Whitehall will run troubled Liverpool City Council following a series of damning reports and scandals after an inspection warned of ‘dysfunctional culture’ and called for ‘urgent reform’
- Government will take over all financial, governance and recruitment powers
- Comes after inspectors uncovered bullying and avoidance of rules in the council
- Up to £100 million of public money was squandered due to ‘dubious contracts’
- Five men, including ex-mayor Joe Anderson were arrested by police officers
Ministers are to take effective full control of Liverpool City Council following a series of damning reports and scandals.
The Government will take over all financial, governance and recruitment powers. The troubled Labour-led council has already lost power over roads, planning, property and regeneration for three years, with control given to Government-appointed commissioners.
It came after inspectors uncovered bullying, avoidance of rules and up to £100million of public money being squandered as a result of ‘dubious contracts’ and poor record-keeping.
Police are investigating alleged bribery, fraud, corruption and witness intimidation. Five men were arrested, including Liverpool’s ex-mayor Joe Anderson and prominent Left-winger Derek Hatton. They deny wrongdoing.
Police are investigating alleged bribery, fraud, corruption and witness intimidation. Five men were arrested, including Liverpool’s ex-mayor Joe Anderson, pictured, and prominent Left-winger Derek Hatton. They deny wrongdoing
A inspection last year found that a ‘dysfunctional culture’ saw up to £100m of public money squandered as a result of ‘dubious contracts’ and poor record-keeping The latest report, published yesterday, warned the authority faces a ‘stark’ financial future.
It said poor performance in the areas of procurement, finance and auditing are limiting the ‘council’s ability to operate at a crucial time’ and called for ‘urgent reform’.
Levelling Up Secretary Greg Clark said he was ‘minded to’ expand intervention with a fifth commissioner appointed to deal with finance. He also revealed plans for a new strategic panel to work with the council chaired by Liverpool City Region Mayor Steve Rotheram.
The move amounts to an effective full-scale takeover of the authority with Whitehall set to give itself all major powers over how money is spent and who is hired and fired within the administration.
It comes after an error saw the council’s energy bill increase by £10m. The fallout led to the resignations of chief executive Tony Reeves and his deputy and finance director Mel Creighton.
Mistakes and miscommunication left the Labour-led council on a more expensive tariff.
Mayor of the City of Liverpool, Joanne Anderson, was critical of some of the recommendations and the plan for further intervention.
The fallout after the council’s energy bill accidentally rose by £10m led to the resignation of chief executive Tony Reeves, pictured
In a lengthy Twitter post, she warned: ‘Further government intervention will not solve the issues facing Liverpool City Council – these are common issues being experienced right across local government.
‘Therefore, I accept the problems, but I question the solution.
‘Whilst I recognise that there are gaps in our workforce capacity and capability, this is not unique to Liverpool.
‘The UK is facing stark skills shortages, and it widely known that local councils are struggling to improve capacity in key areas, which is making us dependent on interim staff that cost more in the short-term.’
Steve Rotheram, pictured, the new metro mayor of Liverpool, will chair the Liverpool Strategic Futures Advisory Panel
The Liverpool Strategic Futures Advisory Panel, chaired by Mr Rotheram, will also include Baroness Blake, the former leader of Leeds City Council, as well as Sir Howard Bernstein, the former chief executive of Manchester City Council who has also worked as an adviser to the Abu Dhabi owners of Manchester City football club.
Mr Rotheram denied any suggestions that the panel had been created to run the council.
He was responding to criticism from Richard Kemp, the leader of the Liberal Democrat group on the council, who said that the panel would ‘take over control’.
Mr Rotheram told the BBC that Liverpool ‘shouldn’t be in a position where commissioners are sitting over the shoulders of the directly-elected representatives’.
He added: ‘There is a real opportunity for us to pull together some expertise, some fresh perspectives of what is happening in Liverpool and to look to the future.’
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