§ Mr. Parryasked the Secretary of State for the Environment if he will make a statement on his recent meeting with the Liverpool council leaders.
§ Mr. Patrick JenkinAt a meeting yesterday with Liverpool city councillors, trade unionists and Members of Parliament I welcomed the willingness shown by the city council to move towards making a properly balanced budget and rate. We all recognise the appalling consequences that would flow for the people of Liverpool and council staff if this was not achieved.
The councillors made a number of suggestions as to how such a balanced budget should be approached. I made it clear that I am in no position to vary the rate support grant settlement, that I am constrained by the national rules governing other grants and expenditure and that I also have a duty to safeguard the interests of all other authorities, some with equally pressing problems.
I made it very clear that anything the Government might do could have no more than a marginal impact on the council's rate and budget for this year. Nevertheless, we agreed that our officials should, as a matter of urgency, discuss with officers of the council and report back swiftly on the possibilities of resolving the city's problem on the basis of a balanced budget.