Government to hand back some powers to Liverpool early but intervention set to extend beyond original June 2024 end date

The Government is to hand back some powers to Liverpool City Council before June 2024, after Commissioners expressed confidence in the leadership of the local authority.

In their fourth report on the progress of the intervention, which began in 2021, the Commissioners said the “cautious optimism” they had expressed in March 2023 had proved to be justified.

“The new leadership, at political and officer level, have shown the focus, energy and commitment needed for the organisation to improve,” the report said.

It noted that there had been significant changes at the council including the replacement of the interim chief executive and interim section 151 officer with permanent appointments. The Mayoral model of governance has also been abolished and a new leader of the council has been elected.

The Commissioners, led by Mike Cunningham, said there had been a “discernible, and welcome, change in approach” from the council’s leadership.

However, the report cautioned that while the direction of travel was positive, significant challenges remained.

“When we first came to the Council, we found the corporate core to be hollowed out, and many services to be drastically underperforming. LCC’s improvement journey started from a low base. Therefore, despite the substantial progress made to date, there is still much work to do before residents feel a tangible difference in the services the Council provides.”

The Commissioners have in particular raised concerns in a separate letter about the property management function at Liverpool, which they said “continues to underperform” and “does not yet have sufficient capacity and capability to deliver continuous improvement”.

As a result, the council has more to do to fulfil its Best Value obligations in this area of its responsibilities. The letter noted some recent appointments to the function but said a number of minimum requirements still needed to be met.

Overall, the Commissioners recommended that the following changes be made to the intervention:

a. A return of the powers of appointment at tiers 1-3. They recommended that they retain the power over the directors of property, HR/OD and statutory officers.

b. A return of finance powers to the Council in March 2024, with some continued oversight of improvements in financial processes beyond that date.

c. A return of Transport and Highways executive powers to the Council in March 2024.

These recommendations would be subject to continued progress from now until March.

The Commissioners said they expected significant parts of the intervention, as currently structured, to conclude in June 2024, but added that they also expected some form of government intervention to be required for a limited period post June 2024, which will most likely be on a statutory footing.

“There are a variety of models of intervention that could take place. However, it is our current view that any arrangements we recommend will be at a significantly reduced scope, Commissioner presence, and cost to the Council. We will work with the Council over the next six months to assess what the most appropriate arrangements are and to come to a recommendation.”

Commenting on the report, the Commissioners said: “We are pleased to report that the new leadership understand what needs to be done and are resolute about making the progress rightly expected from the people of Liverpool. The pace of improvement at the council over the last six months has been positive and is very encouraging.”

In the Government’s response to the fourth report, Minister for Local Government Simon Hoare said he welcomed the council’s progress and the Commissioners’ confidence in the new leadership team.

The Minister said: “Over the next phase of the intervention, it is imperative that the Council maintains a positive trajectory and ensure that they fill vacancies in important areas, such as property management. Also, to prioritise children’s social care services improvements and ensure that the right resources and corporate support is in place for improvements to be made at pace.”

Hoare added that Levelling Up Secretary Michael Gove was “minded to” change the scope of the intervention.

“First, we propose to reduce the scope of the intervention by returning certain Commissioner functions to the Council by March 2024, as part of a phased transition (in highways, strategic finance and appointments of non statutory officers). The Secretary of State is also minded to issue further Directions to the Council to support this proposed return of functions and to address issues raised in your report, including property and certain corporate functions such as risk management, culture change; lastly, he is proposing to revise outstanding Directions and revoke the 2021 and 2022 Directions, consolidating all active and outstanding Directions into a single set.”

Welcoming the Commissioners’ report, Council Leader, Cllr Liam Robinson, said: “I am confident that this report is a watershed moment and marks the beginning of the end of the intervention here in Liverpool.

“I am really pleased that the Commissioners have recognised the pace at which the new Cabinet are operating at, in conjunction with the Council Management team.

“I firmly believe we have delivered 12 months’ work in our first six months in office to get us to this point, and I want to pay tribute to all of the officers and councillors who have worked so hard to deliver improved services for our residents.”

Cllr Robinson added: “We are absolutely not complacent. We started from a very low base in some areas and there is much more to do, particularly in areas such as property management.

“However, when combined with the Futures’ Panel work around regenerating Liverpool, I believe we have every reason to be optimistic.”

The Commissioners’ next report will be published in March 2024, at which point the Commissioners will outline what will happen at the end of the intervention.

Philip Hoult