With just under a week to go until the Chancellor’s first budget, Council Leader Liam Robinson, explains why Liverpool City Council continues to manage our finances in a sound and prudent way.
You’d have to have been living under a rock for the last three months not to know that the mood music coming from HM Treasury has not been positive.
The inherited 14 years of austerity, the cost of living crisis and a £22 billion black hole in the nation’s finances means that difficult decision will need to be made.
But we are seeing positive steps from the Government.
A commitment to longer term financial settlements for councils; a pay rise for public sector workers; a commitment to planning reform to improve growth; funding for 300 new school-based nurseries and money for councils to build on brownfield sites is just the beginning of the change.
Whilst we wait for the budget and for the dedicated spending review in the Spring, in Liverpool we are prudently basing our financial planning assumptions to make sure we manage our spend and make sure we account for every pound.
In terms of spending, most of our money goes on things we are legally obliged to provide, such as adults and children’s social care to keep vulnerable people safe. These two departments alone account for well over half of our total net budget – and demand for them has been rising due to a growing older population and more families needing support.
We’re also putting a huge amount of emphasis on making sure we bring in all the money we’re owed. Successes this year include:
- Business Rates revenue up £7.2 million
- Council Tax revenue up £9.3 million
- Council Tax arrears collection up £1.7 million
In addition, a review of the single person Council Tax discount to make sure only eligible households are claiming has brought in an additional £750k, while property debt enforcement has recovered £318k.
This programme of work will only accelerate, as we put ourselves on a firmer financial footing for the long-term. This is vital if we are to protect and improve the services each and every resident of Liverpool cherishes.
