Metro Mayor tax to go up for first time in six years in budget 'challenge'

Steve Rotheram, Mayor of Liverpool City Region
-Credit:Colin Lane/Liverpool Echo


The amount we pay to fund the Liverpool City Region Metro Mayor is to increase for the first time in six years owing to a “challenge on budgets.” Alongside local authorities across Merseyside, Steve Rotheram and the Liverpool City Region Combined Authority (LCRCA) are currently in the middle of their budget setting process for the next financial year.

Having established a Mayoral precept in 2018/19, residents across the six boroughs have paid a frozen rate of £19 a year per Band D property. The precept is part of the overall council tax paid by Liverpool City Region residents and used to fund City Region-wide services for which the Metro Mayor is responsible.

Now ahead of the LCRCA agreeing its annual budget next week, it has confirmed the amount in our council tax bills that goes towards the Metro Mayor will increase. A rise of £5 a year has been proposed per band D home, owing to what the authority described as “a challenging financial environment.”

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A report to go before leaders next week set out the reasoning behind the precept going up. It said: “The Mayor has endeavoured to minimise the costs associated with these functions and has established a structure that includes only functions directly associated with delivering the maximum benefit for the City Region.

“The Mayor has sought to provide resources to further priorities in digital connectivity, tidal energy, bus franchising and other areas associated with the devolution agreement which will be of significant and long-term benefit to the city region.” The fee has been frozen for the past six years by what the LCRCA describes as “focussing on value for money in its commissioning and procurement activities, as well as business transformation and modernisation.”

However, due to “continued pressure and challenge on budgets” the authority said it was now essential to secure increased funding to “support the delivery of priorities within a challenging financial environment.”

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Under the proposals to be considered when leaders meet at Mann Island next week, the annual increase ranges from £3.33 for a Band A property to £10.00 for a Band H property. For the majority of properties within the City Region, the increase will equate to less than 1p a day.

Cllr Carl Cashman, leader of the Liverpool Liberal Democrats, criticised the decision to increase the precept. He said: "The extra charge is equal to a 25% tax increase at a time when people across the Liverpool City Region are struggling to pay their bills.

"People might be more sympathetic to why the Mayor needs to raise this tax if they weren’t receiving such poor services. Merseyrail trains are constantly delayed or cancelled and money has been wasted on stupid schemes such as the half a million pounds given to a food delivery company that never happened.

"This 25% increase could well be to pay for the Mayor’s investigation into himself and why trains aren’t running on time." Within the budget proposals is more than £46m to fund the city region’s concessionary travel scheme which offers travel passes to residents at the age of 60 as well as extending the £2 single bus fare cap until September.

A Combined Authority spokesperson said: "The Combined Authority is proposing a revenue budget that sets a course for the Liverpool City Region to be the best place to grow up, grow a family, and grow a business. It is a budget to grow the economy and provide training for tens of thousands of people, while investing in public transport that's both affordable and that works for local people.

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"This includes an extension to the £2 bus ticket price cap, bringing the city region’s bus network back into public control and funding one of the country's most generous concessionary travel schemes that offers travel passes to residents at the age of 60 – a full seven years ahead of the national scheme. All efforts have been made to reduce costs while maximising benefits to the city region and its 1.6million residents, however, the budget reflects a challenging economic backdrop. It supports households, businesses and local authorities while addressing the Combined Authority’s own financial pressures - particularly within transport.

"As a result, for the first time in seven years, we have reluctantly taken the decision to increase the Mayoral precept to cover the rising costs of delivering our priorities. The increase means the majority of Liverpool City Region households will pay around 1p extra per day."