Budget 2026-2027

Liverpool City Council is currently in the process of setting the budget for 2026/27.

The Government has committed to a new funding settlement for local councils across England from 2026/27. This multi-year settlement will result in funding being allocated where it is most needed, which we believe is an improvement on the previous system.

At the end of the three-year settlement Liverpool will have received a 14.3% increase in what is known as ‘spending power’ from current levels. This will result in the council having the 7th highest level of spending power per head in England, aligned with being the 7th most deprived council area in the country.

We have been progressing a plan to help us manage our money better. This means setting up new ways to keep track of our spending and making sure we don’t spend more than we have.  These include actions being taken on debt write-off, improved income collection and capital (or infrastructure) programme delivery.

There is no doubt that this remains a challenging time for local government. There has been a large increase in homelessness nationally, reflected locally in Liverpool, which is putting pressure on our budget, as well as high levels of demand for social care. We are working extremely hard to manage this situation and reduce the impact, such as offering grants to landlords to bring empty homes back into use so reducing the cost of temporary accommodation.

We are committed to delivering on our Council Plan, which outlines how we will make the city fairer, cleaner and stronger for all.

Our budget for the next financial year includes investment in improving the delivery and effectiveness of services in our communities, including £5.18 million to begin the modernisation of Lifestyles leisure centres, £4.75 million upgrading 23 play areas and improving several parks with new benches, litter bins and the resurfacing of pathways. £2.2 million will be allocated to establish communal bin ‘hubs’ over the next three years in areas with a high number of terraced homes. This initiative aims to increase recycling rates and support food waste collection beginning in 2026.

We are expecting to increase Council Tax by the maximum allowed - 2.99 per cent, plus a further 2 per cent to help meet adult social care costs (4.99 per cent in total), as a contribution towards the overall cost of services. The Government assumes councils will increase bills annually when it allocates the Local Government Finance Settlement. If there is no increase, it could lead to reduced essential services, particularly affecting our most vulnerable residents.

We will update this page when the budget for 2026/27 has been set.