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Liverpool faces another £143 million cuts

And that's on top of the £141 million already made

Written by . Published on October 24th 2012.

Liverpool faces another £143 million cuts

LIVERPOOL faces a staggering shortfall in its budget of £143m over the coming few years, in a squeeze on English council spending that has been described as “the end of local government as we know it”. 

The Government’s smarmy pronouncements
of no increases in Council Tax levels is
seen as a poisoned chalice

But even that estimate could be on the low side, depending on a number of factors facing Mayor Joe Anderson, according to a Liverpool City Council report being discussed at a “special” budget meeting of his cabinet this Friday. 

The Labour-led city council has already been forced to find £141m in savings – more than a fifth of its controllable budget.

But the new round of expected cuts will mean that by 2016, Liverpool will have seen almost £300m snatched from its purse since the Cailition introduced its austerity programme in 2011. 

There’s already talk of axing the £800,000 school’s uniform budget and closing a number of libraries and leisure centres. 

A wheelie bin replacement charge may be brought in and 12 local organisations risk closure with a £267K cut in grants to community groups. 


Hundreds of thousands of pounds is likely to be cut from services affecting the elderly, deaf and blind, with home care charges likely to go up. A city-wide shopping service for the housebound faces the axe. 

But even these swingeing proposals, currently on the table, will hardly make a dent into the budget gap between 2013 and 2016. 

The leader of Labour-controlled Birmingham City Council, the UK’s biggest town hall authority, says services there will have to be decomissioned marking a sea change in its role. There, Sir Albert Bore said: "This is the end of local government as we have known it, adding: "This is as serious as I've known it in local government." 

Other factors being propelled at councils, like Liverpool, will make things even worse.  

The city council, from next year, will be responsible for working out how much Council Tax Benefit to grant to those on low income. The amount being given to the city council is being cut by 10 per cent. 

Mayor Joe is looking at various options. Should people paying little or no Council Tax have to pay something? Should it put up the Council Tax for everybody else to cover the cost? Or should it find savings elsewhere to pay for this shortfall? 

The Government is hailing a decision to allow local councils to keep the business rates they collect. Currently those rates go into a central pot and are redistributed. Friday's report will warn that this new system of funding carries more risk for the city council based on business rates volatility and reduced levels of national funding. 

The Government’s smarmy pronouncements of no increases in Council Tax levels is seen as a poisoned chalice. 

Although the Government gives extra money to fund a zero increase, funding this on a year-by-year basis means council tax levels are actually falling behind. 

Cameron And OsbourneNo laughing matterHow? If the Government pays the cost to shoulder a five percent rise in 2012, the following year it will offer another five percent to peg the tax in 2013. That means councils themselves having to meet the ongoing cost of not getting continual help to fund the 2012 reduction. 

Essentially spending accumulates each year. The Treasury is cutting the council tax grants given to local councils, while at the same time more or less preventing councils, by a form of moral blackmail, from increasing the tax. Councils putting up the council tax out of desperation will face ridicule from the government. 

No wonder the City Treasury is already resembling a ransacked cupboard.

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18 comments so far, continue the conversation, write a comment.

Richard FassamOctober 24th 2012.

Like to see mustaches on Ed Balls and Ed Mulliband as well- those two along with Gordon Brown got this country into this dire situation in the first place.

AnonymousOctober 24th 2012.

Capitalism got the country into the mess. Tories love it; they can spend five years destroying everything decent about our communities and sell the cute bits off to friends in the City who then reward them with nice directorships, having been (as now with the NHS) funding (ie bribing) the Tory Party meantime. The Labour Party does its best to tame the tiger by stroking its tail but always ends up with its head bitten off. Apart from obvious sh*ts like Blair who is laughing all the way to his JP Morgan Stanley bank.

Leon KayOctober 24th 2012.

If they charge for bin collection on top of the council tax then you will see bins being not collected because people will not be able to afford it.Rubbish will be tipped,disease will be rife and a pestilence of rats will run riot (did someone mention riot huh as if) and a plague will be amongst the houses of Liverpool.A pox on the houses of commons and lords a pox on the houses of buckingham and a pox on the shires of the great and the good.

