Liverpool: Government plans increased city council intervention

The government plans to increase its management of Liverpool City Council after expensive errors by the local authority, including over energy costs.

The council's failure to renew some of its contracts could lead to the loss of millions of pounds, a report revealed.

In 2021, the government appointed commissioners to oversee some functions after a local governance "breakdown".

It says it could now expand the "intervention", saying the council was "failing in its best value duty".

Earlier this year, it was revealed that the council's errors in renewing their energy supply contract could cost the city an extra £10m.

An investigation then found the authority failed to act on 12 contracts across various services - which had expired or were close to doing so - and therefore best value had been "compromised".

In a letter, Communities Secretary Greg Clark said there was "evidence of failure" in the council's financial management and a "lack of urgency to implement change".

He said he was "minded to appoint a commissioner to oversee the financial functions" of the council.

He added the existing team of commissioners would also be "given executive powers on recruitment" and "functions associated with governance and financial decision-making".

Mr Clark said he was also establishing a "strategic futures" advisory panel to "plan for Liverpool's revival as a city", which will be chaired by regional mayor Steve Rotheram.

The panel will also include former Leeds City Council leader Baroness Judith Blake and Sir Howard Bernstein, the former chief executive of Manchester City Council.

Mr Rotheram denied claims the panel would run the council, saying it would "advise and offer support in setting strategic longer-term plans and priorities".

"The UK is facing stark skills shortages, and it is 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."

She added the council had "lost £465m in funding since this government came to power in 2010, so it is not surprising that there are areas where we can improve performance".

Richard Kemp, the leader of Liverpool's Liberal Democrat group, said the appointment of commissioners meant unelected government officials were effectively taking control of the city's council.

He called for "a totally new lot of people" to oversee the authority, adding that "at the moment democracy is largely suspended in the city of Liverpool".