Steve Rotheram, Mayor of Liverpool City Region, has shared his insights on the upcoming Budget scheduled for October 30, 2024. The Labour mayor, who has held his position since 2017, employed a metaphor to describe his expectations for the financial plan.
"I think there's going to be a sort of spoonful of sugar along with the medicine."
Rotheram cautioned Rachel Reeves, the Chancellor, against implementing austerity-style cuts. This warning comes in the wake of recent political challenges for the Labour Party, including a significant number of backbenchers abstaining from a vote on winter fuel allowance changes and controversy surrounding gifts accepted by party leadership.
The mayor highlighted the potential for quick-delivery projects that align with manifesto commitments, specifically mentioning GB Energy. This £8.3 billion state-owned electricity company, proposed by Ed Miliband, the Energy Secretary, aims to create jobs and reduce dependence on foreign energy sources. However, Miliband has indicated it could take up to five years for the project to become profitable.
Rotheram emphasized the importance of considering the government's actions over a five-year period, rather than focusing solely on immediate measures. He also called for a "financial settlement" for his region, reflecting the ongoing debate about resource allocation across the UK.
Drawing from his experience as a former MP for Liverpool Walton, Rotheram offered advice to the newly elected Labour MPs who entered Parliament following the July 4, 2024 general election. He cautioned them about the potential pitfalls of Westminster life, urging vigilance in their personal and professional conduct.
The upcoming Budget presentation will be a crucial moment for the Labour government, as it navigates the complex economic landscape and attempts to balance its campaign promises with fiscal responsibility. As the fifth-largest metropolitan area in the UK, Liverpool and its surrounding region will be watching closely to see how the Budget addresses their specific needs and concerns.