Another strong hint has been made that further government intervention could be made at Liverpool City Council.
The troubled council is already operating under the supervision of four government commissioners, who were installed around a year ago following the damning Max Caller inspection report. Now, 12 months into that intervention, it is predicted that further action will be taken.
Earlier this week the ECHO reported on a leaked government memo that confirmed the four commissioners are not happy with the progress being made at the Cunard operation. The memo, a briefing for Secretary of State Michael Gove, warned that the council is going "backwards not forwards" in some areas and said "more action" will be required. The level of that action will be revealed in a commissioners report that is due to be published in the coming weeks.
READ MORE: Commissioners lament 'low point' for Liverpool Council as more contract failings emerge
There is speculation within the council that another commissioner could be sent to oversee more work carried out by the council. Some have suggested this could be a specific finance or processes figure because of the council's well documented expensive contract mistakes.
In a new report, published ahead of next week's council cabinet meeting, the commissioners have dropped another hint that further government intervention could be announced shortly. In the council's Strategic Improvement Plan, the commissioners state: "The Council continues to lack the capacity and capabilities to address the critical improvement plans – including the Finance Improvement Programme -and this is a fundamental problem." They add that their next report, which will be published in July, will give their "assessment of progress".
The council's own Strategic Improvement Report, authored by under-pressure chief executive, recognised that the local authority is not making the required progress in several areas. It states that there has not been a "sufficient pace of change" in the year since the commissioners arrived and notes the "inconsistent impact of the changes made".
The report adds: "It is disappointing that sufficient progress and impact has not been achieved in key areas where there have been clear imperatives for pace and change, such as procurement, property management and finance improvement."
The council has been rocked by further revelations of problems with contracts that could cost millions. This comes on the back of a £16m electricity deal disaster that is currently the subject of an independent investigation.
The latest problems, reported earlier this week by the ECHO, involved 12 contracts in need of immediate renewal that have either run out or are in danger of doing so. Renewing or extending the contracts could set the cash-strapped council back around £20 million.
The commissioners said the failure to extend these "high value" and "high impact" contracts marked a "low point" for Liverpool Council, according to the commissioners.
