Final set of budget options announced

LIVERPOOL City Council has announced the final tranche of budget options for 2013 to 2014.  The Council needs to save £32 million in 2013 to 2014 on top of the £141 million of cuts over the last 2 years.  Overall the Council is having to save £290 million from 2011 ot 2017, which includes £46 million in 2014/15, £35 million in 2015/16 and £36m in 2016/17.

The options considered and supported by the Budget Working Group comprising the Mayor, the Liberal Democrats and the Liberal Party include:-

►  A review of libraries and the introduction of a 'hub and spoke' model from 2014/15. This follows the opening of the brand new Central Library which the Council has committed to running at a cost of almost £2 million per year (a PFI deal was signed in 2009).

►  Consultation will be held over having a smaller network of buildings and some services may be delivered by other organisations from 2014/15.

►  The service will also place more of an emphasis on digital access, with members available to download books online. This option will save £1 million per year (from 2014/15).

►  Reviewing the operations at Kirkby and Allerton municipal golf courses which are both running at a loss, saving up to £300,000.

►  Review of the Integrated Youth and Play Service with the possibility of transferring services to the voluntary and community sector, saving potentially £1.2 million over three years.

►  Withdrawal of part-funding for sheltered housing wardens with Registered Social Landlords asked to fund the shortfall, which could save £1 million.

►  Introduction of charges for community alarms at sheltered housing, saving £449,000 per year.

►  Reviewing homeless hostels at Geneva Road and Aigburth Drive in order to save £150,000 per year.

►  Selling four nurseries which are heavily subsidised by the Council to save £800,000 per year.

►  Ceasing the Council's role in delivering Truancy Watch from 2014/15, to save £132,000.

The decisions in this tranche total £5.7 million, with some of the most difficult changes only taking effect from 2014/15 to give time for consultation; to ensure they are implemented in the fairest possible way, and to give partners/providers sufficient time to adjust.

Around 400 staff will be affected by service reviews or proposed transfer to external organisations. The Council will do all it can to facilitate redeployment, and discretionary compensation will be offered.

The Council has yet to decide between increasing Council tax or accepting the Government's offer of a grant to freeze Council tax again. The Council tax freeze grant is £1.6m but is not available beyond next financial year. The Council has the potential to raise Council tax by 1.8% which would generate around £2m income into its base budget in future years.

Mayor Joe Anderson said:- "This has been a horrendous process in which we have had to make some extremely difficult and hard choices in order to balance the books for the next financial year, but also to prepare for the following year. In previous years we have been able to make many of the savings by reducing back office functions, and halving the senior management team. We are now at the stage where those options have gone and we are having to prioritise one front line service over another.  It is really, really tough to be contemplating reducing or withdrawing good services which are a lifeline for people.  Some of the cuts we are announcing won't be implemented for another year to give us time to speak to people about what we are proposing, and give us time to make sure we are doing all we can to minimize the impact.  I completely understand that some people will be extremely unhappy at what is being proposed. They have every right to be angry, because I am as well. The simple fact is that we get 80% of our funding from the government, and the savage cut in our grant means we are the hardest hit City in the country."

Deputy Mayor and Cabinet member for Finance, Councillor Paul Brant, said:- "Our government grant is being cut by more than 50% over the lifetime of this parliament. There is simply no way that we can possibly make this level of savings without impacting on frontline services. We are doing our very best to mitigate the impact and do it as fairly and equitably as possible, but it is simply wrong that people in the poorest City in the country should have to shoulder cuts amounting to £252 per household when the national average is £60."

Decisions already taken in previous budget tranches include the withdrawal of school uniform grants and the removal of a subsidy for a shopping service run by Age Concern.

Consultation will now start on the options and they will be considered by the Mayoral Select Committee on:- Wednesday, 12 February 2013 and the Cabinet on:- Friday, 22 February 2013.  More information about the budget can be found at:- liverpool.gov.uk/budget and people can get in touch by email or writing to:- Budget, Chief Executive's Office, Municipal Buildings, Dale Street, Liverpool, L2 2DH.   The Council is due to set its budget on Wednesday, 6 March 2013.