Documents discovered yesterday during an occupation of Liverpool Town Hall’s council chamber appear to contradict claims made by Liverpool’s Labour-led Council. The council is implementing deep spending cuts, stating that “there is no money”. The documents, found on a council chamber desk, dispute this. They show that in December 2011 the executive Finance Director, Peter Timmins, proposed:
“To change the Annual Investment Strategy within the Treasury Strategy 2011/2012, so that the Council can invest more of its cash surpluses in Government supported banks, to improve its income and lessen its risk exposure.”
He went on to recommend:
“That the Investment Limits within the Treasury Strategy 2011/12 be changed from £20 million to £40 million for both Lloyds Banking Group and Royal Bank of Scotland Group.”
The statement shows that instead of being used in the provision of public services or a reduction in council tax, this money was instead deposited. The amount appears to be in addition to the reserves which councils are legally required to keep for a national emergency. The public austerity-driven rhetoric of the Council thus seems contradicted by internal financial planning discussions. A surplus does not suggest a lack of funds or that “there is no money”.
Another document found on a bench in the chamber revealed considerations of which services would be cut by the council. It has considered stopping teen pregnancy services, school uniform grants and milk provision for 5-7 year olds entirely. The “red status” of these cuts suggest that these services are not currently under immediate threat.
It is puzzling that the Liverpool Council would opt to invest additional money instead of using the funds to lessen the devastating impact of cuts on its constituents, and particularly on the most vulnerable members of Liverpool society. The burden of proof is now on the Council to explain the apparent contradiction between public statements and internal budget plans, and to show that its investment strategy serves the interests of the people and improves the city’s budgetary situation instead of siphoning surplus money into risky financial investments and contributing to the precarious situation of Liverpool welfare recipients.
On Friday, Liverpool Against the Cuts – a coalition of trade unionists, community and political campaigners – occupied the council chamber of Liverpool Town Hall, reclaiming it as the People’s Hall. The occupation lasted for around an hour, during which time they received visits from Mayor Joe Anderson and the Police. There were no arrests.
The group called for all anti-cuts groups, members of the public and workers affected by austerity measures, to take action to prevent the implementation of current and future cuts, and to demand that the UK government provide resources to underwrite all local services and threatened jobs. In a statement released from the occupation, the group said:
“The politicians are supposed to represent the people, but instead they represent the interests of the rich. By taking over what’s supposed to be our space, we’re declaring our intent to take back power in our communities.
Liverpool Against The Cuts doesn’t believe that the answer to the economic crisis is the misleading call for equality of sacrifice. Such a focus avoids the real cause behind the crisis – the actions of the super-rich – and avoids the real alternative – taking resources from those same super-rich. We therefore reject the idea that ‘there is no money’.
DON’T TAKE THE CUTS LYING DOWN! IF WE UNITE AND FIGHT WE CAN WIN!”
Liverpool Against the Cuts is a broad coalition established in July 2011 to campaign against all cuts across Liverpool. They hold monthly Organising Meetings at Unite the Union NW Office, Liverpool, where all activities for the month are agreed and prioritised.
This story is an update of one published yesterday titled “Liverpool Against the Cuts Occupy Town Hall”
January 18, 2013 6:30 pm
Occupied Times
