Government in full scale takeover of Liverpool City Council

The government is going to effectively fully take over the running of Liverpool City council.

Commissioners were brought in to oversee specific departments last summer after a damning inspection.

The government initially intervened in the running of the Property, Regeneration and Highways departments, but now we're told that's going to expand to cover all financial, governance and recruitment powers.

The report says the financial situation Liverpool City Council faces is 'stark' with an estimated budget gap of £98.2 million over the next four years.

A new strategic panel's also being set up which will be chaired by Metro Mayor Steve Rotheram.

A breakdown of the latest report on the Government's official website reads :

"In their second report, commissioners describe the challenges being faced in Liverpool City Council and highlight further instances of best value failure. Commissioners specify that the council is failing in its financial management, that there is a lack of capacity and capability at senior levels, and that there is a lack of urgency to bring about necessary changes. They recommend that they require further powers to affect the necessary changes within the council and recommend the appointment of an additional Finance Commissioner.

In response the Secretary of State expressed his concern regarding the commissioners findings and that he is minded to expand the Directions of the intervention to ensure issues within the council could be resolved. The Secretary of State highlighted that officials had written to the council inviting them to make representations upon the expanded. The Secretary of State also announced the intention to form the Liverpool Strategic Futures Panel."

Responding to the publication of the commissioners’ report, Mayor of Liverpool, Joanne Anderson, said:

"Let me thank the commissioners for their work in helping to drive forward improvements to the issues raised in Max Caller’s report into failings at the council several years ago. As Mayor, I have been clear that we will work with the commissioners to steady the ship and put in place measures that will prevent any further scandals and public controversy.

"However, I am concerned about some of the recommendations in their report. Specifically, their call for further intervention which I fear dilutes the core purpose of the intervention.

"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. Under government intervention, Liverpool City Council faces an additional barrier in recruiting talent as people assume that they will have no freedom to manage or work creatively here.

"Liverpool City Council, like all big councils, has been massively impacted by years of government cuts. We have lost £465 million in funding since this government came to power in 2010, so it is not surprising that there are areas where we can improve performance. By next March, the commissioners’ intervention will have cost us £6.7 million, which is money that could be better spent on transforming our services.

"I have held discussions with the Secretary of State in recent weeks to raise my concerns on the intervention and to try and find a resolution. I thank the Secretary of State for listening and working with me on this matter.

"I now welcome the Liverpool Strategic Futures Panel, which will be chaired by the City Region’s Metro Mayor, ensuring that Liverpool’s future remains in Liverpool’s hands. The panel brings together local government experts with national experience who really understand the problems we are facing, and, most importantly, people who live, work in, and understand our city, adding a layer of local transparency to our improvement journey.

"I expect to see marked improvements by the commissioners’ next report, otherwise we will have to accept that the model is counterproductive to what we are striving for.

"However, I do feel hopeful. The commissioners’ report was written nearly three months ago, and we have already seen improvements in many areas since then, as well as appointing a new interim chief executive who has an impressive track record of delivery.

"Like any organisation, we need stability and patience whilst we embed the positive changes that have already been made.

"We care immensely for our city and its people, and we are determined to get this right."

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