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Liverpool faces £90M budget crunch, warns Mayor

The Mayor of Liverpool has warned that the city faces a £90 million budget shortfall in the next three years.

Joe Anderson made the claim amid a debate about plans to stage a referendum on increasing council tax in order to preserve basic services.

Government funding cuts threaten to leave Liverpool unable to fund initiatives such as adult social care and children’s services without additional finances.

Liverpool City Council plan to show their current funding dilemma through an online ‘budget simulator’ in efforts to convince people to agree to a council tax levy.

“Many people have said to me about the referendum, that you have very little chance of winning because you’re asking people for more money,” Mayor Anderson told the Liverpool Echo.

“My answer to that is every year the voice for us to protect services is getting stronger, but it’s now getting to the stage where we have very little choice.

“Adult social care and children’s care in particular are the biggest areas of spend for us.

“Even if we cut 10% from adult social care and children’s care – which would be disastrous for the people who rely on them – even then we would still have to cut all the other services by 50% and would still be about £20m short of what we need.

“So if people genuinely want me to protect services I can only do that in two ways – one is if the Government gives me more money or if the city of Liverpool gives me more money.

“I’m saying I can’t make this decision on my own – this is a genuine attempt to listen to people and say I’m prepared to do that, or not do that.

“At least I can say I’ve listened to people and make a choice whether to go to a referendum or not.”