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Thread: 2008 Cash Crisis?

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    Newbie bolshevik's Avatar
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    Default Liverpool asks for culture loan

    What do you think about this story - should Liverpool take out the loan ? Who or what is responsible for the

    budget deficits

    ?

    http://icliverpool.icnetwork.co.uk/0...name_page.html

    LIVERPOOL City Council faces having to borrow up to £20m next year to pay for its year as European Capital

    of Culture.

    The alternative is massive cuts in services, or searching for major cost-cutting efficiencies, councillors were warned last night by

    resources chief Phil Halsall.

    Communities and Local Government Secretary Ruth Kelly is now likely to be asked to allow Liverpool to take out a

    government-backed loan to pay for its culture celebrations in 2008. Normally, Chancellor Gordon Brown’s Treasury will only permit local councils to borrow

    money to pay for projects, rather than one-off events.

    But city council finance managers will argue that Liverpool will reap the benefits of its 2008


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    Capital of Culture year for years, making borrowing the cash a credible solution to a potential financial dilemma. If the Treasury allows a loan to be paid

    back over a number of years, it will enable local politicians to spread the cost of the culture programme. Instead of finding all of the money in one year,

    the council would pay off a few million a year until the loan was cleared, softening the impact on council operations.

    Last night, city council leader

    Cllr Warren Bradley insisted that a money-raising formula made sense for Capital of Culture. “There are ways of raising money on assets owned by the council

    to use for Capital of Culture. I would only want any such arrangement to be for a short-term period,” he said.
    As well as potential loan arrangements,

    Cllr Bradley believes the council could raise culture cash by leasing brownfield sites to developers and diverting the cash they pay for the land into the

    culture budget.

    Opposition leader Cllr Joe Anderson said the council should have been putting money aside since 2003 when it first won the culture

    crown. “By 2008, we will have had five years to save up for European Capital of Culture. It is not as though it has suddenly been sprung upon us.”

    The

    spending dilemma comes as leading Liberal Democrat councillors, helped by finance managers, look at ways of balancing the council books by next week when the

    council meets to fix its budget for 2007-08.
    Last night, with just over a week to go, the gap in the budget stood at £23.6m, a figure that has to be

    reduced to nil by a week tomorrow.

    Next year, the predicted budget gap in Liverpool will rocket to almost £39m, mainly due to Capital of Culture

    costs. The council already knows that it is facing a budget deficit of £32.9m by 2009.

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    Senior Member SteveFaragher's Avatar
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    Default What's the best thing to do when you ae skint

    Yeah go out and buy 10 x £2000 robotic peregrine falcons, jsut what the spin doctor ordered

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    Shapers
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    Things look really rosey with CoC dosen't it

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    Default 2008 Cash Crisis?

    Walton Group threat to 2008
    PROPERTY developer Bill Davies is taking legal action against Liverpool City Council over his failed bid to develop a multi-million pound shopping and leisure centre in Chavasse Park. more
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    Senior Member Howie's Avatar
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    Default

    I think all Liverpudlians were proud of the city having been awarded Capital of Culture 2008 and wanted to support it by not being critical of Liverpool City Council and Liverpool Culture Company and thereby giving the press a big stick to beat us with - but enough is enough! I fear the legacy of CoC will be a very damaging one for the people of this city. Already we have seen cuts in adult education. Even money allocated to a One Stop Shop for Kensington was diverted to pay towards the 08 Place in Whitechapel. Inevitably there will be more cuts to services and more money diverted away from the very people that need it.

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    Senior Member Howie's Avatar
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    Default

    City’s 08 cash banker
    Mar 28 2007
    by Nick Coligan, Liverpool Echo



    PRIVATE firms could take over the running of council assets to help generate money to fund Capital of Culture.

    Town hall finance director Phil Halsall suggests making “better use of existing assets” is one way of bringing in more than £22m still needed to pay for 2008.

    He mentions Colomendy’s transfer to a private company and rent generated by land leased to the Liverpool One shopping district as examples of how the council is already doing this.

    But Mr Halsall today told the ECHO money saved by Colomendy’s handover would not go directly towards 2008.

    The council is currently investigating various ways to find its £22m contribution to Capital of Culture. No final decision will be made until June.

    And the council is still likely to choose a combination of four options revealed by the ECHO earlier this month, including increased sponsorship and financial support from the government.

    The options are part of a financial plan which sets out the council’s spending priorities for the next few years.

    It will be discussed by councillors on Friday.

    Although the Capital of Culture funding gap is mentioned, the report does not set out a solution.

    Mr Halsall says: “The council is most likely to need a combination of all of these approaches and therefore all are being actively pursued.”

    The council has frequently come under fire recently for not setting out exactly how it will pay for 2008.

    nick.coligan@liverpool.com

    Source: icLiverpool

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