Liverpool Council Tax Could Rise by 5% to Tackle Budget Issues

Liverpool may raise council tax by 5%. This would help with budget issues. Social care and homelessness put pressure on the council. The council will vote on this proposal next month.

The tax increase could generate £11 million. Social care already uses a third of the city’s funds. Many properties in Liverpool are in tax bands A or B. This affects how much money they bring in.

Ruth Bennett said the city faces big financial problems. Other cities face similar issues too. Unlike Wirral, Liverpool is not close to bankruptcy. They don’t need a Section 114 notice.

Councils need approval for tax hikes above a limit. The limit was 5% for 2024/25. Most of this can fund any service. Two percent is just for adult social care.

Bennett said they need the tax increase. The government gave them extra funds. This includes recovery grants and social care grants. They face much demand on their budget.

She stated adult and children’s social care need much funding. Homelessness causes stress too. A 4.99% rise gives them £11 million. They invest in services residents want.

Liverpool seeks this maximum increase for three years. Michael Gove allowed the increase in 2023. Other cities got approval to go beyond 5%. They asked for more government help.

Bennett said Liverpool Council will meet the budget challenge. They plan to reduce reliance on hotels. They develop strategies for homelessness. They review children’s social care contracts.

Liverpool wants to improve its finances. They review discount schemes and empty property premiums. They improved collections. They brought in £25 million more than in 2023/24. Core spending power increased by 10%.

Bennett wants multi-year settlements from the government. She said the government is listening to them now. This is a big change from the last 14 years. The council actively engages in this process.

Wirral Council asked for emergency funds recently. This was to avoid bankruptcy. The situation cost the leader his job. He will not rejoin in May.

Liverpool is not requesting special funds, according to Bennett. She stated they maximize income to deliver services. They benchmark fees and charges.

The finance committee will consider the budget plans. Then, the cabinet will endorse them in late February. A final decision is set for early March.