Combined Authority calls on residents for tax rise to fund new budget proposals

Liverpool City Region Combined Authority aims to increase charges to Council Tax payers to pay for its 2025-26 budget.
It said its budget is set against a “challenging economic backdrop” and balances the need to support households, businesses and local authorities while addressing the authority’s own financial pressures.
It said all efforts have been made to reduce costs while maximising benefits to the city region.
Nevertheless, it said in a revenue budget of just over £292m, the Mayoral Precept is set to rise by between £3 to £4 a year for most Liverpool City Region households during 2025/26 – equivalent to around 1p extra per day.
The proposed rise is the first since the precept was introduced seven years ago and a similar increase is planned for every three to four years going forward to help fund Mayoral priorities.
The Transport Levy, paid by local authorities to support public transport, will also rise by 1.7% – in line with the September 2024 inflation figure. The authority said the increase reflects higher inflationary pressures within transport – particularly energy costs and pay – but has been kept to a minimum in recognition of the immense financial pressures facing local authorities.
It said the levy is significantly lower than 10 years ago.
Steve Rotheram
The authority said its new budget seeks to develop public transport, grow the economy and train tens of thousands of people.
Set to be considered at this month’s Combined Authority meeting, the budget includes more than £46m to fund the city region’s generous concessionary travel scheme which offers travel passes to residents at the age of 60, seven years ahead of the national scheme.
Care leavers, apprentices and people with disabilities will also benefit from discount and free travel schemes and the price of a MyTicket – giving young people all-day unlimited travel in the city region – is frozen for a seventh year running, remaining one of the cheapest child tickets in the country.
The budget includes an extension to the £2 bus ticket price cap and funding to develop publicly-backed plans for the Combined Authority to take control of the city region’s bus network, determining fares, routes, timetables and quality of vehicles.
Ensuring the region’s residents and businesses have the right skills to prosper continues to be a priority, it said, with more than £60m to fund training for tens of thousands of city region adults.
Funding will continue for the city region’s Freeport and Innovation Zone programmes, which are designed to increase inward investment and support business growth and jobs in key industries.
With digital connectivity vital for innovation, quality of life and economic growth, the budget supports the city region’s digital programme and development of an AI Task Force.
The move follows the success of the city region’s first international AI Summit in November and this week’s announcement that US tech giant Kyndryl is to create up to 1,000 AI-focuxed jobs at a new base in the city region.
The budget also includes funding for the city region’s pioneering Race Equality Hub that’s targeting employment inequalities and removing barriers in the labour market for people from Black, Asian, and Minority Ethnic backgrounds through a focus on training, employment support and business assistance.
Liverpool City Region Mayor, Steve Rotheram, said: “This budget sets the course for a Liverpool City Region that’s the best place to grow up, grow a family, and grow a business.
“We all know how tough the past few years have been after more than a decade of austerity – with rising costs and pressures hitting households and businesses alike.
“But even in challenging times, this budget focuses on growth – growing opportunities, growing ambition, and growing the quality of life for the 1.6 million people who call our region home.”
He added: “This is devolution in action – local decisions, made by local people, for the benefit of local communities. And with a new government ready to work with us, we’ve got the chance to go even further, unlocking opportunities that deliver real, tangible benefits for our area.”
CGI of Mersey Tidal Barrage
The city region’s ambitious target to be net-zero by 2035 is backed by funding to develop the world’s largest tidal power scheme on the River Mersey that would provide clean, predictable energy for hundreds of thousands of homes for 120 years.
Schemes to make thousands of homes more energy efficient will also be funded and the Mayor’s Community Environment Fund, which has helped nearly 100 grassroots green projects, will be supported for a fourth year running.
More than £300,000 has been earmarked for cultural projects.
A second part to the budget covering capital spending on buildings and infrastructure, including major investment projects such as the new Baltic Station, smart ticketing and the new Mersey Ferry, will be considered at the Combined Authority’s meeting on March 7.
Meanwhile, the Combined Authority is being asked to approve funding of up to £259m to fit energy-saving measures to 26,000 city region homes and more than 30 public buildings.
The new investment includes £112m to help social housing providers retrofit up to 18,000 homes. A further £117m would be distributed via a local grants scheme to around 8,000 homeowners and private renters.
Also, £30m will also go towards retrofitting energy-saving measures at 30 public buildings, including historic town halls, across the city region.
The initiative is part of a five-year carbon action plan to make the city region net zero by 2035 and investment in the scheme could rise to almost £400m over three years.
Steve Rotheram said: “This significant investment demonstrates our ambition to lead the way in tackling the climate crisis while improving the everyday lives for people across the Liverpool City Region.”
The Combined Authority has already secured £105m to retrofit 10,000 homes with typical upgrades including triple-glazed windows and doors, wall and loft insulation, new roofs and interior ventilation.
Under this latest initiative it is looking to secure investment for home improvements under the Government’s Warm Homes scheme.
A new partnership with 24 housing associations will benefit from a £112m grant from the Warm Homes Social Housing Fund. Match funding could make a total investment of £221m. This will retrofit energy efficiency measures in up to 8,500 homes in the city region with a further 10,000 delivered across the wider North West.