Council facing £29m budget blackhole amid 'unmitigated pressures' | Merseyrail passengers say 'it's a farce' after timetable update

By Dan Haygarth | 12/11/24

Hello,

Up and down the country, council budgets are not in a good place. Last week, the ECHO reported that Wirral Council could go bankrupt in two years as it attempts to deal with a £21m budget blackhole.

Now, Liverpool City Council’s mid-year financial update has revealed that the local authority is facing a £29m budget blackhole of its own. Liam Thorp has the story and David Humphreys will bring you more in tomorrow’s edition, following tonight’s cabinet meeting.

Elsewhere, Merseyrail users have shared their frustration after timetable changes were announced at short notice due to the operator's new fleet of trains undergoing maintenance.

And in other news, there could be changes on the way for the Albert Dock as a planning application for an increase in plants and an upgrade to the public realm has been submitted.

Thanks for reading.

Liverpool Council facing £29m budget blackhole amid 'unmitigated pressures' 

Liverpool Council is facing a potential budget gap of nearly £30m as the cash-strapped local authority weighs up options for bringing more revenue into its coffers.

Liam Thorp reports that council leader Liam Robinson has moved to reassure the people of Liverpool that the council is not in danger of going bust at a time when others - including Wirral - have warned of potential bankruptcy in the coming years. But that doesn't mean Liverpool isn't facing major financial challenges as leaders work through options ahead of next year's budget plans.

In the council's mid-year financial update, which will be discussed at a cabinet meeting this evening, it makes clear how difficult things are in the city in terms of growing pressures around social services and homelessness. The local authority is currently projected to overspend on its Children's Social Care budget by an enormous £19m, with an £8m overspend predicted in Adult Social Care and nearly £12m extra in homelessness and temporary accommodation.

The overall projected overspend for the financial year of 2024/25 stands at £28.07m, but this is without mitigation and Cllr Robinson said lots of plans are in place to bring this number down - including some potential increases to charges and fees for areas like car parking and skip permits, although no budget options have been confirmed at this point.

The report notes that some additional funding was provided from central government in Rachel Reeves' first budget speech last month for areas including social care, homelessness and education. While the council notes this as a positive step, it states that the upside from this new money is being eroded by the rate of increase in 'unmitigated growth pressures.'

The report adds: "This does not look to be an improving situation as future medium-term funding looks to be tapering off substantially whilst demand led pressures continue to rise."

It states: "This financial year has seen a continued and worsening position of the many issues that the council faced in 2023/24, particularly growing demand for our services, notably adult’s and children’s social care, special education needs, home to school transport and the impact of homelessness." The council now holds relatively low levels of non-ringfenced reserves in comparison to similar councils around the country.

Council leaders are now anxiously waiting for details of the local government funding settlement from government, which will provide more clarity and allow them to work on concrete proposals ahead of its budget meeting in the spring.

Cllr Robinson said: "We are at the mid-year point so it is right that we have an absolute focus on the money. Yes there are lots of pressures, but all the pressures we face are similar with any big city council across the council.

"We are keen to reassure people that Liverpool Council is not in Section 114 territory, so we are not going bust and we have a very detailed approach to how we want to mitigate some of those overspends that are there because of demand pressures."

"What was in the budget was positive in terms of giving some new money to local authorities, but as we know, this government has inherited a real financial mess. The budget was largely about tidying up a lot of the mess. When we look towards the Comprehensive Spending Review, that is where we think there are much greater opportunities for councils like us here in Liverpool."

Asked about potential cuts, Cllr Robinson said budget options are still being discussed, but said areas like charges for skip hire, car parking and fixed penalty notices were the sorts of options being discussed. He said the council were not currently concerned about the prospect of compulsory redundancies and would do everything possible to avoid that scenario.

Merseyrail passengers say 'it's a farce' after timetable update

Merseyrail passengers have slammed an "absolute farce" from the operator after a notice was issued at 9pm on Monday evening warning of major changes to timetables the following morning.

The notice stated that the network's New Brighton and Headbolt Lane lines would be operating a reduced timetable today (Tuesday November 12). It was explained that the sudden changes were down to an increased number of the operator's new fleet of trains undergoing maintenance.

In a statement, Merseyrail said: "We are working with Stadler who are responsible for the maintenance of Merseyrail’s trains, to ensure a normal timetable can be restored on both lines as quickly as possible."

Both the news itself and how and when it was communicated has caused anger among the travelling Merseyside public. On X, Woody said: "The new trains are less reliable than the near 50 year old trains they replaced. It seems it would be easier for Merseyrail to message when the trains are running than not running."

Sean added: "Let’s face it, the whole roll-out has been an absolute farce. The new trains have been consistently unreliable for 18 months and rush hour capacity has been significantly reduced to the point that injury due to overcrowding is a daily risk."

Fellow social media user Phil said: "Appalling lack of notice. If this had to happen commuters should have been informed last week to plan ahead. However maintenance of trains shouldn't affect timetables with proper planning."

