The Truth About Budget Spending & Performance

We’ve heard common misconceptions about Liverpool City Council’s budget and spending. This page addresses those myths with facts, showing you where the budget is spent and why decisions are made the way they are.

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You Asked, We’re Answering

Despite reduced government funding and rising costs, Liverpool City Council remains robust. We’re prioritizing the vulnerable, maintaining essential services, and keeping our reserves healthy.

Myth Buster!

We’ve been running a series of polls on our social media platforms asking you residents budget related questions, designed to demystify where we spend money. Let’s see if you got them right.

In 2025/26, around 60% of our gross funding was from central Government, 14% from Council Tax, 12% from Business Rates and the remainder from other sources including fees and charges.

In 2025/26, we budgeted £263 million for Adult Social Care and Health, £203 million for Children and Young People Services, £120 million for Neighbourhoods and Housing and £25 million for City Development. Most services within Adult Social Care and Health and Children and Young People Services are known as ‘statutory’, meaning we are legally obliged to provide care for those who are deemed eligible.

The £20 million of additional spending was due to us having to provide support to more people than forecast. The money we spent from reserves had to be replenished in this year’s budget, to make sure we have enough to cover unforeseen circumstances.

Liverpool has a lot of smaller properties (e.g. terraced houses). This means we raise less from Council Tax than other areas that have more larger properties.

The council has the fourth highest spending per head in England. This is because our city has a population with a higher level of needs, such as poor health, and larger numbers of people needing care support.

The average council tax in Liverpool is around £2,000, but we spend around £3,200 per household on services.

Every pound you pay matters

Liverpool City Council is committed to transparency about how we manage public money. We’re managing our finances responsibly, protecting vital services, and planning for the future.

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Colourful budget myth busting with pounds currency

FAQs

Why can’t you just use your reserves to avoid cuts?

Reserves are legally protected for genuine emergencies and unexpected costs, we can’t dip into them whenever we want.

Why do adult social care and children’s services cost so much?

These are statutory duties – we must provide them by law. Demand has increased dramatically due to an aging population and more complex health needs. We can’t turn people away when they need care or protection.

Will services get better or will there be more cuts?

We’re investing in improving service delivery through our Neighbourhood Model and other initiatives. However, we can’t predict future government funding or economic conditions. What we can promise is continued careful financial management to protect essential services and support our communities as effectively as possible.

How much say do residents have in budget decisions?

We consult residents on major decisions and our Council Plan reflects community priorities. However, much of our budget is locked into statutory services we must provide by law. Where we have flexibility, we listen to what matters most to you and make decisions that balance needs across all communities.

The Truth About Budget Spending & Performance

You Asked, We’re Answering

Myth Buster!

Every pound you pay matters

FAQs

Want to learn more about our spending? Visit liverpool.gov.uk/budget

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