Liverpool mayor defends 5% council tax rise

Mayor Joanne Anderson said it had "always been a priority for us to protect the most vulnerable"

Liverpool's mayor has defended a 5% council tax rise, saying there was no option but to propose the increase.

Mayor Joanne Anderson said the budget gap was now £49m rather than the £73m originally anticipated.

This means planned cuts to some welfare schemes, which had raised concerns, would not now go ahead.

Ms Anderson said "those funding pots are discretionary" but it had "always been a priority for us to protect the most vulnerable".

Richard Kemp, leader of the opposition Liberal Democrats, blamed the Labour-run council for bringing financial problems on itself.

He said: "The fact that the government gave us £19m more than we originally anticipated is not, in itself, a cause for rejoicing."

Increased revenue from higher taxes plus that larger contribution from central government has, however, meant some proposed cuts have been halted.

Housing campaigners had raised concerns that grants like the council's Citizens Support Scheme and discretionary housing payments could be slashed under budget proposals released by the authority last autumn, leaving vulnerable people unable to pay their rent and at risk of homelessness.

Mayor Anderson said the council's specialist benefits maximisation team would be retained.

She said that while the council would cut its contributions to the two support schemes, it would use central government funding pots to cover emergency housing payments for people in most need in the year ahead.

'Value for money'

The budget contains a wide range of savings from every council department as well as plans to generate more income through things like extending the hours when drivers must pay for on-street car parking.

Mayor Anderson said "we had a huge gap and all those funding pots are discretionary. It's always been a priority for us to protect the most vulnerable".

She said council tax support schemes remained in place but "we've still got a near £50m gap to fill".

"This is what the Tories do - they take away funding and they 'allow' us to raise money by taxing residents".

She said she understood that people were struggling with the cost of living but said in Liverpool council tax offered good value for money when it came to culture in particular.

"A penny in every pound is paid on culture, and for that you get so much," the mayor said.

"An exciting city to live in and lots of culture - not just Eurovision".

She added she understood residents' frustrations with tackling perennial problems like potholes and litter.

Mr Kemp said: "What we all need to consider is - what would the situation have been if the council had been run properly? The answer is, 'far better off than we are now'."

Mr Kemp added: "In this budget we have £902,000 for the Lime Street/Strand overspend; £5m or more having to be put back into reserves for the electricity bill debacle; £2m for the five commissioners and improvement programme; and at least £1.2m for extra spending on interim staff, consultants and advisers."

Government-appointed commissioners overseeing Liverpool Council said a "significant challenge" remained in achieving its savings targets for the year ahead.

They said the budget report "contains an honest and reasonable estimation of expenditure requirements and credible proposals to ensure that income is sufficient to cover those spending needs".

"Nevertheless, there is inevitable uncertainty of the demands for services from the council and a significant challenge in implementing all the savings proposals," they added.

The 5% rise will appear on bills from April if the council's budget is approved on 1 March.

Why not follow BBC North West on Facebook, Twitter and Instagram? You can also send story ideas to [e-mail]