PEOPLE in Wirral could see their Council Tax increase by nearly 5 per cent as the council seeks to close its huge budget gap.

The move would generate £3.2m for cash-strapped Wirral Council. The local authority currently faces a budget shortfall of £32m and has drawn up millions in budget cuts, savings as well as using reserves to try and close this gap.

This could lead to ten libraries closing as well as a leisure centre with other cuts to services people across Wirral use.

Several of the proposals look to increase income with one being a recommendation by council officers to increase the amount people pay by the maximum  level of 4.99%. Part of this rise will go towards funding adult social care in Wirral.

The move has been supported by the council’s watchdog Independent Assurance Panel who said it would help close the local authority’s budget deficit.

In a letter in early December to senior officers, Council leader Janette Williamson, and Conservative’s Tom Anderson, the panel recommended the move to “increase council tax to the full 5% (as many other councils will be doing).”

It added: “The Panel strongly supports that effective consultation on savings proposals and the possible level of Council Tax increase is commenced urgently as any delay will possibly impact the ability to deliver savings from the start of the financial year.”

When asked after Chancellor Jeremy Hunt made an announcement that councils could raise council tax by 5% without a public vote, Cllr Williamson said: “At this point I feel very angry and I’m not in favour of it.

She added: ““Why should our council tax payers, particularly the poorest, have to pay for this government’s incompetence, this black hole that was blown into the economy by Liz Truss?”

The panel also expressed concern that the use of reserves to balance the council’s budget this year as well as for 2024 “will limit the scope for future financial flexibility given General Reserves still being below the recommended level.”

However it said it was pleased with steps the council was taking to monitor its finances and was assured savings passed in spring 2022 would be delivered before the end of this financial year.

Councillors have been asked to approve a number of options at next week’s Policy and Resources meeting on January 18.

These include support for those on the lowest incomes remaining the same. They will be aligned to changes in benefits and Universal Credit. An audit and risk management committee report revealed this support costs the council more than £30m.

A council Discretionary Hardship Relief scheme that “offers help and assistance in exceptional cases of hardship” will also remain in place.

Domestic refuge Wirral Women’s and Children’s Aid will also continue to receive a 100% discount while care leavers would still receive the same discount.

Some changes have also been proposed as part of the plans reducing the time houses have been empty from two years to one before charging 200% council tax. This will increase to 300% if it has been empty for five years and 400% if for ten.

This would come into effect in 2024 as would a double council tax on second homes.

Over the next month and a half, councillors will decide next year’s budget which will likely be an issue in the upcoming elections.

The panel said it acknowledges “the all-out elections in May 2023 will continue to create a relatively volatile political environment that may well be unhelpful when there is such a challenging budgetary situation.”