Merseyside: Funding of Local Authorities

Wirral has faced severe budget cuts, with a 53% real-terms reduction in government funding since 2010. This has led to significant staffing reductions and service cuts, leaving residents paying more in council tax for fewer services. Angela Eagle criticised the Government's local finance settlement as unsustainable and called for relief from further cuts. Responded with frustration, saying 'Oh, come on!'

The levelling-up funding is politically skewed, with wealthier areas receiving ten times more than the poorest. Knowsley, one of the most deprived boroughs in England, received no funding while Central Bedfordshire received £90 per head despite being far less deprived. George Howarth asked how the Minister can justify this allocation and sought assurances that Knowsley will receive support for its town centre regeneration.

Kim Johnson highlighted the severe budget cuts in Liverpool over the past decade, praising local councillors and officers for their efforts despite limited resources. He noted that Liverpool is the third most deprived local authority in England with in-work poverty at record levels and child poverty increasing rapidly. Johnson criticised the government's levelling up programme as another broken promise and pointed out the discrepancy between soaring energy bills and profits of companies like Shell, while councils face a £34 million cut. He urged for multi-year funding settlements to provide stability and phase out bid funding culture.

Maria Eagle highlighted the severe impact of austerity cuts on Knowsley borough council, stating that it has lost over £100 million and faces an average loss of £485 per person compared to a national average of £188. She noted that Knowsley is ranked as one of the most deprived areas in England and suffers from high levels of fuel poverty and rising costs of living. Asked if the Minister would give way to discuss a specific point.

The areas represented by Knowsley and St Helens have had their budgets eviscerated over the past decade, leading to greater hardship for communities that still struggle from job losses. Less well-off areas do not raise as much council tax or business rates as wealthier ones, making it hard for them to catch up.

Mr Whitley thanked the hon. Friend for raising the issue of Woodchurch leisure centre and swimming pool in Birkenhead, highlighting its importance as a community asset serving some of the poorest communities in the area with worse health outcomes compared to more affluent areas. Mick Whitley discussed the dire situation facing Birkenhead, noting that it ranks among the top 1% for deprivation nationally. He highlighted proposed cuts to youth services and libraries, as well as funding reductions affecting essential community projects like the Hive youth zone. Asked if the Minister would give way to discuss the closure of libraries in Birkenhead.

The speaker expressed concern about the £27 million of additional austerity imposed on Wirral and highlighted cuts to libraries, leisure centres, and golf courses. He cited a 50% real-terms cut in funding for every Merseyside local authority since 2010 and criticised the levelling-up White Paper as lacking new money and vague targets.

The Member supports the lead MP's stance, highlighting the importance of preserving Woodchurch leisure centre and swimming pool in areas with higher percentages of people with long-term health conditions.

Councils are being forced to increase council tax precepts while making deep cuts to local services, with Liverpool City Council facing a £34 million revenue gap this financial year. The degradation of local government finances since 2010 has exacerbated geographical inequalities and limited the potential of communities in Merseyside.