City of Liverpool going bust over virus

Liverpool on verge of declaring bankruptcy because of coronavirus View 31 comments Zoe Drewett Thursday 30 Apr 2020 11:00 am Share this article via facebookShare this article via twitterShare this article via messenger 3.5k SHARES Liverpool Council is considering declaring bankruptcy as Covid-19 will cost it almost £80 million (Picture: Reuters) Liverpool is the second city in the UK facing bankruptcy due to the coronavirus crisis. The city’s council is said to be considering imposing emergency spending controls after the government ‘failed to offer anywhere near enough support’ when the pandemic hit. Communities Secretary Robert Jenrick pledged that councils across the UK will be reimbursed for their emergency epidemic spending, but Liverpool councillors say what has so far been offered barely scratches the surface. The council will spend £78 million through increased costs and loss of income because of Covid-19 this financial year, the Liverpool Echo reports. But it has only received £34 million from the Government in two tranches, with the second lower than the first. Central Government funding during the coronavirus crisis simply isn’t enough, Liverpool Council has warned (Picture: Reuters) Coronavirus latest news and updates Visit our live blog for the latest updates: Coronavirus news live Read all new and breaking stories on our Covid-19 news page The latest coronavirus symptoms explained Who needs to go to work, who needs to stay at home and who is classed as a key worker? The council was already struggling due to previous austerity measures, announcing in its latest budget in February that it needed to make £30 million in savings after losing a staggering £436 million in central government funding since 2010. Liverpool Council is said to have just £17 million in reserves, not enough to cover its coronavirus losses. It is said to be preparing to issue a section 114 notice at an emergency budget meeting in June if the Government does not step in to help. The notice is an admission that a council does not have resources to meet current expenditure and that its financial reserves are depleted. It would trigger emergency spending controls, meaning all council spending would be banned aside from the statutory services used to protect vulnerable people. It comes a day after Windsor Council announced it is also facing bankruptcy after huge losses caused by a lack of tourism during the lockdown. The Conservative-run authority benefits from hundreds of thousands of visitors each year drawn in by Windsor Castle – where the Queen is currently staying – but it is poised to issue its own section 114 notice after admitting it has ‘severe financial problems’. Robert Jenrick announces £1.6billion package to support councils Play Video Loaded: 0%Progress: 0% PlayMute Current Time0:00 / Duration Time0:53 Fullscreen Liverpool Council says it has been hit hard because of the way in which Government funding has been allocated – based on population rather than need. Councillors argue it has left some of the poorest areas, like Liverpool, struggling to cope, while some already affluent authorities in the south of England have seen their funding go up. The city’s mayor Joe Anderson told the Echo: ‘Technically we could go bankrupt. I have spoken to the finance director and it may be that we have to file a Section 114 notice which says we have to stop all spending. ‘We simply will no longer have enough income to meet what we are spending.’ Opposition leader, Lib Dem councillor Richard Kemp, added: ‘The reality is that even if we stop spending on anything except statutory services, that probably won’t be enough.’ On Tuesday, Mr Jenrick announced a further £1.6 billion will be allocated to councils across the country. He said: ‘Councils are playing a central role in our national fight against coronavirus and the government continues to back them at this challenging time.’ He said the money will be shared ‘in the fairest way possible’ saying ‘a clear majority’ will receive at least £1 million. Get in touch with our news team by emailing us at For more stories like this, check our news page. CORONAVIRUS UPDATES from Get the need-to-know coronavirus news, features and tips, right to your inbox. Sign up Not convinced? 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Published by technofiend1

Kazan- Kazan National Research Technical University Казанский национальный исследовательский технический университет имени А. Н. Туполева he graduated in Economics in 1982

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