Labour Council Budget Prioritises ‘Councillor Slush Fund’ Over Public Services, say Lib Dems

4 Mar 2026
Cllr Carl Cashman outside Liverpool Town Hall

Liverpool Liberal Democrats refuse to back Labour’s pay more, get less budget, branding a new £4 million unallocated fund a “political slush fund” designed by Labour to buy votes ahead of next year’s elections.

The City’s main opposition group tonight abstained from voting on Labour’s ‘Pay more, Get Less’ budget, which will see Council tax by the legal maximum for the fifth consecutive year. The Lib Dems argue that with frontline services in decline and the cost-of-living crisis biting, residents are being forced to bankroll Labour’s financial mismanagement and vanity projects.

Meanwhile, the Council is set to make £20 million in cuts, but Labour will vote to give their Councillors millions of pounds to spend on vanity projects, which in the past have seen the Council lose hundreds of millions in the past. 

On Council Tax, the Liberal Democrats argued that services have not improved enough to warrant another tax increase and that Labour is failing to deliver good value for money for residents. They argue that rather than wasting money on vanity projects, the administration should focus on getting the basics right, such as core services and preventing further overspends. 

They also called Labour's new pot for members’ priorities a political slush fund in an election year. The Lib Dems called for guarantees that the unallocated funding would be allocated fairly and impartially across the city, not just where Labour looked vulnerable at the polls. 

Cllr Carl Cashman, Leader of the Liverpool Liberal Democrats, said:

“When I’m out talking to residents, they tell me that they are confused that their council tax goes up each year but their services seem to get worse. It’s gone up by over £950 in six years.

“When families in this city are feeling the burden of the cost of living crisis, we have a Labour Council and Labour Government both indifferent to the struggle of thousands of ordinary people. So we won’t be backing yet another council tax increase, not whilst services are so poor. Residents should not pay more to get less.”

Liberal Democrat Shadow Cabinet Member for Finance, Cllr Andrew Makinson said:

“This budget is built on shoddy maths once again - Labour commits to millions in savings that they never met and so overspend across the balance sheet. There’s no accountability from their own back benches over the financial mess they are creating; they just nod it through. Like they will not throw this £4 million political slush fund at it in the run-up to the all-out elections next year. Will they share it fairly? Will they heck.”

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