City bosses vow 'we will not stop' despite huge funding blackhole

Liverpool Council leaders said “we will not stop” amid a potential £29m financial blackhole ahead. City officials have warned at the half way point of the financial year, a significant overspend is forecast for the authority in a number of key areas.

A mid-year financial report set out how “significant budget pressures” had materialised with huge sums having to be paid out to meet demand on children’s and adult’s social services as well as homelessness. Cllr Ruth Bennett, deputy leader and cabinet member for finance and resources, told cabinet colleagues how these challenges “were not unique to Liverpool Council” and said officials would seek to mitigate the financial difficulties that lay ahead.

Earlier this week, Cllr Liam Robinson, leader of the council, said Liverpool was not in a situation faced by some other authorities, including neighbouring Wirral, where it needed to warn of potential bankruptcy in future years. Cllr Bennett outlined how she and colleagues would “face the challenge head on” to deliver a balanced budget next year.

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She said: “Directorates working together with finance to mitigate pressures, some that are out of our control, so that we can continue to deliver the services that residents cherish.” The cabinet member added how reviews of the single person council tax discount had generated an additional £750,000 a year, while tax revenues were 17% above the 2023/24 takings.

A medium term report said the authority is taking a “more tactical approach” to setting next year’s budget but had welcomed additional investment from the new Labour government to date. Despite this, Cllr Bennett said a degree of uncertainty remained in planning assumptions for the next financial year.

She added: “The reality facing councils is that as hard as we work to mitigate, that demand is outstripping the additional funds.” The Belle Vale ward member said: “While we wait for the detail of our government’s proposals, we will not stop.

“We will look to identify the future savings options and cost reductions opportunities. There are themed programmes across the organisation targeting organisational efficiency, maximising income and the application of technology and digital solutions.”

On Monday, Cllr Robinson said budget options are still being discussed, but said areas like charges for skip hire, car parking and fixed penalty notices were the sorts of options being discussed. He told the cabinet: “It doesn’t mean there won’t be any difficult decisions in the future, because there will be.”