PRESS RELEASE: TAX RISE TO PROTECT SERVICES
In response to the news that further central government restrictions will cap any council tax rise in the Liverpool to 1.85%, Green councillors are proposing an amendment that will let Liverpool residents make a decision on their council tax for the coming year.
The Greens are calling for a referendum to let the people of the city, rather than Conservative minister Eric Pickles, decide whether we can protect services that will otherwise be reduced or lost due to central government cuts. In an amendment to Labour’s budget, the Greens have proposed a city wide referendum on a 4% council tax rise.
Sarah Jennings, leader of the Green Group on the council, said:”The people of Liverpool should decide whether we should use the only power left to us to defend local services, through an increase in council tax. This is the only way we can realistically protect vital services for vulnerable people in our city.”
John Coyne, Mayoral candidate for the Greens added: “This Conservative and Liberal Democrat government is on a damaging path of centralised cuts. These are damaging our city and our communities. The people of Liverpool deserve the chance to vote to protect services that will otherwise be lost. I urge the Labour, Liberal Democrat and Liberal groups to back our amendment and let the people decide.”
AMENDMENT
The Green Party group recognises the extreme pressures faced in drawing
up a budget for 2012/13 and planning for subsequent years. Therefore
any criticism of the administration's budget will be fair. We welcome
the change of mind on three issues which were part of a previous Green
Party amendment to the January interim budget meeting: retaining Bulky
Bobs as a free service, protecting school uniform grants and restoring
some funding for child and adolescent mental health services.
The council must set a legal, balanced budget and there are no easy
choices. This amendment does not and cannot change the nature of the
choices that need to be made. Instead it seeks to reduce the scale of
future service cuts mainly by increasing the only tax which the city
council controls - the council tax. Our disagreement with the
administration is not on what kind of cuts will need to be made, but on
how many and how deep.
One capital investment, in particular, should be welcomed and that is
the plan to deal with the problem of the dangerous unadopted roads near
Sefton Park. The £6m cost over two years would be planned to be
financed by unsupported borrowing. We welcome this long overdue
improvement however we do not wish to see the future spending cuts
caused by servicing and repaying a new debt of that size. We propose
instead to apply the effect of a 4% increase in council tax to reduce
and repay that borrowing.
The government has recently imposed a "cap within a cap" for Liverpool
which limits our ability to ask citizens for more than a 1.85% rise in
council tax without having to hold a referendum. We believe that the
future finances of the council and its ability to cope with a worsening
funding crisis cannot be managed without breaking out of this government
stranglehold. Previously we had planned to move a 3.5% council tax
increase believing that this would not have triggered a referendum. The
increase to 4% allows for the cost of a referendum and of some slippage
if the budget decision is delayed.
The time has come for the people of Liverpool to be asked to reject the
government's perverse micro management of this local authority's
finances. Having won a referendum once, the council would be likely win
again if the government tried to reject the democratic wishes of the
people to protect vital services for vulnerable people in future years.
This amendment also proposes the following savings which would also be
used to reduce and repay unsupported borrowing. Costs of financing such
borrowing have to be found from future council budgets, adding pressure
for further and deeper spending cuts.
(1) Save at least £60,000 p.a. by removing the right of councillors to
have free car parking and by removing the right of councillors to
reclaim mileage or any travel expenses incurred within the city
boundary. Councillors would, instead, absorb those travel costs from
within their basic allowances.
(2) Council gives up its policy of refusing to allow mobile phone
antennae on council-owned buildings, except for school buildings. That
policy, having been ineffective in preventing the spread of mobile
telephony, serves no purpose other than sometimes to displace antennae
onto less suitable locations. Potential income from rental of
council-owned antennae sites is hard to estimate but may be of the order
of £25,000 p.a.
(3) Discontinue City Magazine with a saving of £111,000 p.a.
ENDS.