Gordon Brown fails to offer 08 cash solution

Dec 20 2007

GORDON BROWN predicted the Capital of Culture year would be a great success – but ducked a question about the financial crisis it has triggered.

Quizzed by the Daily Post at No.10, the Prime Minister revealed he would be visiting Liverpool next year to join in the celebrations.

And he said the "spirit" he detected on his last visit to the city had convinced him that the "great preparations" would be fulfilled.

Mr Brown would not be drawn on the Liberal Democrat-run city council's proposed solution to plugging a £20m black hole in its Capital of Culture finances.

The council wants to sell land and buildings and use the money raised to fill the gap, but requires government permission to do so.

Last week, it won support from Liverpool's Labour MPs, but the Government has not agreed to budge, despite numerous meetings with ministers and officials.

Questioned in Downing Street, Mr Brown said: "That's a matter for any discussions with the local government minister Hazel Blears."

The Prime Minister added: "Let me congratulate Liverpool on being the Capital of Culture. I think they have made great preparations and I managed to see them at first hand. I believe the spirit in Liverpool is to make this a great success over the course of the next year, and I look forward to visiting Liverpool to congratulate them on what they are achieving."It is already a great cultural capital - and will be more so over the next few months."

The city council is also seeking government permission to bend financial rules to allow it to re- mortgage property – known as capitalisation.

Its fall-back option is to use its reserves and balances, but its chief finance officer warned in his last quarterly review that this option was not guaranteed.

The Labour opposition have warned a combination of service cuts and an above- average council tax rise may be needed.

Last Friday, city MPs Maria Eagle (Garston), Louise Ellman (Riverside), Peter Kilfoyle (Walton) and Jane Kennedy (Wavertree) met council leader Warren Bradley to discuss the crisis.

Ms Eagle said Cllr Bradley had left it late to ask the MPs to join the lobbying campaign, with the start of Liverpool's flagship year now just 12 days away.

The Daily Post spoke to the prime minister at his last monthly press conference of the year.