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Liverpool Echo
Liverpool Echo
National
David Humphreys

Everton to pay £500,000 to Liverpool Council over Bramley Moore work

Liverpool Council will lose out on more than £300,000 in fees spent on due diligence over Everton ’s new stadium project.

It has been confirmed that Everton will pay £502,000 of the £841,000 incurred by Liverpool Council after it was agreed last month that negotiations between the two parties would conclude. In a joint statement from the local authority and the club, it was said that an “amicable settlement” had been reached regarding the Bramley Moore project.

Both parties said it was “reasonable and proportionate” for the Premier League club to fork out more than £500,000 given that the work done was “solely for the benefit of Everton.” A proportion of the fees incurred related to Liverpool Council exploring the use of any future stadium in its bid for the 2022 Commonwealth Games which Everton would not be liable for.

READ MORE: Liverpool Council avoids another expensive contract mix-up at the last minute

The agreed settlement has no new impact on the council’s finances as an amount had been set aside during the 2022/23 budget process. The local authority gave chief executive, Tony Reeves, the power to bring to an end the “outstanding dispute” between the two parties after hundreds of thousands of pounds were spent on fees between 2016 and 2019 as it agreed to help fund Everton’s new Bramley Moore Dock stadium project.

Everton later sought alternative sources of funding and did not pursue funding with the council. Local government commissioners appointed to oversee Liverpool Council highlighted the “failure of governance” around the project.

The commissioners have also ordered an investigation into how the council incurred “significant expenditure” between April 2016 and March 2019. It is said that during this period Liverpool Council failed to manage costs, “some of which are now irrecoverable.”

During last month’s cabinet meeting, deputy Mayor Jane Corbett said the agreement “resolves one of a number of outstanding finance issues at the council and contributes towards the resolution of outstanding projects working with the local government commissioners.” The agreement has been met with criticism from opposition Liberal Democrat councillor Kris Brown.

Cllr Brown, chair of the council’s audit committee, said: “While it’s good to see the council reclaiming something from this sorry saga with Everton, we’ve effectively thrown £339,000 down the drain.

“For a council that is cash strapped and tax payers facing a whopping bill for up £16million caused by the energy contract debacle, to lose out on over £300,000 in this Everton loan affair is just another kick in the teeth. The legacy of Joe Anderson is still hurting our city, mixed with new financial harm under the beleaguered leadership of Mayor Joanne Anderson.

“Liverpool deserves better.”

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