Knowsley residents face another Council Tax hike as the borough attempts to have its first year without cuts for a decade.
The Labour-run council has been one of Britain’s hardest hit by the austerity years, losing half of its government grant and cutting spending by £100 million since 2010.
But while its latest budget proposal includes no cuts, Knowsley Council still intends to increase Council Tax for the fifth year in a row.
The proposed 3.99% hike - the maximum allowed without a referendum - would see the majority of Knowsley residents pay an extra £39.50 a year on top of other tax increases from the police, fire brigade and MetroMayor Steve Rotheram.
Precise spending details are yet to be revealed, but a report prepared for a cabinet meeting next Wednesday (February 12) states the tax rise would put the council’s budget in surplus by £4 million.
This surplus would come even after an £8.5 million increase in spending on council services and, the report states, would allow the council to carry out some “one-off investments”.
Opposition Green group leader Cllr Kai Taylor welcomed the surplus, saying it would help to “replenish” reserves that had been depleted by years of austerity, but called for more detail on spending proposals.
He told the ECHO: “They should be clear about exactly what that money is being spent on, but we do understand that the council has been hit by brutal cuts for the last ten years.
“We do need to take proactive action to replenish the financial situation.”
Council fears more cuts could be on the way
However, despite the optimism of the budget proposals for the coming year, the council has sounded a warning note for the future.
A recent report by the Local Government Association suggested changes to how councils are funded would see Knowsley lose £11 million, or £20% of its government grant, as resources are transferred from deprived boroughs to more affluent shire counties.
Knowsley Council said such a change would be “catastrophic”, with the borough being the worst affected.
The government has claimed the figures are only “an early illustration” and not a concrete proposal.
The council also fears further cuts could be on the way due to reports central government departments were being asked to reduce spending by 5% to help pay for Conservative manifesto pledges.
Local authority documents said: “As local government did not feature to any great extent in the 2019 Conservative Party Manifesto, this is a further cause for concern for future funding.”
