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Mayor challenges PM on council budget figures

Mayor Joe Anderson has written to Prime Minister David Cameron to correct his claim that the city’s settlement for 2013-14 is the same in cash terms as 2010-11.

The assertion was made during a visit to the city for the International Business Festival. The PM was quoting erroneous figures which the DCLG (Department for Communities and Local Government) has already withdrawn and replaced because they were incorrect.

In his letter, the Mayor states: “The comparable cash reduction in Government grants is 27.8% or £131m which is not unexpected as your Comprehensive Spending Review announcement in 2010/11 stated that there would be an overall reduction of 28% in funding over 4 years. Liverpool has been hit harder as you will have seen in the Guardian article recently, as it has actually happened in 3 years not 4.”

He has also supplied a table which shows that the cumulative real terms reduction from 2010/11-2013/14 is 32.9 percent, or £155.9 million.

Mayor Anderson adds: “It is regrettable that you were briefed with incorrect figures and I hope that you have the opportunity to consider the implications of such a damaging settlement in one of the most disadvantaged cities in the country. I also hope that you will consider my call for an independent review of the funding formula used to distribute the funding to Local Authorities.”

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