Liverpool City Council is calling on the Government to follow its example of investing in infrastructure to stimulate growth.
It follows the comprehensive spending review, in which another £11.5 billion has been cut from public spending in 2015-16, including a 10 percent cut for local government.
Deputy Mayor, Councillor Paul Brant, said: “You cannot cut your way to growth. In Liverpool we are innovating and investing in schemes that will deliver jobs and economic benefit, whether it’s using our borrowing power to kickstart developments, or to generate new income streams as we have done by purchasing Everton FC’s training ground.
“We are building 5,000 homes and 12 new schools and making sure where possible the contracts go to local firms employing local people. The Government should look at how we are innovating to keep our economy motoring and improve life for our citizens.
“On the other side of the coin, it is too early to know the exact impact of the announcement on our day to day spending on services and we need to work our way through the detail. Looking at the bald figures, we estimate it could mean the loss of up to an additional £13 million in 2015/16, increasing the budget gap to about £35 million.
“It will mean more tough and difficult choices over services for the most vulnerable in the coming months and years. Overall, we will have lost more than half of our government spending in the space of five years – over £300 million.
“However, despite the immense financial challenges, there are still great opportunities for our city. Major schemes such as Liverpool Waters, Edge Lane Retail Park and our plans to regenerate Anfield will deliver real and tangible opportunities which we are confident will make a big major difference to the city’s fortunes.”