Liverpool City Region’s metro mayor Steve Rotheram and other local leaders have jointly issued a letter to the levelling up secretary asking for additional government support.
The letter said that due to rising inflation, the cost-of-living crisis and growth in demand for services, “our councils are now facing enormous financial difficulties”. It has been signed by Rotheram, Liverpool Mayor Joanne Anderson and the leaders of Halton, Knowsley, St Helens, Sefton and Wirral councils.
It states: “We considered it essential to write to you to illustrate the real and current impact of inflation on our ability to deliver much-needed support for local people at the same time not only as dealing with a cost-of-living crisis but also ‘levelling up’.”
The seven political leaders point out that inflation has already driven up the costs of the raw materials, labour and services that councils must pay for to provide essential public services. In addition, the cost-of-living crisis has increased the demand for adult and children’s social care.
They highlighted that these financial issues have caused a dramatic shift since the government announced its 2022/23 funding settlement for councils last year. Council budgets were based on estimates that both price inflation and wage growth would be in the region of 3% in 2022/23.
However, the latest estimates from the Office for Budget Responsibility are that the Consumer Price Index will reach 7.8% this year.
The letter added: “It would be unfair and unrealistic to expect stretched local authorities to be able to cope with the scale of those changes without further support.
“We therefore urge you to ensure that the inflationary pressures facing local authorities in 2022/23 are properly and fully funded as an immediate priority.”
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