Updates on statutory interventions at Liverpool, Sandwell and Thurrock councils have been presented in parliament.
In a written statement, Simon Hoare, minister for local government, also offered an update on the situation at Tees Valley Combined Authority, which was subject of an independent review following allegations of potential corruption and illegality.
At Liverpool City Council, Hoare confirmed that the scope of government intervention – which began in 2021 – would change, with certain functions handed back to the authority, including section 151 responsibilities. Directions have been updated as part of a “planned and phased transition” towards the end of the intervention.
The council must, though, allow commissioners to provide advice and challenge on strategic decisions related to its finance function, including the setting of annual budgets and medium term financial strategy.
At Sandwell Metropolitan Borough Council, Hoare confirmed that intervention would end on 22 March, as planned.
A fourth and final commissioners report noted that the council is “a far cry from the organisation first encountered” in March 2022, and that “considerable progress” has been made even since the third report.
With Sandwell “now an organisation that is resilient and agile enough to provide its services to residents whilst withstanding adversity, and one with the plans, aspiration and people to strive for excellence independently”, the commissioners concluded that it “is now meeting its Best Value Duty and is capable of taking forward its improvement independently”.
Thurrock Council has been under intervention, with commissioners appointed, since 2 September 2022, after concerns were raised about the scale and commercial risk it was facing. The intervention was expanded in March 2023.
A third report from commissioners on the progress of the intervention, submitted in January, described “continued progress”, with the council “owning its recovery” and “demonstrating it is able to take difficult decisions”.
“I am pleased to see the strengthening of member officer relationships and that all councillors agreed to adopt and commit to the Enhanced Improvement and Recovery Plan in October; it is important that there continues to be a whole-council approach to Thurrock’s recovery,” Hoare said.
But Thurrock’s financial situation remains substantial and “should not be underestimated”, the report warned.
“There has undoubtedly been good progress at Thurrock, and it is imperative focus is maintained in the months ahead on the long-term priorities, to continue to build upon and drive the necessary improvements,” Hoare said.
Finally, Hoare updated parliament on a response from the Tees Valley Combined Authority’s mayor to a report of an independent panel investigating the authority’s oversight of the South Tees Development Corporation and Teesworks Joint Venture. No evidence of corruption or illegality was found by the panel, but recommendations were made on governance and oversight.
The mayor has accepted, in principle, all the recommendations for the Combined Authority and Development Corporation, Hoare told parliament.
“I welcome the independent support the mayor is seeking from the LGA and the Centre for Governance and Scrutiny and have encouraged him to make full use of independent peer challenge and support,” Hoare said.
“I am encouraged by the progress within the first month and keen to give time now for the mayor to develop his plans further and implement the changes required. These will enhance the successes of the Teesworks regeneration by ensuring governance arrangements and accountability are strong and transparent, and supported by robust scrutiny.”
Hoare has asked for further updates from the mayor, initially after six months.
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