The government intends to enhance its management of Liverpool City Council as a result of the local government’s costly mistakes, notably those concerning energy prices.

According to a report, the council’s failure to renew certain contracts could result in the loss of millions of pounds.

After a “breakdown” in local governance in 2021, the government appointed commissioners to handle certain duties.

It states that it could now widen the “intervention,” claiming that the council “failed in its duty to maximize value.”

It was discovered earlier this year that the council’s mistakes in renewing their energy supply contract might cost the city an additional £10 million.

An examination revealed that the authority failed to act on 12 contracts for various services that had expired or were near to expiring, resulting in “compromised” best value.

In a letter, Communities Secretary Greg Clark cited “evidence of failure” and “a lack of urgency to enact reform” in the council’s financial management.

He stated that he was “considering appointing a commissioner to oversee the council’s financial functions.”

In addition, the current team of commissioners will be granted “executive authority over recruiting” and “functions related to governance and budgetary decision-making,” he said.

‘Longer-term plans

Regional mayor Steve Rotheram will lead the “strategic futures” advisory body that will “prepare for Liverpool’s revival as a city,” according to Mr. Clark.

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

Mr. Rotheram refuted accusations that the panel would manage the council, stating that it would “advise and assist in establishing strategic long-term strategies and priorities.”

Joanna Anderson, the mayor of Liverpool, stated in a social media thread that “additional action will not cure the problems” at the city council because they are “widespread in local government.”

The United Kingdom faces severe skill shortages, and it is well-known that local authorities are struggling to improve capacity in crucial sectors, which forces us to rely on more expensive interim workers in the short term.

She noted that the council had “lost £465 million in funding since this administration took office in 2010, therefore it is not surprising that there are areas in which we can enhance performance.”

Richard Kemp, the head of the Liberal Democrat group in Liverpool, stated that the appointment of commissioners amounted to unelected government officials seizing control of the city council.

He demanded “a whole different group of individuals” to oversee the authority, adding that “democracy is suspended in Liverpool at the moment.”