Liverpool begs Government for culture cash help

Dec 14 2007

crisis in culture

Liverpool City Council is calling on the city’s MPs to help it to borrow £20m to pay for the 2008 Capital of Culture celebrations.

The plan is to borrow the money against public assets such as buildings or land in a process called Alternative Financing Mechanism (AFM).

But the council needs permission from the Government because it is illegal for local authorities to take out mortgages.

Council bosses will meet with Garston Labour MP Maria Eagle, Peter Kilfoyle, Labour MP for Walton, Louise Ellman, Labour MP for Liverpool Riverside, and Wavertree’s Labour MP Jane Kennedy.

A council spokesman said no buildings or plots of land have yet been chosen for either sale or mortgage.

He added that a formal application will be made to the Government before the financial new year.

He said: “The meeting is to discuss cross-party support regarding the funding of the council’s budget next year.

“It is part of our ongoing dialogue with the Government about the financing options that have been put forward for 2008-09.”

One of the conditions of winning Capital of Culture status is that, while the several runner-up cities are provided with Government funding for their celebrations. The actual winner has to pay its own way.

Ms Eagle said: “I am sure the Government will do all it can but it is not going to hand over a blank cheque.”