Partnership key to cash troubles

Oct 3 2007 Liverpool Daily Post

TODAY’S news that Liverpool council could face a financial minefield over the funding of Capital of Culture year events is truly disturbing.

Is it really only six days since the city’s programme for 2008 was revealed to the world, amid loud acclaim and international headlines?

Already, the city council has been brought sharply back down to earth, forced to confront the grim reality of potential cash shortages and even service cuts.

Chief finance officer Phil Halsall – the man responsible for alerting the council to potential financial shortfalls, and ensuring measures exist to prevent it slipping into the red – has issued a warning over the funding crisis.

His report says town hall services may have to be cut to pay for the city’s culture year events, departments must keep to their budgets, under-spends hoarded and any initiatives requiring cash be blocked, to offset the £20m still needed for next year’s celebrations.

If money is tight for 2008, the chances that 2009 and beyond will carry the legacy of Capital of Culture must be slim.

The council has options for funding the £20m it needs to find, although none of them can be guaranteed.

It also seems likely that council tax increases could figure.

Labour has described the Lib-Dems as "the Titanic sailing towards the iceberg".

Meanwhile, the Lib-Dems accuse Labour of "scaremongering", and insist that Mr Halsall was simply laying out potential scenarios for consideration.

It would be so much more worthwhile if these two parties worked together on this to achieve workable solutions in the tight timescale left, rather than bickering over the causes.

In 2008, the eyes of the world will focus on Liverpool.

Warnings about potential cash shortfalls to fund more events are disturbing; the prospect that Capital of Culture year will leave no legacy is unthinkable.