Drivers in the North West could see parking charges rapidly increase as a local authority grapples with a predicted £29million overspend in its annual budget.
The financial challenges facing Liverpool Council have been primarily driven by spiralling demand in social services and homelessness support.
Now council leader Liam Robinson addressed the situation ahead of a crucial cabinet meeting where the authority’s mid-year financial update was due to be discussed.
The mounting pressure on council services reflects a broader pattern affecting major local authorities across the country, particularly in social care provision.
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Liverpool council to discuss price hikes in committee meeting
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Among the measures being considered to address the deficit are increases in parking charges and on-street skip permit fees.
The council is also scrutinising its use of agency staff and overtime spending as part of its cost-saving efforts.
These initiatives form part of a broader strategy to manage the council’s financial position. Robinson indicated that all options would be evaluated when setting the new budget in February.
The review of parking charges comes as the council is currently experiencing some technical issues with its parking charge notice system, though this is being addressed.
He suggested that a Labour Government would provide better support for local authorities than the previous Conservative administration.
The council leader acknowledged these financial pressures are not unique to Liverpool, with large councils nationwide facing similar challenges.
He told BBC Radio Merseyside: “Liverpool City Council is not going bankrupt and we’re in the right, stable position that we should be at this moment half way through the financial year.”
The council leader’s assurances came as the authority works to address the significant budget challenges. Each department is actively working to mitigate the predicted deficit.
The council will be setting a new budget in February for the next financial year.
“Obviously we’ll be looking at all of those different options, particularly when we get our financial settlement from the Government later on this year,” Robinson said.
But despite the significant financial pressures, Robinson has emphasised that the council remains stable and is not at risk of bankruptcy.
The council’s mid-year financial update shockingly revealed a £19million overspend on children’s social care services.
An additional £11.8m overspend has been identified in homelessness provision. The total predicted deficit has been slightly reduced to £28.8m due to small underspends in other areas of council operations.
Robinson added: “There’s lots of detailed work that’s going on to make sure that we balance our budgets by the end of the financial year. I think the key thing from our perspective is that we’re managing that very, very closely in terms of some of the overspends that we’ve got.”
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Parking charges will go up to help manage the council deficit
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Drivers can be slapped with a £70 or £50 fine for breaking parking rules which must be paid within 28 days of the Penalty Charge Notice being issued.
However, if paid within 14 days it will be reduced by 50 per cent to £35 or £25 respectively.
