The government is to take over all financial, governance and recruitment powers from troubled Liverpool City Council, the ECHO can exclusively reveal.
Levelling Up Secretary Greg Clark has confirmed the government intervention at the council will be significantly expanded to the point of an effective full-scale takeover. He also revealed plans for a new strategic panel to work with the council on its future plans, which will be chaired by Liverpool City Region Mayor Steve Rotheram.
Today a second report from a team of government commissioners - installed to oversee the council's Property, Regeneration and Highways departments last summer after a damning government inspection - will be published. Mr Clark said the report reveals "serious shortcomings" remain at the city council, particularly around financial management and senior leadership. The report also criticises the slow progress made in making improvements at the Cunard administration.
READ MORE: Students heading to Oxford and Cambridge after incredible A-level results
The council has continued to struggle since the revelations of last year's explosive Max Caller inspection report. A recent energy bill disaster saw millions of pounds added to the city's electricity bill and both finance director Mel Creighton and chief executive Tony Reeves have quit in recent months.
Having considered the latest commissioners report, the Secretary of State has announced that he is minded to now appoint another commissioner to oversee the authority's financial management and to transfer the council's governance and financial-decision making to the commissioners along with powers over recruitment.
This will be seen as an effective full-scale government takeover of the city council, with Whitehall set to give itself all major powers over how money is spent, how the city is run and who is hired and fired within the administration.
As well as this significantly expanded intervention, Mr Clark has announced the formation of a strategic advisory panel that he hopes will develop a long-term plan to guide Liverpool City Council out of the current government intervention and help shape the future of the city.
The Liverpool Strategic Futures Advisory Panel will work closely with the City Mayor Joanne Anderson and her cabinet, and also with the commissioners on long-term strategy and decisions over the future of the city, beyond the current intervention. The panel will have a particular focus on driving growth in skills, jobs and opportunities for the city.
The Panel will be chaired by Steve Rotheram, Metro Mayor of Liverpool City Region. He will be joined by two major figures from local government, Sir Howard Bernstein, who was chief executive of Manchester City Council from 1999 to 2017, and Baroness Judith Blake, the leader of Leeds City Council from 2015 to 2021. The Panel will be asked to nominate an experienced business leader to join them.
Levelling Up Secretary Greg Clark said: “I am determined to help do everything I can to help Liverpool come out of the current intervention stronger and able to achieve its ambitions.
“The commissioners’ report shows that there are still serious shortcomings that need to be sorted out, especially in financial management. But I want this to be a turning point at which the city of Liverpool can see a bright future that lives up to the power this great city embodies.
“So following talks I had in person in Liverpool with Mayor Joanne Anderson and Mayor Steve Rotheram in recent weeks, I am appointing a new panel, chaired by that same Mayor Rotheram and supported by some of the wisest, and most experienced people in city leadership, to lead this transition from current interventions to a successful future.”
Lead Commissioner Mike Cunningham QPM CBE said: “Our report outlines the challenges the council has faced over the past year in their improvement journey, and highlights some of the areas that need urgent improvement. We welcome the Secretary of State’s decision to expand the directions, and the creation of the Strategic Futures Panel. We have confidence that the council can now address these challenges.”
Steve Rotheram, Mayor of the Liverpool City Region, who will chair the new panel, said: "Since I was elected Mayor of the Liverpool City Region, my number one priority has been working to build a stronger, fairer and better future for our whole area. At times, that has meant I’ve had to make decisions, not because they were easy but because they were the right thing to do.
“The Caller Report was a watershed moment for Liverpool. Everyone recognised that there was an enormous job of work to do to get the council back where it belongs. The Commissioners’ Report is clear that they do not believe there has been as much progress as they would have hoped to see since they were appointed. That’s not a criticism of any individual or group of people – but a recognition that the council might benefit from a different approach.
“The Liverpool Strategic Futures Panel has been set up to help chart the city’s path to stability and prosperity. We aren’t being asked to take control of the council or the running of its day-to-day activities, but we will be working with the commissioners and the council itself to develop a long-term plan for success.
“Crucially, this means that it we will be setting the strategic plans and priorities for our area locally – not in Whitehall or Westminster.
“For the city region to reach its full potential we need a strong and thriving Liverpool. Our city is central to the success of the wider region. The Combined Authority will continue to work for the benefit of the whole Liverpool City Region and the 1.6m people who call it home."
Liverpool City Council and other interested parties will have until September 2 to provide representations on these proposed intervention measures. The full commissioners report is expected to be published later today.
READ NEXT
Arriva bus strikes suspended as payment agreement is reached
Man dies after being pulled from the water in New Brighton
