Damning commissioners’ report finds further failure at Liverpool City Council

Liverpool Town Hall

Government commissioners running certain parts of Liverpool City Council say they have uncovered further evidence of best value failure at the authority and are recommending an extension of their powers, although not to the timeframe they will spend at the council.

They were were appointed by Local Government Secretary Robert Jenrick last June following a damning report into the Labour-controlled authority by government inspector Max Caller.

This is the commissioners’ second report into the running of the council, and it highlights “systemic and whole-council failure” as well as an estimated budget gap of £98.2m over the next four years.

Following the report’s publication Secretary of State, Greg Clark, said: “This is a troubling and unsettling time for both the council and the residents of Liverpool.”

City Council chief executive, Tony Reeves, tendered his immediate resignation on July 18, ahead of the publication of the commissioners’ latest report. His interim successor, Theresa Grant, was appointed today (August 19).

The commissioners’ concerns include:

  • The council’s financial situation
  • Gaps in workforce capacity and capability
  • Decision making
  • Risk management
  • Managerial leadership

They are recommending:

  • Appointing a commissioner with finance expertise
  • Commissioner approval for senior appointments
  • Commissioners to have a role in the performance appraisal for chief executive and staff who report to them

They have set out priorities for the organisation for the immediate future:

  • Putting in place a fully costed plan for restructuring (within nine months)
  • Develop a workforce plan (within six months)
  • Design and embed a new audit model (within 12 months)

Since June this year, changes at the authority include the introduction of a thorough and robust approach to monitoring and managing procurement and contracts.

The council said it is also on track to put in place robust plans to drastically improve income collection.

There is also increased capacity and expertise appointed in finance and property which is already delivering increased pace and improvement, addressing key areas raised in the commissioners’ report.

It claims progress is being made on the recommendations on workforce plans, the restructure and culture change, saying it is committed to being an employer where everyone can thrive, feel confident and valued.

It is also responding to the customer complaints review which will see improved response times and issues resolved quicker.

Secretary of State for the Department of Levelling Up, Housing & Communities, Greg Clark, today announced the setting up of a Liverpool Strategic Futures Panel, to guide the city’s improvements, chaired by Liverpool City Region Mayor Steve Rotheram and supported by political and business leaders, including former Manchester City Council chief executive, Sir Howard Bernstein.

Mr Clark thanked the commissioners for their report in a letter today, and said: “I am greatly concerned to learn you have found further evidence of best value failure at Liverpool City Council.

“You have been clear about the depth of this systemic and whole-council failure and that immediate action is required.

“I am particularly concerned with the council’s financial situation and the estimated budget gap of £98.2m over the next four years; the structural weaknesses in the system that supports the management of public money, as the recent energy contract issue has shown; and the council’s approach to risk management. I would like to see rapid improvement in all these areas.”

He added: “Your account of opaque governance and decision-making processes is also of great concern and I note the associated risk for the procurement function with the absence and now resignation of the director of finance and resources and lack of cabinet member for finance.”

He wrote: “This is a troubling and unsettling time for both the council and the residents of Liverpool, but I am determined that today should be a turning point so that the city can count on the bright future that it deserves and is capable of achieving.”

Liverpool Mayor, Joanne Anderson, said: “Naturally, I am extremely disappointed with today’s report.

“A huge amount of work has been taking place over the last 12 months to change the systems, processes and culture of the organisation.

“It is not an overnight fix, and the report is no reflection on the hard work and teams and individuals across the organisation.”

She added: “This report dates from June, and since then there has been further progress, particularly around the management of, and commissioning of, contracts. This is a complex and challenging journey, and there will be bumps in the road along the way.

“The cabinet and I, along with the senior management team, are determined to turn this organisation around and deliver best value and social value for our residents.”

She welcomed the appointment of the Liverpool Strategic Futures Panel, saying: “The panel brings together local government experts with national experience who really understand the problems we are facing, and, most importantly, people who live, work in, and understand our city, adding a layer of local transparency to our improvement journey.”

ReSet Liverpool said the “effective takeover” of the council by the commissioners is “humiliating for the council and for our city”.

The non-party campaign, co-founded by former Liverpool Mayoral independent candidates Stephen Yip and Liam Fogarty, is demanding root-and-branch reform of the city council.

Stephen Yip said: “Liverpool City Council has finally run out of second chances. Handing over the day-to-day running of a major English city to commissioners in this way is unprecedented. No spin or gloss from the Mayor’s office or the controlling Labour group can disguise their utter failure to address deep-rooted problems in the city and the rotten culture inside the council.”

Co-founder Liam Fogarty urged the new Strategic Futures Advisory panel to engage with all the people of Liverpool to map out a vision for the city. He said: “Liverpool isn’t just badly run. It’s a city without a plan.

“The panel unveiled by the Minister includes senior figures from local government. But it’s vital they listen to the people of Liverpool themselves, and not just from the discredited politicians and officials who’ve brought disgrace on our city.”

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