Mark took aim at Merseyrail, adding: "I don’t say this about many things but that’s actually a disgrace. All brand new trains, at such short notice, and only targeting 2 lines. Trust levels with you guys must be at an all time low."

The new fleet of Class 777 trains started to be rolled out across the Merseyrail network in January 2023, with that roll-out still ongoing. In their first year, the fleet faced lots of difficulties including delays, breakdowns and software issues. At one point all the new trains had to be taken out of operation due to a software issue.

The problems intensified when the new £80m Headbolt Lane station opened in Kirkby, with a huge number of delays and cancellations that transport bosses blamed on a new battery technology that was being used to transport the new vehicles to the new station.

Speaking at the city region’s transport committee earlier this year, Neil Grabham, managing director at Merseyrail, said performance of the £500m fleet that was rolled out last January had been “tremendously damaging” for passengers who wanted seamless journeys.

Merseyrail and the Liverpool City Region Transport Authority have been contacted for comment.

Changes could be coming to the way the Albert Dock looks

New plans could change how the Albert Dock looks. Royal Albert Dock Liverpool, the freehold ownership vehicle of the dock, has submitted plans to Liverpool City Council to increase green areas around it, as well as adding new plants and a new suite of outdoor furniture.

Those behind the plans say the upgrades will aim to improve the visitor experience and its accessibility while celebrating the dock's heritage. The team from the Royal Albert Dock worked with Liverpool design studio Planit to deliver the plans, which are the first phase of a series of improvements.

Work is due to begin next spring, subject to planning approval. Three initial areas of the dock will be developed as part of a 'multi-zonal strategy', with each zone responding to the characteristics of its surroundings.

The areas will benefit from planting with up to 40 new species of plants. Underutilised areas will be improved with new seating and furniture, and throughout the site the cobbles will be treated with a grinding machine to provide smoother routes and improved accessibility for wheelchair and pushchair users.

At the North site entrance adjacent to Tate Liverpool, Mermaid Courtyard is designated as a nature-led extension to the art gallery, with plans to use planting and new furniture to soften the external terrace area which Tate Liverpool will open onto following their current renovation works. The landscaped area will offer a space that can be used for community based events and workshops.

The walkway adjacent to the Maritime Museum, Hartley Quay, will be reconfigured to increase accessibility and provide a welcoming waterfront space, complete with new planting and picnic tables and benches which will have a chunky, timber aesthetic reflective of the former industry of the docks. These additions will reinforce the dock’s scenic position and its waterside views, whilst enhancing the green infrastructure and supporting climate resilience.

Lastly, the Northern Gateway - the first experience of Royal Albert Dock for visitors from the city centre - will be greener, softer and more welcoming through the introduction of places to sit. The area will be enhanced with new information boards and signage to share information with visitors about the heritage of the docks.

The dock is currently the subject of other renovation projects. Liverpool City Council earlier this month approved plans for a new dedicated entrance at the Martin Luther King Jr building as part of National Museums Liverpool's £58m improvement works on the waterfront. Additionally, the Tate is currently closed as refurbishment works take place.

Helen Legg, chair of Royal Albert Dock Liverpool limited, said: "Liverpool’s waterfront, and in particular the Royal Albert Dock, is the city’s greatest asset. As the largest collection of Grade 1 listed buildings in the country, it’s essential that we invest in maintaining and developing the dock. We are doing this alongside ambitious plans by Tate and NML to reimagine the museums on the site thus reinstating Royal Albert Dock’s cultural and heritage significance."

Jacob Loftus, CEO at General Projects said: “The public realm works proposed set out our intentions to modernise and activate the Royal Albert Dock for the local community and visitors alike. This enables us to create a truly unique public offer while celebrating the heritage and cultural qualities that make this area of Liverpool such an intrinsic part of the city”.

Danny Marsh, studio director for Planit Liverpool, added: “This was an exciting opportunity to refresh the Royal Albert Dock public realm masterplan, and reassess the collective priorities of the landlord, tenants, public and planet. The Royal Albert Dock is one of the most important historical and cultural sites in the UK, and we want to make this an inviting and attractive place for everyone for generations to come.”

Spread over 375,000 sq ft, The Royal Albert Dock is the home of the largest group of Grade I listed buildings in the country.The dock's transformation into a leisure and retail space helped drive regeneration and a change in Liverpool's fortunes in the 1980s.

It was given Royal status in 2018 and is visited by more than six million people a year. Royal Albert Dock Liverpool Limited is the freehold ownership vehicle of the wider Albert Dock owned jointly by General Projects and Neo Capital, Tate Gallery, National Museums Liverpool and The Colonnades Residential Limited.

Contact us

Is there something you'd like to run by us? Please contact me at dan.haygarth@reachplc.com - If you have enjoyed reading this email, why not forward it to a friend? And if your friend has passed this on to you, you can sign up for free daily updates at this link.