Government acknowledges progress at city council but warns of potential “slippage” in some areas
The Local Government Minister has welcomed continued progress at Liverpool City Council, while also raising concerns about the "risk of slippage" in challenging legacy areas including property, procurement, and housing.
Jim McMahon's letter came in response to a progress report that was issued after Government intervention was scaled-back in May 2024.
The letter was sent in December but only published by the Ministry of Housing, Communities and Local Government this week.
In May of last year, the then-Government chose to reduce the level of intervention at the city council after a fifth report from commissioners detailed "significant improvements".
Commissioners had been sent in to the local authority in June 2021 and given powers over Property, Regeneration, Highways and their associated governance.
The Government later handed the team further powers over the financial functions and control of senior appointments.
By March 2024, improvements meant the council had been handed back control over Finance, Highways and Transport, and most senior appointments.
Then in May 2024, the Government chose to move the intervention from a commissioner-led model to a statutory Assurance and Improvement Board.
Writing in the letter, dated 19 December, McMahon said: "When the Commissioners’ appointments ended and the Council established the Board, I was encouraged by the overall improvements within the Council, particularly over the previous eighteen months, and by the commitment that you and your Leadership teams demonstrated to continuing to drive the reforms.
"The updates you have shared alongside the CPC [Corporate Peer Challenge] findings assure me that progress continues to be made and that you have continued to demonstrate a strong and stable leadership both within the Members of the Council and the officer team."
"However, as you note, there is still significant work to do before the residents of Liverpool see and feel the positive and tangible outcomes," he added.
McMahon noted that the progress updates have highlighted “some challenging legacy areas for the council, particularly in relation to property, procurement, and housing, which have experienced progress at a slower pace”.
He added: "I am concerned that there is a risk of slippage in these more challenging areas and I know you appreciate it is crucial to continue a focus on tackling these issues with urgency and commitment."
McMahon said he wished to keep an open line of communication with the council, including through an official continuing as an observer on the council's Assurance and Improvement Board.
He also accepted an offer from the council of a further report on progress, asking that it be handed to the Government by early March 2025.
McMahon continued: "I note that the Board is currently due to conclude in March 2025 and that plans are being developed for post-March.
"I understand this is likely to be a combination of an enhanced role for the Cabinet and Council, as well as external support.
"I strongly support these ambitions, as I believe that strong external support and challenge is as important as internal governance and scrutiny in helping sustain long-term improvement.”
Adam Carey
