Council tax in Liverpool is set to rise by 6% as council leaders claim that they are facing a “financial cliff edge”.
Mayor Joe Anderson will face a full council tonight and explain that he has no choice but to raise the council tax paid by residents to the maximum possible amount – 5.99%.
The announcement will follow the news of a “crisis” in Children’s social care in the city that will leave them overspending £6M this year. The amount will then double the year after.
If the increase is agreed during a March budget meeting it will mean that the average resident in Liverpool will see a £105 per year increase.
The council tax rise is said to include a 2.99% rise to cover the cost of council services whilst the additional 3% will be ring-fenced for the Children’s social care deficit.
The move is somewhat of a U-turn for Mayor Joe Anderson who described an announcement that increases of 5.99% to council tax without a referendum as “unfair” and “perverse”.
Joe Anderson has come under heavy criticism for borrowing money to finance deals such as Everton’s new Bramley Moore Dock Stadium. The deal will see the council lend Everton £280 Million. The council leader has claimed that deal such as this are vital to assist the income of the council.