LIVERPOOL council finance chiefs have revised up the budget cuts they expect to have to make – by another £50m.

They told city leaders that the city is likely to lose £200m in funding by the time government spending cuts end.

Predictions drawn up by city treasurers suggest that, on top of the £50m the council must save next year, the city will have to cut another £18m from its budget in 2013.

And the figure is expected to rocket up to £32m the following year. Last night, council leader Cllr Joe Anderson said, despite the challenge, the council would still do its best to grow the local economy.

But opposition leaders accused the council of wallowing, while the Government insisted that no final decision had been made on how much the council would be expected to cut, after next year’s £50m savings are made.

Cllr Anderson said the challenge facing the city was unprecedented, adding: “You can go back to the end of the war and you wouldn’t find the shock to the system that we are getting now.

“It’s totally unprecedented. We may come out of it a bit bruised and punch drunk, but I believe we will be able to fight back.”

He said he understood anger at some of the cuts the council had made so far, but insisted there was no alternative.