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The Laz Word... on Liverpool going bust

Have the financial chickens come home to roost, asks Larry Neild

Written by . Published on October 1st 2013.

The Laz Word... on Liverpool going bust

WILL the lights …. the street lights that is … ever go out as it dawns on the city’s rulers we are skint, broke, penniless! 

Mayor Anderson says a quarter of
the council’s £550m budget goes
on things it doesn’t really need to provide

In the starkest hint yet about the dark days that lie ahead Major Joe Anderson has, like Old Mother Hubbard, pointed to the cupboard in the City Treasury, and it’s bare. 

Within two years there will only be enough cash in the coffers to fund essential tasks such as social services. 

At risk is every service the council has no legal obligation to run. This includes cultural events, regeneration work and leisure centres. 

Mayor Anderson says a quarter of the council’s £550m budget goes on things the council doesn’t really need to provide, even though in most cases they may be important to city life. 

The Mayor has summoned the leaders of the Liberal Democrats, Liberal Party and Greens, as well as the city’s five MPs, to a special summit of the Cabinet this Friday, October 4. Mayor Anderson wants them to hear first hand the plight facing Liverpool. 

Latest estimates show the council has to save £156m over the next three years. That is on top of the £173m already cut in the past three years - a total of £329m in six years. 

The latest financial position shows the city council will have to save £45m in 2014/15, £63m in 2015/16 and £48m in 2016/17. 

To rub salt into the wounds, this is an increase of £16m on previous estimates, due to changes in funding arrangements recently announced by the Government. 

Mayor Anderson said: “We have had to make significant cuts to services and to the number of people we employ.  But there is far worse to come and people need to understand that over the next few years we are going to be stopping doing things that we currently take for granted. If we do not, we will  go bankrupt. 

“Eighty pence in every pound of our income comes from Central Government, and because they have taken almost half of that funding away from us, we are going to have to make some very difficult  and tough choices.”  

Over the next few months, the Mayor will discuss, with residents and council partners, what they value the most, and what services they are prepared to see significantly reduced or withdrawn altogether. 

The Mayor warned: “Although it will be painful, we have no alternative.” 

Is it a case of some financial chickens coming home to roost in Liverpool? 


The city for many years has relied on one of the country’s highest levels of support grants. 

In fairness to the city, this reflected Liverpool’s high levels of social deprivation and poverty. 

Around 80pc of the budget came from Westminster, compared to hardly any Government money to some better off areas. 

It meant when the rug was finally pulled, the shockwaves were massive. Liverpool was destined to be the worst affected area. 

More than a decade ago some people were urging Liverpool to become far less reliant on Government money and handouts from London or Brussels. Mayor Anderson has landed the job of trying to sort out the mess.

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

LiverpolitanOctober 1st 2013.

"Handouts from Brussels"? It isn't charity! Is LivConf now the Daily Mail? We were fully entitled to E.U. aid. We are a deprived European region and getting more deprived thanks to "our" Government in London, just like we were in the 1980s. If only the anti-E.U. imbeciles could see that!

4 Responses: Reply To This...
AnonymousOctober 1st 2013.

Whingeing scouser mentality won't do anyone any good.

LiverpolitanOctober 2nd 2013.

I am not whingeing and neither am I a "scouser" that ugly invention of the popular media.

Ad ParitorOctober 2nd 2013.

This sham of a government have siphoned off EU money meant for Merseyside and sent it to NI and Scotland.

AnonymousOctober 2nd 2013.

liverpolitan rewrites history he omitted the ten years of neglect of liverpool, by new and old labour as they poured money into manchester

Arfur LoafOctober 1st 2013.

Joe's assertion that a quarter of the city's budget goes on things it doesn't need to provide, is spot on . It goes on half baked schemes that Joe has dreamt up.

AnonymousOctober 2nd 2013.

So let's spend money painting out all the bus lanes and chucking away the revenue they generate and make it easier for a cyclist to get knocked off their bike under the mayor's new Boris Bike scheme. Or they can go for a ride around Sefton Park and get hit by a bulldozer ploughing up the bit of it we are flogging to a property developer for pointless short term gain given the state of things. And most of all, let's hang onto our contract with Liverpool Direct, so my mate Dr Dave can continue to enjoy £600grand payouts on top of his LDL salary, you know Dave, he's the mate who is Chief Exec of LDL that I made CEO of the council when we were re-negotiating the £70 million a year LDL deal. While we are at it, let's give £25million to some housing developer with no track record and that nobody has ever heard of to turn the HMCR buildings on the waterfront into 1 bed flats and apartments....and I fancy buying Everton's training ground for £13million too so I can get autographs. Let's face it. I've only got one shot at this, they will never vote for me again. I'll get an honour and maybe a seat in the Lords like my old mucker Storey. There will be all sorts of little jobs I can do. Right now I am doing a big job in Liverpool.

2 Responses: Reply To This...
AnonymousOctober 2nd 2013.

Have we had the £135 million yet, that Joe said we'd get if we let him be the Mayor?

AnonymousOctober 3rd 2013.

I've a horrible feeling that this bankruptcy announcement is intended to distract everyone from all the screw-ups in your post, especially the McElhinney thing, which is getting worse by the day, with worse to come. Stupid idea - we all detest the Tories and their cuts, but he's supposed to be running the city. Apart from anything else, until you sort out some of this mess, the government can just turn around and say we (i.e. he) just waste money. One government minister already has (today's Daily Post). Stop grandstanding and sort it out.

Ad ParitorOctober 2nd 2013.

Bet Mack the Knife will be extracting more money before the coffers are fully emptied.

Arfur LoafOctober 2nd 2013.

Big Joe has just missed the boat, he could have weighed in all them tram lines that are gathering rust. As of yesterday it now has to go through the books prior to being paid into a bank account..........Then again there's always the Cayman Islands, they've got a branch or two.

AnonymousNovember 26th 2013.

Do we really need all those lights on Edge Lane and the Queens Drive flyover?

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