Council reports a balanced budget and announces further investment to help residents to thrive

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Council reports a balanced budget and announces further investment to help residents to thrive

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Members at the full Council meeting tonight received a positive budget update for 2025/2026 with a balanced budget being approved for the year.

The council has benefitted from the new Government's approach to local Government funding. Knowsley has received a 9.9% increase in core spending power (an increase of £312 per dwelling) compared to an increase of 4.2% nationally (an increase of £90 per dwelling).

Fairer funding, as well as the council's ambitious growth agenda and robust financial management, has meant that the council can invest over £24m in essential support and services. This will include the stability of the social care market and managing the increase in demand for council services, including adult and children's social care and home to school transport.

Also included is permanent investment of £1.982m which will be targeted at domestic abuse support, community hubs, the Children's Services improvement programme, continuation of the Stronger Communities Fund, extending the Environmental Health Enforcement (Pest Control) capacity and supporting an events programme in the borough's town centres.

Additionally, £2.175m of one-off investments have been agreed which will ensure the continuation of the cultural events programme, support the Children's Services improvement programme, investment in the employment and skills service, the extension of the holiday activity programme (which has previously provided 9,000 places for free activities over the May, October and February half terms) and Christmas light events in the borough's town centres.

Also endorsed was the Government's assumption of an increase in Council Tax of 2.99% in addition to a further Adult Social Care precept of 2% (a total Council Tax increase of 4.99%).

Cllr Jayne Lonergan, Cabinet Member for Resources, said:

"We've been lobbying for fairer funding for 14 years and I'm please to say that we have finally been listened to with the new Labour Government allocating funding based on local needs.

"Our long-term economic strategy has allowed our Council Tax base to grow by 27% over the last decade, generating an additional £16.6 million in permanent funding. Through our participation in the Business Rates Retention Scheme and our commitment to supporting new and expanding businesses, we've retained an additional £7.5 million in Business Rates receipts.

"The Government still assumes that all councils will raise Council Tax and if we didn't do this, then we would be talking tonight about making £3.6 million of cuts to services and jobs - not just this year, but every year going forward.

"We do not want to make these cuts - which is why we must put forward a Council Tax increase of just under 5% - with at least 2% of this going to fund Adult Social Care.

"Guided by our Council Plan, our budget is focussed on tackling inequalities and supporting Knowsley residents to thrive. Overall, we plan to spend £217 million on Council services next year. This includes adult social care services, upholding our commitment to pay the Real Living Wage to external care workers, early help and children's social care, domestic abuse support and supporting residents to address the barriers and inequalities they face.

"Our focus on Regeneration and Economic Development will see £7 million invested to promote jobs and growth, with special emphasis on career advice in schools.

"And next year we will invest £68m in capital schemes across the Borough - including transport improvements; the continued regeneration of our town centres; temporary accommodation projects; and enhancements to our parks and infrastructure.

"All of this comes without any reductions in council services or any job losses.

"I'm incredibly proud of how this council continues to perform, supporting our residents to thrive, and how we are able to report a balanced budget for 2025/2026."

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