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Liverpool Echo
Liverpool Echo
National
Liam Thorp

Liverpool heads further into the unknown after week of chaos

It was Harold Wilson who famously stated that a week is a long time in politics.

The former Prime Minister and Huyton MP's evergreen quote feels almost purposely crafted for the city that lies closest to his former constituency. It's hard to think of a seven day period that wasn't rife with drama and difficulties in Liverpool over the course of the past few years.

Even by the city council's tumultuous standards, this past week has been particularly seismic. The week started with the resignation of the most senior civil servant in the city and moved on to the removal of the city's highest elected office. Liverpool politics just doesn't do things by half.

READ MORE: Liverpool Council chief executive Tony Reeves resigns

As a political journalist, these are of course fascinating times, but I imagine most residents of this proud city are crying out for some much-needed stability in terms of the way their city is run. Unfortunately there is not much sign of that on the horizon.

The resignation of the council's chief executive Tony Reeves was not a shock to those involved with the council or the city's political scene. Rumours had been building for days that he was about to go.

The chief executive had taken a period of leave in recent weeks and essentially had decided he was not planning to come back. During that time away he was locked in discussions and deliberations about the manner and terms of his departure. Those terms are yet to be revealed but are expected to be substantial. Mr Reeves was earning around £225,000 a year after all.

The fact Mr Reeves resigned with immediate effect - without any suggestion of a notice period or gardening leave - adds more weight to the idea that this was a departure both enforced and negotiated by the government commissioners currently overseeing the work of the council.

Sources suggest the relationship had been strained for months and in recent times the commissioners had become determined to remove Mr Reeves from his office. He knew this and decided it was his best option to jump before he was pushed.

The latest report from the commissioners is due to be published any day now. Mr Reeves knew it would be highly critical of him and that if he hadn't already gone, it would likely have been used to justify his removal.

There is a widespread belief that the report, when it finally arrives, will recommend further interventions at the council and that this could include giving the commissioners greater powers over the shaping of the senior management team as well as financial decisions.

Some feel those powers are already being exercised. The council's appointments panel recently drew up a shortlist of candidates to fill the director of neighbourhoods role - one of many senior positions yet to be filled on a permanent basis - but it is understood the commissioners did not agree with the names put forward and the process was pushed back.

There is a dark irony to the idea that Mr Reeves' four-year stint at the council was ultimately ended by the commissioners he was instrumental in bringing to Liverpool. It was his internal investigations along with those of Merseyside Police that would lead to the high-profile arrests that would trigger the government inspection and its consequences.

But that relationship had not been good for a while. In April, lead commissioner Mike Cunningham admitted in a chat with the ECHO that there had been some 'very frank and difficult conversations both ways' between his team and Mr Reeves. Things only got worse from that point.

A few weeks after that interview, the council was rocked by the revelations of a series of huge mistakes in the handling of its electricity contract. The quite remarkable litany of errors included officers failing to inform the cabinet and mayor that its existing electricity supplier had withdrawn from the commercial market before an extension to the deal was signed off by the political leadership.

The extraordinary saga has left the council facing a potential additional energy bill of £16 million, with its maintained schools across the city and the local fire service also hit hard by virtue of being part of the same deal. There was an immediate appetite for answers and accountability and senior officers were in the firing line. It was, after all, the commissioners who had first picked up on the unfolding disaster.

One of those targets was Mel Creighton, the council's director of finance - an ally of the chief executive's who had recently been promoted to take on the additional role as his deputy. Her resignation was announced at the end of May and while her job will officially finish at the end of August, she has never returned to her desk.

But even before that dramatic resignation, it was clear that some were pointing the finger of blame purely at her boss. At a fiery emergency finance committee meeting a few days earlier, a number of councillors rose to tell the chief executive, in no uncertain terms, that he should step down.

With Ms Creighton absent at the time, it was Mr Reeves taking all the bruising blows from around the chamber. At times he looked defeated and perhaps knew this was the beginning of the end of his tumultuous time in Liverpool. Two months later and he would be gone.

Speaking at Wednesday's full council meeting, just days after the resignation was confirmed, opposition leader Richard Kemp made clear exactly how he felt about the departure of the chief executive. He told the meeting that Mr Reeves was 'forced out by the diktat' of the government team. A move he described as 'disgraceful.'

Cllr Kemp has been very open with his criticisms of the commissioner team, said recently: ""They are a group of people who have no understanding of the way that Cities work. They are led by someone with no local government experience, they have little experience of working in major urban areas and do not understand the role of a core city like Liverpool in a conurbation like our city region. Quite frankly they are not up to the job."

Having got rid of Mr Reeves, there will be increasing pressure on the commissioners from all sides of the council now. Many agree with Cllr Kemp's analysis and with the chief executive now out of the picture, further questions will be asked about what progress they are actually leading at the Cunard Building.

The council moved quickly to appoint an interim figure to the statutory position of head of paid service. Adult services director Anne Marie Lubanski - who only joined the authority in January - has been handed the position for now. A full-time interim chief executive will now be sought. One name being mentioned in political circles is Lord Bob Kerslake. At this point there is no suggestion the former head of the civil service would even want the gig - but most would agree someone of his stature and experience is really needed in Liverpool right now.

As if the departure of the city's most senior official was not enough drama for one week, Liverpool Council also confirmed a huge change to its entire system of governance on Wednesday. Its an issue that has been debated for years and has driven the city's Labour group apart on a number of occasions.

Having promised to hold a referendum on whether to retain or scrap the mayoralty when she stepped in to the void left by the departing Joe Anderson, Mayor Joanne Anderson then said this was no longer financially justifiable as the Caller Report had led to Liverpool's next round of elections being moved to May 2023.

Instead, a 'meaningful' consultation was carried out over eight weeks where residents were asked to give their views on whether Liverpool should continue to be governed by a directly elected mayor, return to a leader and cabinet model or move to a committee system, where decisions are made by a selection of councillors from different parties.

To say the results of the consultation were underwhelming would be too kind. Just 4% of residents responded, with none of the options gaining huge traction. However, of the three governance options, the mayoralty came out on top, with the leader model bottom of the pile.

So there was some understandable frustration as the ruling Labour group announced they would be voting for that least popular model. It has been widely known that key members of the group have wanted to revert to that system for some time and the casual dismissal of the public's views will not have done much for people's faith in local democracy.

As expected, the vote was passed and from May 2023 the position of directly elected mayor of Liverpool will be removed and replaced by a leader and cabinet system. We can now expect an extended bun fight amongst the city's Labour group as to who will lead the council from May 2023 onwards. A number of councillors are said to already be on manoeuvres.

All of this together - and the prospect of all-out elections next year - means Liverpool is likely to remain in an unstable position for some time to come. The prospect of the Conservative government controlling much of the council's day-to-day operations as the city's Labour group pulls itself apart over its next leader is a deeply unpalatable - but now highly possible one.

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