'Wasteful' council costing city residents £100 each

Jan 25 2008 by Rob Merrick, Liverpool Daily Post

EVERY council taxpayer in Liverpool pays an extra £101 on their annual bill because of inefficiencies at Liverpool Town Hall – the worst record in the country.

That was the stark claim from the Government last night in a move which sparked a major war of words with Liverpool City Council.

Council leader Warren Bradley reacted with fury after ministers put the city at the top of a league table of local authorities with high bills because money is not spent efficiently.

John Healey, the local government minister, said Band D bills in Liverpool would be cut by £101 – or better services would be provided – if the Town Hall stamped out waste.

The study comfortably made Liverpool the authority where council taxpayers are hit hardest – ahead of Birmingham (£92), Leeds (£65), Lancashire (£50) and Norfolk (£50). Announcing a £185m support package to boost efficiency, Mr Healey said: “Council taxpayers and businesses rightly expect ever improving services and better value for money.

“The demand for efficiency has been driven by central government in the past, but in future this demand will increasingly, and rightly, come from local residents.

“It isn’t just about how much money the Government gives to councils. It is also about how much they can save themselves to improve services, or cut council tax bills.”

But Cllr Bradley quickly pointed out that, when the Liberal Democrats took control of Liverpool a decade ago, its council tax was the highest in the land.

Since then, bills had risen by just 1.2% a year – the lowest increase anywhere in the country – he said, adding: “We even froze council tax for three years and cut it by 3% in 2002.”

“We have achieved all this by dramatically cutting our costs by more than £150m, despite having reduced grants from the Government and increased costs placed on us every year.

“No council in the country has a better record than Liverpool in keeping council tax down, while at the same time improving services such as social care, education, parks, libraries and leisure centres.

“Our policies have given the private sector the confidence to invest in Liverpool which has led to billions of pounds being invested in the city.”

Last night, Liverpool won support from the Local Government Association, which said: “According to the Treasury, councils are the most efficient part of the public sector. If Whitehall were to follow the example set by councils, then perhaps people could look forward to a cut in their income tax.”

Asked to clarify, the department of communities and local government (DCLG) insisted its league table did not mean Liverpool was the most wasteful council.

Instead, it had worked out the potential savings at the 10 biggest spenders. The saving per bill was highest in Liverpool, because the city has fewer council taxpayers than some others.

Mr Healey also revealed plans to force all authorities to include details of how they rate on efficiency on council tax bills – as an incentive to cut waste.

Residents were “entitled to know how councils perform on efficiency when they receive their bills”, he added.

The minister said he wanted to claw back £4.9bn in efficiency savings over three years – 3% at each authority.

OPINION: PAGE 10