Plans to increase council tax in Liverpool by 10 per cent have been scrapped.
Mayor Joe Anderson had planned to hold a referendum to gauge whether local residents would agree to the price hike in order to preserve its basic services.
Liverpool City Council must make up a £90 million shortfall by 2019 due to funding cuts, which will lead to job losses and a diminished social care.
The prospect of a referendum vote on a price hike was put forward on the council’s online budget simulator when it was launched last month.
Enforcing the increase beyond the Government’s 4.99 per cent limit requires a public vote but negative feedback of the idea has prompted a council u-turn.
“When we launched the budget simulator I said there are only two places we can get the money to pay for services affected by the cuts,” said Mayor Anderson.
“More money from the Government or asking the people of Liverpool to pay more council tax.
“In the simulator I asked would you support an increase in council tax of an additional 6%, ring-fenced for Social Care.
“This was a genuine consultation, I get criticised if I ask and I get criticised if I don’t, but I wanted to know how people would respond.
“The response was clear with 57% saying no.
“I understand the reasons why the people who said no did, they themselves are struggling as are many others living in our city.
“I was also surprised and proud that so many, 43%, said yes! It’s a truly heart-warming reminder of how caring our city really is.
“I said I would listen to the feedback we got. I will therefore not be proposing to hold a referendum on any additional increase beyond the 4.99% limit set by Government.
“Work is still continuing on the full detail of the budget which we will make public in the New Year for more consultation, but your message so far is clear.
“I will try to continue to protect as much as we can from cuts especially to those who need our support most. We now have to prioritise the priorities.”
Instead, Mayor Anderson has proposed a ‘Liverpool Lottery’ to provide the funding for basic social care.
He added “”Liverpool people are amongst the most generous in the country.
“I believe will support the initiative to help us cope with the growing numbers of people dependent on us.”