Liverpool City Council

Steve Reed Excerpts

Wednesday 24th March 2021 Commons Chamber

[Steve Reed (Croydon North) (Lab/Co-op)]

I am grateful to the Secretary of State for advance sight of his statement and the report and, indeed, for his openness with me throughout the process.

This report raises grave and serious concerns about decision making in key functions of Liverpool City Council. All councils are under an obligation to meet their best value duty to ensure value for money at all times. In these respects, Liverpool City Council has been found severely wanting. Labour, both here and our leadership at the city council, accepts this report in full. The council will respond to the letter from the Secretary of State in detail, but we support his intention to appoint commissioners, not at this stage to run the council, as he says, but to advise and support elected representatives in strengthening the council’s systems.

This is a measured and appropriate approach. I want to reassure people in Liverpool that it does not mean that Government Ministers are coming in to run their city directly. This is not, as some would put it, a Tory takeover. It is about the Government appointing independent people of the highest professional standing to help the council improve as quickly as possible, and intervening directly only if the council’s elected leaders fail to implement their own improvement plan.

Investigations are currently under way into matters raised in the report and I will not pre-empt them. I do, however, want to reiterate my party’s absolute commitment to protecting the public interest at all times and upholding the highest possible standards in public life. Given the concerns raised in this report, the general secretary of the Labour party intends to appoint a senior figure to lead a review, and reassure the people of Liverpool that the Labour party takes these concerns seriously and will take action against anyone in our ranks who was involved in wrongdoing of any kind. Our councillors in Liverpool have already met senior Labour councillors from other parts of the country who will support them in strengthening the city council’s defences against any risk of fraud.

The overwhelming majority of councillors and frontline staff will be shocked by what they read in this report. As the report and the Secretary of State have made clear, the severe institutional weaknesses identified do not obscure the outstanding work they have all done together over many years. The Prime Minister was right to praise the council’s impressive work in getting the city through the pandemic, and I want to add my thanks to everyone who continues to play a part in that. In particular, the report praises the council’s chief executive, Mr Tony Reeves, and I offer my support to him and to the acting mayor, Councillor Wendy Simon, for the work they have already started to put things right. I would also like to put on record my thanks to Mr Max Caller and his team for putting this very important report together.

This is a moment for change, and I know that everyone who cares about the great city of Liverpool and its wonderful people will accept this report and use it to strengthen the council for the future.

[Robert Jenrick]

Can I thank the hon. Gentleman for the remarks he has just made and for the way in which we have worked together over recent months? He has been most helpful and constructive, and I hope that can continue. I thank him on behalf of the Government for the remarks he has made with respect to the Labour party and the Labour group on Liverpool City Council, which are extremely welcome. The step we have taken today is unusual, and it is better to do it in a cross-party way. We all share the same interests, which are the delivery of public services, ensuring that the people of Liverpool get the value for money and the council that they deserve, and ensuring that the city can attract the inward investment, regeneration and good-quality development that it certainly needs and that we want to see delivered as we come out of the pandemic.

The hon. Gentleman was right—I thank him again—to highlight the praise for the chief executive, Tony Reeves, who has done an outstanding job. In my remarks earlier, I praised his conduct and that of the other statutory officers at the council. The hon. Gentleman is also right to say that this report focuses on particular functions of Liverpool City Council and does not comment on the wider delivery of public services in the city by the council. There is no reason to question the delivery of adult services, children’s services or other important functions that people in the city rely on. He is also right to praise the work of many people in Liverpool, including within the city council, in their response to the covid-19 pandemic.

I would underline my remarks once again that this is a report about Liverpool City Council. It is not about the neighbouring councils across Merseyside, and neither is it any reflection on the Mayor of the Liverpool city region, Steve Rotheram, to whom I extend my thanks once again for his co-operation and support. It is right that we take this action, and I hope that we can continue to work together on it. None of us does this lightly. Localism is our objective, but localism does require local accountability, transparency and robust scrutiny, and that I hope is what we can now achieve.