Council tax bills pass pounds 1,000 mark

Councillors in Liverpool yesterday agreed a 4.5 per cent increase in council tax, taking Band D bills above pounds 1,000 for the first time. Other moves to bridge a pounds 44m shortfall include cuts in services and contributions to voluntary and community groups, with school dinner charges up from 85p to pounds 1 a day.

The council's 24,000 employees will be asked to accept 140 voluntary redundancies, lose one day's pay, take a two per cent pay cut for six months and forego their annual pay rise. The cuts still leave a budget deficit of pounds 2.5m to be found in savings by the end of the month.