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Question
As a Croydon MP, I am concerned about what this might mean for other councils. Can you give us more details on the measures taken by Government to ensure other local authorities are not following the same path as Liverpool City Council?
Minister reply
Chris Philp is correct in his concern. The government will work closely with political, business and cultural leaders across Merseyside and with Steve Rotheram, the Mayor of the Liverpool city region. We aim to support the city's recovery from the pandemic and give confidence to those who wish to invest in it.
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Question
Does this statement mean that ministers will have more control over local authorities across the country? Are there plans for further intervention?
Minister reply
The statement focuses specifically on Liverpool City Council. The Government recognises the important role of local authorities in delivering public services and believes that intervention should be a last resort.
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Question
Does this mean all councils will have to face similar scrutiny? How is it fair to single out Liverpool?
Minister reply
Local authorities are expected to meet their best value duty. While the situation in Liverpool is unique, the Government aims to protect the good name of local government and address issues that undermine public confidence.
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Question
What impact will this have on the residents of Liverpool? Are there any plans in place for community engagement?
Minister reply
The reforms aim to improve governance, restore public confidence, and protect taxpayers' money. The Government is committed to working with the city's leaders to support its economic recovery and attract new investment.
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Question
I am grateful for the Secretary of State's openness and his statement on Liverpool City Council. Labour accepts the report in full, supports the appointment of commissioners to advise elected representatives, and commits to an independent review led by a senior figure.
Minister reply
The hon. Member's remarks are welcomed, particularly those highlighting the need for accountability, transparency, and robust scrutiny at Liverpool City Council.
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Question
Welcomes steps taken to preserve local government’s good name and raises concerns about commercial activities of councils beyond traditional boundaries. Asks if external audit needs review.
Minister reply
My hon. Friend highlights an important point regarding complicated transactions beyond council norms, and the Government has provided guidance through reforms and reports like Sir Tony Redmond's to improve handling of such situations.
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Question
Accepts Secretary of State’s response as proportionate; asks how monitoring against set requirements will be conducted, how Parliament will be updated, and offers committee's assistance.
Minister reply
Monitoring by the commissioners would occur every six months with reports to the House. The newly elected Mayor is expected to produce an improvement plan guided by appointed commissioners.
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Question
Praises Max Caller's work in Northamptonshire and asks if Liverpool City Council can also be transformed given positive responses from councillors and officers.
Minister reply
My hon. Friend raises a valid point, referencing successful interventions in the past. Commissioners will support Liverpool’s elected leadership to restore public confidence and deliver effective services.
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Question
I will read the report in full today when I receive it. Will the Secretary of State assure my great city and its people that this crucial work, on which so many of our constituents rely, will continue and that these vital services will be both resourced and protected?
Minister reply
I thank the hon. Gentleman for his remarks. The Government want to ensure Liverpool City Council continues to have resources and redouble their efforts to support the city through a potentially difficult period. The Cabinet and ministerial colleagues will convene in coming days to reiterate this message.
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Question
Does my right hon. Friend agree that it shows the Labour party has its priorities wrong, as Liverpool City Council failed during the pandemic?
Minister reply
All councils have a fundamental duty to provide good value for money. The decision to intervene in Liverpool was due to persuasive evidence of falling below this standard.
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Question
Will the Secretary of State reassure my wonderful city that commissioners will be totally independent and focused on working in the interests of the people of Liverpool?
Minister reply
The commissioners will be appointed by me to support the city and its elected leadership, ensuring a credible improvement plan is brought forward as quickly as possible.
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Question
Does this action not send a firm indication to all councils that we will step in where irregularities over best value occur? Will my right hon. Friend comment on his remarks about the need for whole-council elections?
Minister reply
The report recommends moving as swiftly as possible to whole-council elections and single-member wards, which has wider application to rid ourselves of councils that go for elections every year.
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Question
Can the Secretary of State confirm the timetable for the proposed intervention by commissioners? Will that be reviewed and monitored?
Minister reply
The council has until 24 May to revert with comments and representations. Once those are made, I will consider them carefully and decide whether to proceed or change the proposal.
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Mike Wood
Con
Kingswinford and South Staffordshire
Question
Does he think that Liverpool city councillors have been unable to do their job due to lack of powers, capacity, or capability?
Minister reply
The report concludes the council needs to raise its game substantially in respect of some officers and elected members; greater scrutiny and accountability are needed.
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Question
Will he take further action to allay fears that my constituents have about their own local authority, and will he meet me to discuss better scrutiny arrangements?
Minister reply
I would be happy to meet my hon. Friend to discuss concerns about his council and give further reassurance to constituents.
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Question
Concerned about the impact of sending commissioners to Liverpool, questioning if it amounts to a Whitehall takeover and asking for assurances on respecting constituents' democratic rights.
Minister reply
Emphasises that elections will proceed in May; elected Mayor and councillors can make representations. Commissioners aim to support not dictate.
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Question
Asks if the abandonment of the Standards Board was a mistake, considering today’s statement.
Minister reply
Reflects on work by the Committee on Standards in Public Life, aims to ensure ethical standards regardless of who is at stake.
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Question
Asks if an entirely new culture needs embedding in Liverpool City Council beyond financial improvements.
Minister reply
Agrees with the need for major cultural change as outlined by Mr Caller; essential to restore confidence in the council.
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Question
Asks if today’s announcement is an exception rather than norm, reassuring those wishing to serve their communities.
Minister reply
Confirms this intervention is rare; done with a heavy heart for Liverpool's benefit.
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Question
Concerned about potential costs of commissioners on Liverpool council tax payers.
Minister reply
Costs will be borne by Liverpool City Council; expected to save taxpayers money through improved management.
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Question
Welcomes recognition of good work being done in the council, asks about investigation into Merseytravel facilities.
Minister reply
Investigation by Mr Caller did not cover broader transport network; only highways function was examined.
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Question
Asks for support of the report and intervention, questions if issue stems from elected Mayor.
Minister reply
Acknowledges concentration of power with elected Mayor; hopes accountability will improve.
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Question
Questions about protecting Liverpool council taxpayers' money and services, suggests a shorter intervention period if progress is swift.
Minister reply
Intervention for max 3 years; can be reviewed on a six-monthly basis depending on progress.
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Question
The report concludes that the cycle of elections in Liverpool reduces scrutiny and inhibits long-term focus. Of course this problem is not just unique to Liverpool. For example, Calderdale, where I was formerly a councillor, is one of the handful of local authorities still yet to approve a local development plan, 10 years into the process. The Labour administration there kicks the can down the road from year to year because it elects in thirds. To help avoid the issues in Liverpool being replicated elsewhere, would the Secretary of State support a review of the current electoral cycle in metropolitan borough councils?
Minister reply
I will give further thought to my hon. Friend’s suggestion, but I agree that it would be better for councils to move to all-out elections, and—unless there are exceptional reasons to the contrary—it would be better if councillors were elected in single-member wards. Max Caller’s report clearly makes that recommendation for Liverpool, and he had made that recommendation in the past, having witnessed dysfunctional councils with poor scrutiny and accountability in other parts of the country. It seems to be a thread running through those councils that have got into extreme difficulties. That is something we should reflect on, and I will refer to it in due course.