2 Responses: Reply To This...
AnonymousOctober 24th 2012.

I think they just mean paying for a replacement bin if yours goes missing.

Barry WilkinsonNovember 1st 2012.

No sunshine..the man said..wheelie bin replacement..if you lose yours you will have to pay for it..unless you sneak out in the dead of night and nick your neighbours.

Richard FassamOctober 24th 2012.

Liverpool's financial mess falls from the hands of the Liberal-Democrats and the Labour parties these past 30 years- it is called mis-spending (£50m on the George Brown library/ £40m on Kensington Regeneration of which most of the money is unaccountable/ £10m on widening Old Hall Lane for car traffic when official LCC policy was to reduce car emissions/ the list is endless). I see 'Anonymous' has forgotten about the Labour Party appointments to its City friends on all the country Primary Care Trusts.
Try reading the Health Is Wealth Commission report (2008) and then you will know that a lot of Liverpool folk prefer television watching, beer, cigarettes and junk food over living a healthy life style or in getting involved politically in their community.
Poverty- real poverty has not been seen in Liverpool since the 1920's: read your public health journals.

1 Response: Reply To This...
AnonymousOctober 25th 2012.

I seem to remember your correspondent, Mr Nield, was one of the Health is Wealth Commissioners who compiled the 2008 report. It was a good eye-opening report but probably gathering dust. Dr Katy Gardner was another of the Commissioners.

Absinthe & TurksOctober 25th 2012.

Yes we watch beer and cigarettes because can't afford to buy them.

I really think you ought to get out more and mix with normal people on normal incomes. I think you'd be surprised.

AnonymousOctober 25th 2012.

As was seen at the angry anti-cuts demonstration outside Liverpool Town Hall last night, Mayor Anderson and the councillors will be blamed for cutting or scrapping services. It's all very well for Tony Mulhearn to say local councillors should refuse to cut services, the reality is if they refused to do so Osborne would send in one of his own henchmen to do the job. The mayor needs the judgement of Soloman.

Darth FormbyOctober 25th 2012.

Richard Fassam, you are quite simply stupid. Look it up.

Leon KayOctober 25th 2012.

I think the condems are trying either a)commit suicide at the polls or b)trying their damned hardest to commit genocide on the poor,elderly,infirm the NHS the DWP if you were just a head on a plate and you can pull a pulley with your teeth, abacht macht frei as IDS would say.I mean to say what have we become and were are we going with all these cuts and what are they doing with all the savings they make besides paying off interest rates to the IMF or giving to the third world and then having the bloody cheek to give it to the EU.I do not know why they don't put us all up (those on less than £10,000 pa) against the wall and shoot the lot of us that would solve a lot of problems for the very very very rich.Especially those that live in no mans land like Formby.

2 Responses: Reply To This...
AnonymousOctober 26th 2012.

Actuatly shooting the poor would cause condierable falls in demand for goods and services causing the economy to contract. At the same time it would cause a shortage of labour generating wage and then general inflation. I dont think that would be particulaly good for anyone. So do you have any other solution to offer? because unless you have an alternative to the condems plan you should probably just shut up.

and in case your wondering the words Arbit Macht Frei have no place in any reasonable discussion on anything and shame on you for using them.

Leon KayOctober 27th 2012.

Really the condems are the nazi parties of the UK

AnonymousOctober 28th 2012.

Godwin's Law has been activated! That didn't take long

AnonymousOctober 28th 2012.

Ancient Geek's Law Has been activated. That's the one where people scour the internet looking for a mention of "ahem..ahem" so they can appear superior. They can never look at the online TV listings for Channel 5

AnonymousOctober 29th 2012.

Godwin used to make great string synths...move along!

AnonymousOctober 29th 2012.

As John Lennon once said to his first wife.

1 Response: Reply To This...
Absinthe & TurksOctober 29th 2012.

She made great string?

I think you are spinning us a yarn.

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