Wirral council faces £20m savings challenge to avoid cash crisis

Nov 3 2009 Liverpool Daily Post

Wirral 320

WIRRAL Council will have to make savings of more than £20m a year over the next three years to avert a massive budget deficit.

Council leader Steve Foulkes said that, although the current financial year is on target to be balanced, future years look tough for the borough.

A report to the ruling cabinet, which meets on Thursday, says the authority faces shortfalls in its budget of £76.5m between 2011 and 2014.

Even with council tax increases at around 4% – increases over 5% are likely to be capped by the Government – this leaves shortfalls of £23.1m, £20m and £21m, over this period.

Even this coming year, 2010-11, the council faces a shortfall of £13.6m and, even with a 5.2% council tax increase next year, has to find “efficiency savings” of £8.4m.

Cllr Foulkes said: “Others have been trying to not face it by saying we do not need to make difficult decisions.

“This year is the last year in the current three-year cycle and we have coped well, but it’s the duty of any politician with backbone to deal with the predictions that there will be severe public spending cuts whichever party wins the next General Election.

“We expect local government will have to take some of the share of that.