Finding almost a quarter of Liverpool Council’s budget shortfall from children’s services will be a “big ask” for the city according to a senior councillor.
Last month, the local authority published a raft of measures it was considering to plug a £73m gap in its books ahead of the new financial year. Among them are reductions in its welfare services, culture budget and potential job losses.
Proposals have been put forward by each directorate across the council in a bid to make savings and during a meeting of the local authority’s education and skills select committee, Steve Reddy, director of children’s services, set out how the city aims to make almost £19m in savings from the department. The council currently spends £176.6m a year on children’s and young people’s services.
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Budget documents have outlined how the city’s children’s services have experienced “significant pressures” in line with national trends, such as specific increases in demand for early help and social care services. A transformation plan is in place, according to the assessment, to “reduce demand for social care services and keep families together safely.”
Mr Reddy said the biggest chunk of savings will be £12.6m coming from children's social care services, with underspends already baked in and a reduction of budget growth now expected not to be needed. A further £2.5m will be found each year for the next three years through a reduction in private or independent residential children’s home places.
The director said the council hopes to open four of its own children’s homes in 2023 which would reduce further financial pressure and deliver savings by bringing down the burden on use of external providers. Assessing the budget, city centre ward member Cllr Nick Small said this year's budget is "particularly tough" in terms of the size of reduction required.
He said the council needs to take a step back and look at what it has managed to retain, rather than cut, compared to other cities. Committee chair, Cllr Barbara Murray said having to find almost £19m next year is a "big ask" from children's services and education.
Almost £1m is to be clawed back for 2023/24 in a one off reduction in spending around children’s centres and vacancy management. The committee’s analysis is to be taken forward to a joint meeting of the finance and resources and mayoral and performance select committees in February as the finalisation of the budget setting process nears.
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