Government commissioners now have the power to "amend" the budget plans of Liverpool City Council after it took over all finance and government decisions of the troubled local authority.
The Whitehall team will also now be able to appraise the work of the council's chief executive and to sack, appoint and discipline staff at the Cunard Building.
The ECHO revealed today that an expanded government intervention at the city council has seen a new Finance Commissioner appointed to oversee all fiscal decisions at the Cunard Building. The now five-strong team of commissioners will also have new powers over governance and recruitment when it comes to how Liverpool is run.
READ MORE: Government confirms expanded takeover of Liverpool City Council
The dramatic expansion of powers, ordered today by returning Levelling Up Secretary Michael Gove, comes at a crucial time for the council as it attempts to set a balanced budget. Mayor Joanne Anderson recently revealed the council must make a further £73m of savings before any further Whitehall cuts are announced.
She and other leaders will now be concerned at the level of power the government's commissioners will have over these budget decisions.
A document explaining the intervention states that the commissioners will now have "the power to amend budgets where commissioners consider that those budgets constitute a risk to the authority’s ability to fulfil its best value duty." It adds that the commissioners will also be able to "provide advice and challenge to the authority in the setting of annual budget and a robust medium term financial strategy."
Liverpool Council's latest budget cuts from central government will move past the £500m mark as it sets its next budget. It had already been predicted that some very difficult decisions will be required to make up the £73m shortfall into next year, but the new powers mean the government commissioners will have a key role in these decisions.
In his letter to lead commissioner Mike Cunningham today, Mr Gove made clear that he expects the council to be able to lead on these decisions, but made clear that the commissioners will have the power to step in if they decide.
Mr Gove wrote: "As with the directions issued on 10 June 2021, which remain in force, I expect the council to continue to make decisions in these areas with commissioners stepping in by exception as and when you see fit."
The document also sets out the new powers the commissioners have over appointments, organisation and the performance of staff at Liverpool City Council. This includes the ability to appraise the chief executive and line-manage their own staff.
It states that these powers include: "All executive powers relating to the appointment, suspension and dismissal of direct reports to the Chief Executive and their direct reports" as well as "all non-executive powers with relation to the organisation of the Authority’s staff, their appointment and management."
Finally, it states that the commissioners team has "The right to take part in the performance appraisal of the Chief Executive and any direct report to the Chief Executive."
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