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Inspector’s report into Liverpool City Council reveals litany of errors on housing strategy
An independent inspection into Liverpool City Council’s (LCC) activities has highlighted a number of failures with its housing strategy, which reflected poor value for taxpayers, left sites undeveloped and saw Section 106 agreements omitted.
A highly critical ‘best value’ report by inspector Max Caller was published today, after being commissioned by the government as part of increased scrutiny on the Labour-controlled council following the arrest of its mayor Joe Anderson.
The report uncovered weaknesses in the council’s housing company, Liverpool Foundation Homes (LFH), which LCC said is now being wound down because it is no longer being funded to achieve the goals identified when it was created.
LFH was launched amid fanfare by the council in late 2018 with ambitions to build 10,000 homes over a decade.
Mr Caller’s report said: “Had LFH continued in its current form, the accumulation of LCC funded debt based on highly marginal schemes, not forecast to come good for many years, would have presented major problems.
“Some of the propositions put forward to the LFH board included schemes that LCC had been involved in through the sale and development process and which would not recover their costs if disposed of on the open market.”
Part of the problem identified by the inspector was the council’s “small sites” scheme, established in 2014, which involved 16 plots being sold to developers with a particular interest in buyers that offered “innovative approaches not previously explored”.
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Disposals of these sites was conducted “without any apparent oversight or challenge through proper scrutiny processes by members,” the report said, with Mr Caller adding that “no income has ever been received by LCC from these disposals and at the date of this report seven sites remain undeveloped or only partially developed”.
Additionally, the report highlighted instances where Section 106 agreements, which determine the level of affordable housing included in a development, were not known.
The report said: “A number of instances were noted where works were recorded as having started on site, either in the absence of consent, satisfaction of conditions or the entering to of planning agreements eg Section 106 agreements.”
Requests for the council to take action on the lack of Section 106 agreements “were either refused or ignored”, according to the report.
Government commissioners have now been appointed to take control of aspects of the council’s functions, including regeneration and property management.
Housing secretary Robert Jenrick said the report “paints a deeply concerning picture of mismanagement, the breakdown of scrutiny and accountability, a dysfunctional culture putting the spending of public funds at risk and undermining the city’s economic development.”
Acting Liverpool mayor Wendy Simon and LCC chief executive Tony Reeves said: “This is a difficult day for our organisation and we take the report findings extremely seriously.
“The inspector’s report has highlighted several failings, but there is a collective commitment from both councillors and officers to learn from these mistakes.
“We would like to reassure all residents and businesses that we will take action to address all of the issues highlighted. We know we need to rebuild your trust.
“A detailed improvement plan is being drawn up and will be implemented in full.”
Mr Anderson was released on bail in December last year after being investigated over claims of bribery and witness intimidation relating to building contracts in Liverpool. He denies any wrongdoing.
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