Liverpool consider 10% council tax rise

A referendum would have to be held if the council goes ahead with plans to raise council tax by 10%

A city's council tax could rise by up to 10% in 2018 but residents would need to agree.

Liverpool City Council says government funding cuts mean it will not be able to fund adult social care or children's services without raising more money.

The authority can not raise council tax by more than 3.99% without holding a local referendum.

The city's Mayor Joe Anderson said "the only solution" is to "cut services or ask for more money".

Mayor Anderson told a full council meeting on Wednesday night that it was not a question he wanted to ask.

He said: "We can ask for more money from the government, but they are not listening, or I can ask for more money from the people from the city which will help protect those services.

"We'd be saying for instance, would they support an additional 5% - so making it just under 9% council tax increase. Then we'd also be asking them would they go even further - 10%."

Consultation beginning

Between 2010 and 2017, central government funding will have been cut by £340m and a further £90m saving is required by 2020, meaning the council will have slashed its budget by about 67%, a spokesperson said.

Mayor Anderson added that any referendum would take place in May alongside the Metro Mayor election and would cost around £300,000.

In 2016, council tax in Liverpool rose by 3.99%, half of which was ring-fenced for social services, while the two previous years saw a 1.99% rise.

And this is not the largest increase the council has ever proposed - in 1994 it raised council tax by 19.5%.

A budget consultation will be launched on 17 November asking people if they would accept the proposed increase.