“Weak leadership” that was ‘wholly unacceptable’ forced the Conservative government to send in commissioners to Liverpool Council according to a senior minister.
Michael Gove MP, Secretary of State for Housing, Levelling Up and Communities, told delegates at the Local Government Association (LGA) Conference in Harrogate, that the government had to take action when councils “do fall short”. Citing Liverpool as a “high profile instance”, Mr Gove said the widely documented failings at the Town Hall prompted a response from Whitehall.
Referencing Liverpool alongside Slough, Mr Gove said: “In both there’s the common thread of weak leadership. I’m sure, like me, you find these failings wholly unacceptable.
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“It’s not just the case that the people of Liverpool and Slough deserve better, it’s also the case that local services matter.” Mr Gove’s comments to the local government conference come ahead of the impending update from commissioners that is expected to lead to further action at the Town Hall.
A year on from the damning Caller Report, it was revealed last month in a briefing note to Mr Gove that the council is going "backwards not forwards" in some areas. Pressure continues to mount on the local authority as more and more issues emerge around its handling of contracts.
Following the expensive revelation that a series of calamitous mistakes will lead Liverpool's electricity bill soaring by £16 million, under fire chief executive Tony Reeves said the council had “nowhere to hide” as it attempts to rectify the “embedded practice” that led to multiple contract failings.
Mr Reeves told a cabinet meeting on Friday the only way for the troubled authority to turn its fortunes around was to “bring these things out into the open”. The handling of contracts and lack of central log of agreements was a source of consternation for lead commissioner Mike Cunningham, who is said to have told a meeting of the finance and resources select committee, that further failings were “conceivable, if not likely.”
Mr Cunningham’s team said the failure to renew more than a dozen contracts on time marked a “low point” for the council. After the energy debacle came to light, it was confirmed Mel Creighton, director of finance and deputy chief executive, would leave her role after three-and-a-half years.
It is understood she will continue to be paid until the end of August. The authority is creating two new roles at the heart of its procurement and finance briefs to replace Ms Creighton and improve the management of its contracts.
A report to its appointments and disciplinary panel outlined how the position of chief procurement officer is to be set up, earning up to £101,000 a year. The post of Strategic Director of Finance and Resources taking home up to £150,000 annually is also being established after consultation with the commissioners.
Mr Gove also told the conference he is due to meet with Liverpool City Region Metro Mayor Steve Rotheram for a tour of the six boroughs next month. It is expected Mr Rotheram will take the MP for Surrey Heath to Knowsley to highlight the impact of it receiving £0 per head under the government’s levelling up plan.
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