Liverpool accepts ‘tear-eyed’ savings to budget

Liverpool City Council has agreed to save nearly £ 19million in savings next year and currently have a spending freeze in place to reduce a current planned budget overrun of almost £ 9million.

Jane Corbett (Lab), deputy mayor and cabinet member for finance and resources, said there would “inevitably be a lot of trouble to go” in the budget plans, which were passed by cabinet this morning and will now be the subject of consultations for six weeks.

The proposals amount to £ 18.7million in savings through reduced spending and additional revenue generation.

This includes £ 11.7million for adult social care – 6.3% of the current net budget for this service – and will include revising high cost care packages to save £ 1.9million.

The council also plans to save £ 1.6million (1% of the current net budget) in child welfare and education, £ 2.4million (4.2%) in its department of communities, £ 2.2million (2.2%) in regeneration and motorways, and £ 0.8million (5.3%) in funding and resources.

Liverpool will also increase the housing tax and its precept of social protection for adults by the maximum amount allowed without holding a referendum (1.99% and 2% respectively) in 2022-2023.

Cllr Corbett said there were “no easy decisions”.

“These budget proposals protect the children’s centers … the recreation centers, our council-run libraries and our anti-poverty grants, but there will inevitably be a lot of pain to go through due to the triple whammy of l ‘austerity, Covid-19 and in-poverty at work, ”she said.

The firm also approved a new five-year corporate asset management strategy and premises management investment program that includes £ 861,000 for repairs to buildings, such as a local leisure center for it. can reopen.

Meanwhile, the full forecast for the year 2021-22 sees an end-of-year budget overrun of £ 8.9million for the general fund. The board said “management is taking action, including a spending freeze, to minimize any year-end budget overruns.”

Liverpool currently have £ 20million in general reserves which can be used to fund any budget overruns in 2021-2022. These reserves are expected to be replenished in 2022-2023 and would form part of the budgeting process for that year.

A spokesperson told LGC that the board is “confident that the planned budget overrun will be minimized by the end of the fiscal year.”

The council’s budget is £ 465million a year lower than it was in 2010, and council tax only increases 40% of the total needed, with the rest coming from government grants and commercial tariffs.

Liverpool Mayor Joanne Anderson said: “We need to save an exorbitant amount of money in order to legally balance our budget,” adding: “We will not hesitate to find lasting solutions to long-term problems and problems. double whammy of austerity and Covid-19.


Source link

Comments are closed.