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Liverpool Echo
Liverpool Echo
National
Olivia Williams

Merseyside council claims government budget solution 'not viable' as it sets to raise council tax

One cash-strapped Merseyside council claims the government's solution to balance the budget for the next financial year "is not viable" as it prepares to raise Council Tax again.

Sefton Council needs to save £9.1m to set a balanced budget for 2020/21 and at least a further £22.83m for the following two years.

On the council's documents it suggests a Council Tax increase of 3.99% in 2020/21 - although this has been factored in as an example, with the real planned rise set to be revealed in the coming weeks.

These further savings come after Sefton Council has been required to meet an overall budget shortfall of £233m since 2010 - equating to a loss of £722 per household in the borough.

The struggling local authority have said for the past six years it has worked towards setting two, three-year budget plans to ensure that the council’s financial statutory obligations are met.

However, the government’s latest settlement is for one year only, which the council says makes it extremely difficult to forecast the funding the local authority is likely to receive in 2021/22 and 2022/23.

Councillor Ian Maher, Labour leader at Sefton Council said the process of trying to balance the budget each year is "relentless."

Cllr Maher also said there is increasing pressure on both adult and children’s social care along with schools in Sefton and the government "continues to expect the Council to increase Council Tax to ensure our most vulnerable are protected."

He said: “Since 2010 we have had to make savings of more than £233m – that equates to a staggering £722 per household in the borough.

“The process of trying to set a balanced budget seems to be relentless and we now have to make further tough choices for the next financial year and our budget plan will have to reflect this.

Southport Town Hall (Andrew Teebay)

“While we have an excellent track record of effectively managing our finances and delivering financial sustainability, this is becoming increasingly difficult and what the Government is proposing is simply not a viable solution.

“There are still huge pressures on both adult and children’s social care along with our schools but our calls for help in these areas seem to go ignored.

"These pressures are only going to get worse and the government continues to expect the Council to increase Council Tax to ensure our most vulnerable are protected.

“However, we will strive to ensure that essential services that safeguard the most vulnerable residents across the whole borough are protected and prioritised in addition to ensuring that financial sustainability is maintained.

“This is no easy feat and when I look around the borough, I’m still amazed and impressed with the quantity and quality of services that we still continue to offer.

“The budget plan report will hopefully enable us to set a balanced budget for 2020/21 and allow us to plan for the next two years to give the Council sufficient time to identify specific proposals to deliver financial sustainability until 2023.

“We will continue to work with our elected members and partners during this uncertain period and carry on doing the best for our valued communities."

It is not just Sefton Council which is also feeling the pressure of austerity.

On Friday, January 31, Liverpool Mayor Joe Anderson said he will refuse to implement any more government cuts.

The Local Government Association forecast a new government funding formula will impose a further £27m cut to Liverpool City Council.

The Liverpool Mayor said: "I will refuse to make any further cuts to our budget because we are now at the stage where doing so will mean closing down vital services that people rely on.

"We have worked hard under enormous pressure to keep our libraries and children's centres open because they affect the life chances of people in Liverpool, these new cuts would mean losing those services and I'm just not going to do it."

He added: "This means we are entering a crisis point in the city's history and it will put us on a collision course with the government but we aren't prepared to play their games anymore.

"I will say this now - I will not close any libraries or children's centres in this city, I will not set a budget that cuts any of these vital services."

A report outlining a budget plan for 2020/21 has just been released that will go to Cabinet on Thursday, February 13 with a final decision made along with setting any council tax increases at the budget meeting on Thursday, February 27.

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