Liverpool Council’s “well known” problems should be left to its own staff to manage according to the city’s Mayor, who has questioned the need for further intervention for a second time.
In the aftermath of the announcement of further government intervention in Liverpool last week, Mayor Joanne Anderson has said should the Whitehall-appointed commissioners overseeing the city not be able to report on “measurable improvements” by their third report in December, it will represent a failure of the intervention model. In a lengthy second statement following last week’s report, Mayor Anderson said the “sheer presence of commissioners” was impacting the local authority’s workforce and overall culture.
It was revealed on Friday that the government is to take over all financial, governance and recruitment powers from troubled Liverpool Council. That announcement came ahead of an excoriating second report from commissioners installed at the Cunard Building who identified a litany of failures at the council, around its handling of public money and leadership in particular.
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Mayor Anderson said when she took on her role last May, she acknowledged the challenge at hand would never be a “quick fix for tackling deep-rooted, historical problems in the council” and her commitment to working with the commissioners has been “unwavering”. She said: “However, following the publication of their second report, I have concerns over the model of intervention and its pace of progress.
“Although the Commissioners acknowledge the council has achieved some important tactical milestones through the hard work of officers and councillors alike, they are recommending further intervention. I question the rationale for this level of input and fear that this is undermining the core purpose of the intervention.”
Mayor Anderson, who was previously a councillor for Princes Park ward, said many of the problems faced by the local authority “are well known, clearly understood and should be left to our staff to manage.” She added that progress has been hampered by the council’s lack of staff and changing this was her number one concern.
She said: “We are most definitely unable to deliver on our improvement journey without the staff to do it. However, this is not unique to Liverpool City Council.
“It is widely known that the UK is facing a stark skills shortage and there is a scarcity of qualified, senior staff across local government. We will not be able to deliver on the recommendations unless we have the staff to deliver them – in the context of nationally recognised difficulties, that feels like we are being set up to fail.
“Since the government intervention, we have lost several respected senior officers, causing morale to plummet among staff. This has resulted in a worrying number of interim appointments.
Our interim officers are valued members of the organisation, however ‘interim’ only represents further uncertainty and is simply an unsustainable business model. They also cost the council significantly more than a permanent appointment would.”
The Labour Mayor also criticised the decision by the team, led by lead commissioner Mike Cunningham, to bring in a fifth commissioner with a responsibility for finance. She said the priority should have been to recruit a “talented director” rather than an additional government officer.
Mayor Anderson said: “The council has a huge amount of dedicated, professional, and diligent staff who care deeply about the service they provide and are committed to helping steer our improvement journey. However, the sheer presence of commissioners has an impact on our workforce and overall culture.
“The longer the intervention lasts, the more difficult it is to retain and recruit much-needed talent, as staff feel constrained by the rigorous levels of oversight. Like any efficient organisation, our staff need freedom to work.”
As part of the government’s increased oversight into Liverpool, a strategic futures panel has been established, to be chaired by Metro Mayor Steve Rotheram. The Liverpool Strategic Futures Advisory Panel will work with Mayor Anderson and her cabinet, 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. Mr Rotheram will be joined 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.
On the panel, Mayor Anderson said: “I reached out to the Secretary of State some weeks ago to express my concerns and to find a solution. I thank Greg Clark for listening to me and for acting, through the development of the Liverpool Strategic Futures Panel.
“The panel, chaired by the City Region’s Metro Mayor, ensures that Liverpool’s future remains in Liverpool’s hands, instead of Whitehall or Westminster’s. Crucially, it adds a layer of local transparency to our improvement journey. Local people, making local decisions.”
Amid the publication of the report on Friday, the council also announced the appointment of a new interim chief executive, Theresa Grant OBE. The former Northamptonshire County Council boss will take up the role in September.
Ms Grant was in post when that council was also going through government intervention, something Mayor Anderson was heartened by. She said: “She radically transformed the organisation, making it financially sustainable, whilst delivering significant improvements.
“Her experience will bring fresh energy, positivity and a relentless focus on the challenges that lie ahead, so we become the council, the city and our residents deserve.” The Labour group leader said the council needed time to embed the changes needed to improve the fortunes at the Cunard Building and said should the third commissioner report not highlight “measurable improvements” in December - the halfway point of the intervention - “we will have to acknowledge that the intervention model is counterproductive to what we are trying to achieve, creating more problems instead of solving them.”
She added: “Our improvement journey has been met with bumps in the road – this was anticipated in the original best value report. However, I would like to reassure our residents and stakeholders that we will continue to build upon the positive outcomes we have delivered for the city.
“I know we will continue to prioritise the best for the people of Liverpool. We care immensely for our city and its people, and we are determined to get this right.”
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