On 10 June 2021 the then Secretary of State for Housing, Communities and Local Government, my right hon. Friend the Member for Newark (Robert Jenrick), updated the House that he had appointed a team of four commissioners to Liverpool City Council. The commissioners’ responsibilities are set out in directions1 made under section 15(5) and (6) of the Local Government Act 1999 and include oversight of the council’s highways, regeneration and property management functions together with the associated audit and governance arrangements. The original best value investigation was initiated following a police investigation into allegations of fraud, bribery, corruption and misconduct in public office which involves a significant connection to Liverpool City Council. The wider criminal investigation into corruption is ongoing.
The commissioners submitted their first report to me on 5 October 2021 and I have discussed it with them. I was pleased to hear about the steps the council has taken to expose and stop wrongdoing. It is vital for Liverpool’s transformation that a clear line is drawn between the council of the past and the council of the future. The commissioners recognise the hard work, ambition, and determination of the Mayor and her cabinet, as well as the corporate leadership team. The commissioners have met dedicated and talented staff across the council who are working hard to deliver vital public services.
The commissioners have outlined to me, as they have stated clearly in their report, that the council is at the beginning of a long improvement journey and has a great deal to do in the next three years. In addition to the precise functions listed in the directions, the commissioners have encouraged the council to take a whole-council approach to improvement, with an expectation that the plans being developed will reflect this position. The commissioners are working with the council to develop their strategic improvement plan so they can focus on setting a sustainable long-term financial plan, improve corporate governance, deliver basic services well and meet the requirements of the statutory directions.
The commissioners shared with me their concerns about the council’s financial resilience and have outlined these in their report. I welcome the forthcoming review of the council’s financial resilience being conducted by the Chartered Institute of Public Finance and Accountancy (CIPFA) at the request of the commissioners. This review is expected to be completed before Christmas.
Given the circumstances of the intervention and legacy of the previous administration, it is not surprising that commissioners have found that the council’s approach to regeneration and property management lacks rigour and commercial awareness. I welcome commissioners working with these teams to embed strong commercial principles in these functions. Commissioners are also working with the planning team to address the lack of strategic policy frameworks and the significant backlog of planning applications which are constraining development in the city. It is likely to take another 12 to 18 months to fully stabilise the highways and transport functions in order to provide a firmer foundation for onward improvement.