The levelling up secretary has expanded the government’s intervention in Liverpool City Council by appointing a finance commissioner following concerns over the authority’s “stark situation”.
Michael Gove has appointed Stephen Hughes, former chief executive at Birmingham City Council, as finance commissioner at Liverpool. His role will involve overseeing the authority’s financial management and ensuring it sets a balanced budget.
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.”
The government’s further intervention comes after a report by commissioners in June revealed serious shortcomings in the authority’s financial management and senior leadership. It detailed particular concern over the council’s ability to close its cumulative budget gap of £98.2m.
In a letter to Mike Cunningham, Liverpool City Council’s lead commissioner, Gove stated: “My decisions reflect the stark situation in the council.
“The intervention is at a critical juncture as it approaches the halfway point. I am pleased that some progress has been made. However, it is clear significant challenges remain.”
The council faces substantial challenges in the next year, not least in agreeing a balanced budget, holding all out elections, and delivering a transformative improvement programme.
New powers for commissioners
Gove also announced that all five commissioners at Liverpool, including Hughes, will receive new powers over “all executive functions associated with finance and all non-executive powers over resourcing, governance and scrutiny of strategic decision making by the council”.
Cunningham said: “We welcome the secretary of state’s decision to expand the intervention, and warmly welcome Stephen Hughes’ appointment as finance commissioner, who joins the team at a critical point in the intervention.
“The council faces substantial challenges in the next year, not least in agreeing a balanced budget, holding all out elections, and delivering a transformative improvement programme.”
In June 2021, the government appointed four commissioners at Liverpool City Council to oversee the authority’s highways, property and regeneration functions.
In response to the further intervention, Joanne Anderson, Liverpool’s mayor, 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.”
Hughes is an accountant by profession and has previously worked at Brent Council as director of finance.
“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,” Anderson added.
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