266.5m to just £40m. The Government must now accept responsibility for the financial challenges confronting local authorities nationwide and make additional financial support available to set the council on a sustainable footing."
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Mr Whitley said he has called an urgent meeting with the Levelling Up Secretary Simon Clark, adding “the alternative is further cuts to frontline services, which my constituents simply cannot afford.”
Two other Wirral MPs, Margaret Greenwood and Dame Angela Eagle, have also publicly supported council leader Janette Williamson’s call for more government funding last week.
The Conservatives and the Greens, Wirral’s two biggest opposition parties, however criticised past handling of council money and said reserves could be used to fund services.
Wirral Council could face bankruptcy after its budget gap more than tripled in three months to £49m. A report said if the council does not produce a balanced budget by the end of the year, it would lead to drastic cuts in services.
A Wirral Council report said: “An approach of salami-slicing all budgets is not considered sustainable and more radical approaches will need to be considered.”
Services that could be the first to be cut are domestic violence and early intervention services, according to Cllr Williamson.
The council will be required to produce a budget by March 11, 2023 with a large-scale consultation about service cuts carried out as early as possible.
This intends to “remind residents how the council’s budget is made up and how it is spent” and the difference between statutory services and other services which the Council chooses to provide.
The council had been praised for its reaction to a critical report last year though a budget deficit of £14m remained.
The report said: “The council had regained a positive position of sound financial sustainability with robust practices in place that evidenced a culture of good financial management" but the deficit has now grown to a projected £49m due to inflation, rising energy prices, and reduced income according to a Council report.
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