New commissioner brought in to manage Liverpool Council’s budget

A fifth government commissioner has been brought into Liverpool City Council to oversee the authority’s budget.

Stephen Hughes, the former Chief Executive of Birmingham City Council, will be joining four other commissioners and will be taking the role as Commissioner of Finance.

Liverpool City Council has been seeking to improve its management since 2021, when the government said there had been a ‘serious breakdown of governance’ and appointed the commissioners.  

The group will now have the power to evaluate plans from the council’s chief executive, as well as manage staff appointments and dismissals.

Mayor Joanne Anderson said: ‘Stephen Hughes is an experienced local government leader. His appointment comes at a time of great challenge for us as we prepare to set out our 2023/2024 budget proposals. His experience will be helpful at this time.

‘It is worth noting that the Lead Commissioner, Mike Cunningham, has recognised that we are continuing to improve as an organisation and that there is a huge amount of work ongoing to change systems, processes and our culture.

‘The additional intervention is no reflection on the hard work of teams and individuals across the organisation who are delivering improvements and making a positive difference to the lives of residents.’

The commissioners released a second report on the council in June acknowledging that improvements had been made, but further intervention was needed.

This was partly due to the failure to renew contracts for local services, resulting in increased costs and disruption.

But Liverpool City Council says this was written before more recent improvements and changes, including the appointment of interim Chief Executive Theresa Grant OBE.

Mayor Anderson recently released a statement to Liverpool ECHO explaining how the council will be forced to make cuts of around £73 million next year, as it suffers with a budget crisis.

Levelling Up Secretary Michael Gove said: ‘I am committed to helping Liverpool City Council come out of this intervention as a stronger organisation and that is why I am taking further steps to put the Council on a firmer footing.

‘Liverpool is a city of fantastic potential and under the guidance of the new Finance Commissioner I am confident they will be able to rebuild trust with those they serve and deliver for the taxpayer.’

In August a strategic advisory panel was set up to guide Liverpool City Council out of government intervention.

Photo by Laurie Byrne